India

Postponement of decision to include petrol and diesel in GST; Reason ..

The 45th Marathon GST meeting was held under the chairmanship of Union Finance Minister Nirmala Sitharaman. The meeting was attended by senior officials from the central government and the state. After the meeting, Finance Minister Nirmala Sitharaman briefed reporters on the decisions taken at the meeting. The meeting also did not decide to bring petrol and diesel under GST. Therefore, the general public’s hopes that petrol and diesel will become cheaper have been dashed. Many in the conference pointed out the inclusion of petrol and diesel in the GST. States opposed bringing petrol and diesel under GST. Therefore, this is not the right time to bring petroleum products under GST, said Finance Minister Nirmala Sitharaman. A petition was filed in the Kerala High Court on the issue. The Kerala High Court said that the matter should be taken up in the GST Council first, according to which the matter was taken up, ”said Finance Minister Nirmala Sitharaman.

On the other hand, there are expensive life-saving drugs in addition to Corona that are discounted. Finance Minister Nirmala Sitharaman has said that there will be no GST on those drugs. It was earlier decided to exclude free imported respirators, oxygen separators and other equipment for the treatment of corona patients, as well as a cap of amphotericin-B on mucormycosis from the Goods and Services Tax (GST). This concession will be applicable till December 31, Union Finance Minister Nirmala Sitharaman announced at a press conference.

  • GST on retro-fitment kits in vehicles for persons with disabilities at 5 per cent
  • GST rate on biodiesel (supplied to oil marketing companies for mixing with diesel) from 12 per cent to 5 per cent
  • GST rate on fortified rice kernels used in schemes like Integrated Child Development Services Scheme from 18 per cent to 5 per cent
  • National charges are levied for permitting freight vehicles to drive across India or in the states. Exemption from GST.

GST was introduced in the country from July 1, 2017. Taxes like excise duty and state duty were included in GST. But petrol, diesel, ATF, natural gas and crude oil are excluded from the scope of GST. Both the central and state governments get huge revenue from taxes on these products.

GST collection for the month of August

In the last few months, GST collection has crossed Rs 1 lakh crore. However, in June, the collection was below Rs 1 lakh crore. Then in July, positive results were seen again and the collection was over one lakh crore. One lakh crore has been collected even in the month of August. Last month, Rs 1.12 lakh crore was deposited in the exchequer. This is an increase of 30 per cent over August 2020. However, GST collection in July was Rs 1.16 lakh crore. The deficit is higher this month than in July.

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