GST On Petrol Diesel: Oil prices will decrease by ₹ 20; the Central Government is considering bringing it under the ambit of GST

Posted on 24th Jun 2024 by rohit kumar

The central government is considering bringing petrol and diesel under the ambit of GST. If this happens, the prices of petrol and diesel can come down by about Rs 20. Including petroleum products in GST will not only help oil companies reduce the tax paid on inputs but will also bring uniformity in taxes on fuel across the country. This means that petrol and diesel will be available at almost the same price across the country.

 

In fact, in the 53rd meeting of the GST Council, Finance Minister Nirmala Sitharaman said, the central government is ready to bring petrol and diesel under the ambit of GST. Now the states have to make a decision in this regard and decide its rates together. Even if the GST rate is agreed upon and the highest tax of 28 percent is imposed on petroleum products, the common people will get relief of Rs 19.71 per liter on petrol and Rs 12.83 per liter on diesel. However, this may affect the revenue of the governments in the form of tax.

 

In Delhi, petrol is being sold at Rs 94.72 per liter, while the price of diesel is Rs 87.62 per liter. On this basis, after the implementation of GST, the price of petrol in Delhi will come down to Rs 75.01 and diesel to Rs 74.79 per liter.

 

A tax of Rs 35.29 on one liter of petrol

 

If you buy one liter of petrol in Delhi, you pay Rs 94.72. Out of this, a total tax of Rs 35.29 is levied, which includes Rs 19.90 excise duty and Rs 15.39 VAT. Excise duty goes to the Centre, while VAT is collected by the state government. Similarly, on buying one liter of diesel for Rs 87.62, a total tax of Rs 28.62 is levied. In this, the share of excise duty is Rs 15.80 and VAT is Rs 12.82.

 

Amendment in GSTR-1 possible before GST payment: GST taxpayers will now have the option to amend the outward supply or sales return Form GSTR-1 before paying monthly or quarterly taxes. However, GSTR-1A has to be filed before filing the return in GSTR-3B for the relevant tax period. The GST Council in its 53rd meeting had recommended a new optional facility through Form GSTR-1A to facilitate taxpayers to amend details and add additional information in Form GSTR-1 for a tax period. This move will ease doing business.

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