Union Minister of State for Home G. Kishan Reddy said the Centre was continuing with its efforts to impress upon States to allow petrol and diesel to be brought under the Goods and Services Tax (GST) regime. “Government of India is persuading … I think fuel will definitely come under the GST in the coming year,” he said, pointing out to the opposition of the State governments as a major share of their revenue now came from the tax they levy on fuel and liquor.
Mr. Reddy, who was addressing Federation of Telangana Chambers of Commerce and Industry (FTCCI) members, said this here on Thursday after the trade and industry body submitted a memorandum highlighting issues requiring urgent attention of the government in the backdrop of an economic slowdown. A consensus would be achieved as has been case with other issues concerning GST, the Minister hoped. In its memorandum, FTCCI sought to make a case for bringing petroleum fuels under GST, thus subsuming various taxes and cess, so that industry can avail input tax credit and thereby reduce cost of logistics and in turn cost of production.
The Federation also wanted electricity to be shifted to GST. It also wanted the 28% GST rate slab to be replaced with less than 18% “or more feasible rates.” Compliance burden was another issue highlighted by FTCCI. “We find with new procedures, KYC norms [and] other provisions, compliance burden has increased manifold… there is no time left for productive work.”