GST on fuel if Centre drops cess, says Tamil Nadu finance minister Palanivel Thiagarajan

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The Tamil Nadu government will reconsider bringing petrol and diesel under the ambit of the goods and services tax (GST) if the Union government drops the undivided heavy cess charges on the two fuels, finance minister P T R Palanivel Thiagarajan told reporters here on Monday.

The minister made this statement in response to the statement made by his predecessor and AIADMK coordinator O Panneerselvam, asking the DMK government if they had changed its stand with regard to bringing fuel under GST from their tenure as the opposition and on assuming power.

Thiagarajan pointed out that the Union government is levying heavy cess of Rs 32.9 per litre petrol and Rs 31.8 on a litre of diesel, which goes undivided with the states. He said that GST introduced in 2017 has taken away all 75% taxation rights of all the states, leaving them with only fuel and liquor under their control.

None of the state governments are ready to give up their rights on fuel under these pressing conditions as it would further burden them and disturb their finance management and criticised the BJP government of burdening the common man with heavy taxes on fuel.

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