(LiveMint(
Finance secretary Hasmukh Adhia on Friday said the all powerful GST Council will consider bringing petroleum products under Goods and Services Tax (GST) and it could happen in phases. Speaking on the issue, Central Board of Indirect Taxes and Customs chairman S. Ramesh said although there is demand for bringing petroleum products under GST, the GST Council will have to finalise modalities.
Currently, diesel, petrol, crude oil, natural gas and aviation turbine fuel are outside the purview of goods and services tax, and states have the right to impose value added tax on these items. “One of the demands that is there before us, we will see… everything will happen in stages,” Adhia said at an event in New Delhi.
The civil aviation ministry has time and again voiced its concern on the high rate of taxes on aviation turbine fuel, which accounts for a significant chunk of an airline’s operational costs and also has a bearing on air fares. Earlier, the civil aviation ministry had also written to the finance ministry seeking the inclusion of jet fuel under the indirect tax regime with full input tax credit at the earliest.
