As on date ,there will be no levy of GST on Petrol and other petroleum products . Chief Economic Advisor Mr. Arvind Subramanian ,on this sunday ,stated that Petrol and other petroleum product shall be outside the ambit of Goods And Services Tax (GST) regime after its roll out.
At the same time it must be noted that Constitutionally petrol and other petroleum products will be within the GST system only . But , for time being it would be outside the GST .
It is pertinent to not that for the proper implementation of GST and micro economics related thereto , the inclusion and levy of GST is a must . Because, a major chunk of collection of taxes by State as well as centre and inflation is governed by such products even RNR ( Revenue Neutral Rate) is very much effectd by such products . Though , no GST will be on Petrol & Petroleum products , but whether we know the cost of non inclusion of such products , even for time being , on microeconomy of implementation of GST in India . For five reasons , the inclusion of Petrol and other petroleum products in GST is must :
a. Uniform taxation and abolition of other indirect taxation
b. Lower Revenue Neutral Rate (RNR)
c. To check inflation which will be there after implementation of GST in India
d. To complete the chain and extend real benefit of GST
e. To boost the GDP by 2%
Let’s hope that Petrol and other petroleum products are included at an early date so that GST can be implemented in its wider persepective . The real intention of GST is to minimise the cascading effect created by multiple taxes in the existing system and if exceptions are carved out then it will drastically effect the true spirit of GST reforms cum regime in India.
by Anandaday Mishra, Founder Advocate , AMLEGALS
( The author is one of the leading litigation and advisory advocate. He has published various research papers on GST . He handles cases in Tribunals & High Courts of India. He can be contacted on anand@amlegals.com .For more, please refer www.amlegals.com )
As per the Rules of the Bar Council of India, advocates are not permitted to advertise. By clicking on the “I agree” button, the user agrees and acknowledges that:
This website simply explains as to how litigation is handled, the advice is rendered for various practice areas of the firm and how our law firm i.e. AMLEGALS does it differently;
That the user has visited the website of our law firm to know about AMLEGALS, White Papers, Legal articles, Legal updates & Case laws on various areas of law that are published by the Firm from time to time.
AMLEGALS assumes no liability for the interpretation and/or use of the information contained on this website, nor does it offer a warranty of any kind, either express or implied.
AMLEGALS is not liable for any consequences of any action taken by the user by relying on material/information provided on this website. Nothing mentioned on the website should be construed as legal advice. For more information on our working and to get in touch with the AMLEGALS team, please feel free to get in touch on info@amlegals.com.
Leave a Reply