Will Petrol and Diesel Come Under GST? Nirmala Sitharaman's Reply
The Indian government has been grappling with the issue of whether to bring petrol and diesel under the Goods and Services Tax (GST) regime. The debate has been ongoing for several years, with various stakeholders expressing their opinions on the matter. Recently, Finance Minister Nirmala Sitharaman addressed the issue, providing clarity on the government's stance.
The Background
Petrol and diesel are currently exempt from GST, which has led to a significant revenue loss for the government. The exemption is based on the principle that these fuels are essential commodities and should not be subject to taxation. However, the government has been under pressure to bring them under GST to increase revenue and simplify the tax structure.
Sitharaman's Reply
In a recent interview, Sitharaman clarified the government's stance on the issue. She stated that the government is not planning to bring petrol and diesel under GST in the near future. She emphasized that the government is committed to keeping these essential commodities exempt from GST to ensure that they remain affordable for the common man.
The Reasons
Sitharaman cited several reasons for not bringing petrol and diesel under GST. She highlighted that the government is concerned about the impact of GST on the prices of these fuels, which could lead to a significant increase in the cost of living for the common man. She also emphasized that the government is committed to keeping the prices of these fuels low to ensure that they remain affordable for the masses.
The Impact
The decision not to bring petrol and diesel under GST is likely to have a significant impact on the economy. The government will continue to lose revenue from these fuels, which could lead to a strain on the public exchequer. However, the decision is also likely to benefit the common man, who will continue to enjoy the benefits of low prices for these essential commodities.
Conclusion
In conclusion, the Indian government has made it clear that it is not planning to bring petrol and diesel under GST in the near future. The decision is based on the principle of keeping these essential commodities affordable for the common man. While the decision may have a significant impact on the economy, it is likely to benefit the masses who rely on these fuels for their daily needs.
FAQs
Will petrol and diesel come under GST?No, the government is not planning to bring petrol and diesel under GST in the near future.
Why are petrol and diesel exempt from GST?Petrol and diesel are exempt from GST because they are essential commodities and the government wants to keep them affordable for the common man.
What are the reasons for not bringing petrol and diesel under GST?The government is concerned about the impact of GST on the prices of these fuels, which could lead to a significant increase in the cost of living for the common man.
What is the impact of not bringing petrol and diesel under GST?The decision not to bring petrol and diesel under GST is likely to have a significant impact on the economy, with the government continuing to lose revenue from these fuels. However, it is likely to benefit the common man, who will continue to enjoy the benefits of low prices for these essential commodities.
What is the government's stance on bringing petrol and diesel under GST?The government is not planning to bring petrol and diesel under GST in the near future, and it is committed to keeping these essential commodities exempt from GST to ensure that they remain affordable for the common man.
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