GST Council will decide on petroleum: FM
Government favours bringing petroleum products under the Goods and Services Tax (GST) ambit, but the GST Council will be the one to take a call on taxing these products as per the new indirect tax regime, said Union Finance Minister Arun Jaitley.
“The petroleum industry will continue to pay input tax on their purchases, but will not avail any benefit for the output. Sooner or later, the GST Council will have to take a decision on petroleum,” Jaitley said.
“As was decided by the Empowered Committee (EC) of states’ finance ministers, we have brought petroleum in the constitutional amendment for the GST, it is zero-rated and tax will only be applied when the GST Council decides,” said the Minister at a conclave organised by a TV news channel.
Petroleum, including oil and gas, is a strategic sector that is still not under GST, while the industry has been craving for its inclusion to avail the benefits of input credit.
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Via:: Stock – India Infoline