NATIONAL: The implementation of the Goods and Services Tax (GST) in India marked a significant overhaul of the country’s indirect tax system. While the intent of the central government was always to include petroleum products like petrol and diesel under GST eventually, this has not yet been realized. According to Finance Minister Nirmala Sitharaman, the inclusion of these fuels under GST remains a priority for the central government. However, it is now up to the states to make this transition possible.

Currently, petrol and diesel are subjected to different tax regimes by individual states, leading to varying prices across the country. Bringing these fuels under the GST would standardize tax rates and potentially lower prices for consumers. However, states are concerned about losing a major source of revenue, which has delayed the inclusion of these products under the GST umbrella.

Sitharaman emphasizes that while the central government supports the move, achieving consensus among the states is crucial. The central government’s vision is to simplify the tax structure and bring uniformity, which would benefit the economy by reducing costs and improving efficiency. The ongoing discussions between the central and state governments will be critical in determining the future of petrol and diesel under GST.