Will petrol and diesel come under GST? Council to take call in first in-person meeting since start of pandemic

The GST council may decided today on a range of topics including whether to include petroleum products under GST ambit which will significantly reduce prices or petrol and disel which have now gone past the Rs 100 mark.

By Gulveen Aulakh, ET Bureau | Updated: Sep 17, 2021, 09.48 AM IST

Apart from fuel prices, GST council may take up a host of other issues today

The Goods and Services Tax Council will today hold its first physical meeting since the start of the pandemic and is expected to take up issues such as inclusion of petroleum products within the tax ambit, extension of compensation for states beyond 2022 and a host of tax changes including continuation of reduced tax on Covid-19 relief materials. ET’s Gulveen Aulakh takes a look

1) PETROL, DIESEL WITHIN GST

Rising fuel prices have raised clamour for inclusion
Higher tax, cess on fuels have raised prices to record high
GST Council Secretariat has asked the council to discuss inclusion
Kerala HC had said council should decide on inclusion
States levy taxes on petroleum products, earn revenue

2) EXTENSION OF COMPENSATION PERIOD

Centre borrowing Rs 1.59 lakh cr to meet compensation cess gap
Centre confident of meeting gap for FY22 and arrears of FY21
Centre to present options before states on extension period

3) TAX RELIEF EXTENSION FOR COVID-RELATED DRUGS, MEDICINES

Tax exemption on Amphotericin B and Tocilizumab till Dec 31
Extension of concessional rate of 5% on Remdesivir and Heparin, anticoagulants till Dec 31
Lower GST to 5% from 12% on Favipiravir and 7 other drugs, till Dec 31

4) RATE CHANGES TO CORRECT INVERTED DUTY STRUCTURE