States can propose inclusion of fuels in GST, says centre

The Lok Sabha on Monday resumed normal business after a fortnight’s protest by opposition parties over spiralling fuel prices. The government reached an understanding with the opposition to complete budget-related businesses and pass some bills during the week. The finance bill could be passed by the House on Wednesday, it is learnt.

The Zero Hour saw the government putting the onus on state governments after MPs across party lines expressed concern over high fuel prices and demanded the government take immediate steps to slash fuel taxes and lower prices even by including fuel in GST. K Muralidharan of Congress and Mithun Reddy lamented how higher central taxes have pushed up petrol and diesel prices and asked why the GST option was not considered yet.

MoS for finance Anurag Thakur said it was the GST Council which framed the GST agenda for consideration. Rajiv Ranjan ‘Lalan’ Singh of JDU then demanded to know if the Centre would approach the GST Council with the suggestion of including petrol/diesel in GST, as once proposed by then FM Arun Jaitley. Thakur responded no state had so far given a proposal for the same. “If any state feels that petroleum products should be brought under GST, then the Centre would have no objection in discussing it,” he said. In his earlier response to Reddy and Muralidharan, Thakur maintained Centre and states had to think about reducing taxes on petrol and diesel. "The Centre is ready to consider the idea of reducing the tax on petrol and diesel; states should also consider it,” he said and added that many MPs belong to other parties that run state governments. He urged the MPs to take up the issue with their respective state governments.