[ad_1]
The all-powerful GST board could, this week, consider adding jet fuel and natural gas in the scope of the GST, but the tax slab has a chilling effect, said people who know Well the question. TPS) was introduced on July 1 last year, five commodities – crude oil, natural gas, gasoline, diesel and jet fuel (ATF) – were excluded from its jurisdiction for the time being.
The GST Council, headed by the Union Finance Minister and composed of representatives from all sectors, stated that the Center and the Member States would immediately retain all these products under the tax system. Products and Services (GST). Member states and Union territories are expected to meet on 21 July and a proposal to subject natural gas and ATF to the new indirect tax regime could be debated, they said. , 18 and 28 percent of GST tax slips are provi
The Center currently levies 14% excise duty on alternative fuels. In addition to this, states charge up to 30% sales tax or VAT – Odisha and Chhattisgarh have 5% VAT while Tamil Nadu taxes 29% for ATF, 25% for Maharashtra and Delhi and 28% for Karnataka.
a principle was lifted by totaling central and state levies to maintain the neutral tax incidence, in the case of ATF, the tax incidence would reach 39 to 44 percent in the states having the largest airports
. ATF is taxed at a maximum of 28 percent, there would be a huge revenue loss. One solution might be to allow states to take some of the VAT above the peak rate.
But the Center and the states must agree, adding that a 28% increase in the GST would mean an increase in the price of fuel. The combined 39 percent tax in Delhi, which hosts the busiest airport in the country, compares to just 7 percent of the VAT in Singapore.
In the case of natural gas, the situation may lead to price increases in
The central government does not levy any excise duty on natural gas sold to industries but receives 14 per cent of On the other hand, the states levy up to 20 per cent of VAT – Delhi has no VAT during Gujarat levies 12.8 per cent of VAT, Bihar 20 per cent, Karnataka 14 , 5% and Maharashtra 13.5%.
According to sources, a 12% tax on natural gas would result in a loss of revenue for the states, but at 18%, increase in the cost of producing energy and
For CNG, the editing would be a problem, they said.
[ad_2]
Source link
