New Delhi: During the discussion on Finance Bill-2021 in the Parliament, Union Finance Minister Nirmala Sitharaman had said in the lower house on Tuesday that the government is ready to bring petrol-diesel under the purview of GST on the proposal of states. But on Wednesday in the Rajya Sabha, BJP MP Sushil Kumar Modi has expressed his inability to do so for the next 8-10 years.
In the Upper House, Sushil Modi has said that at present, there is a tax of 60 rupees for 100 rupees on petrol and diesel. Of this, 35 rupees remain of the Central Government and 25 rupees for the State Governments. Not only this, 42 percent of the 35 rupees of the Center goes to the state governments. He said that he has been associated with the GST Council. Generally, petrol and diesel are said to be brought in the GST, they want to know from the house that if the petrol and diesel are brought to the GST, then from where the revenue loss of two lakh crore rupees will be made to the states. The Center and the state together collect annual revenue of Rs 5 lakh crore from it, where will it be replenished?
Sushil Modi further said that the highest tax slab in GST is 28 percent. Right now we are taking a 60 percent tax on petrol and diesel. In such a situation, the loss of revenue of two to two and a half lakh crore rupees will be compensated from where. If it is brought in GST, then the center will get 14 rupees and the states will get only 14 rupees tax. In such a situation, it is not possible to bring petrol and diesel in the GST for the next 8 to 10 years. Neither Congress-ruled states nor BJP-ruled states will agree to it.
Also Read:
North Korea shoots missiles, US says it is 'normal testing'
Netherlands: Covid-19 restrictions in extended until April 20: PM Rutte
Supreme Court refuses to hear Param Bir Singh's plea, says go to High Court first