Industry body urges government to bring petrol, diesel under GST to reduce fuel rates

The Chamber of Trade and Industry (CTI) has asked the government to bring petrol and diesel under the ambit of GST to bring down the fuel rates. Petrol rates have exceeded Rs 100 a litre in many parts of the country, with diesel prices also coming close to Rs 100 a litre mark.

It also urged the central government to withdraw the increased excise duty that was introduced last year due to the COVID-19 pandemic.

“Crude oil was the cheapest in the last 16 years in 2020-21. During corona, between March and May, 2020, when crude oil became cheaper, the central government increased the excise duty on petrol by Rs 13 per litre and diesel by Rs 16 per litre,” a statement from the CTI said.

It noted that the dealer price of petrol in Delhi is Rs 40.62 per litre, central excise duty on it is Rs 32.90 per litre, VAT is Rs 23.13 per litre, while dealer commission is Rs 3.60 per litre, that is, the tax being levied on per litre of petrol is Rs 56.03.

Similarly, the dealer price of diesel is Rs 42.39 per litre, excise duty is Rs 31.80 per litre, VAT is Rs 12.85 per litre while dealer commission is Rs 2.53 per litre, making the tax levied on diesel Rs 44.65 per litre.

CTI chairman Brijesh Goyal said the traders body had recommended bringing petrol and diesel in the “maximum luxury slab of 28 per cent of GST”, and levy Central GST (CGST) and State (GST) of Rs 18 per litre each on petrol. “Similarly, if Rs 15 worth of CGST and SGST each is levied on diesel, the price of diesel including dealer commission will be Rs 74.92 and diesel will become cheaper by about Rs 15 per litre,” Goyal said.

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