PUDUCHERRY: Puducherry opposed any plans to initiate talks aimed at taxing diesel, gasoline and petroleum products under the Goods and Services Tax (GST).
At the GST council meeting, Pondicherry, represented by Minister PWD, K Lakshminarayanan, said states derive considerable revenue from gasoline VAT and GST. If gasoline and diesel are subject to the GST, it will have a negative impact on state revenues.
Regarding Pondicherry, the revenue from the VAT rate on petrol and diesel constitutes nearly 46% of the total revenue from commercial taxes (VAT + GST). The UT of Pondicherry is already suffering from loss of income after the introduction of the GST, due to its structural problems. In addition, the GST compensation payment will also end by June 2022. If gasoline and diesel are also subject to GST, revenues will be affected and UT will face a severe financial crisis. .
For the implementation of the GST, the states gave up their fiscal autonomy. Currently, states only have autonomy to tax crude oil, high speed diesel, motor gasoline (commonly known as gasoline), natural gas, aviation turbine fuel ( ATF) and alcohols intended for human consumption.
The date on which petroleum products become subject to the GST is a political decision that falls exclusively within the purview of the GST Council.
Therefore, a decision on the inclusion of gasoline and diesel does not need to be taken by the council, since the concern is the collection of revenue for the implementation of various aid schemes. social by the UT government.