The government may bring natural gas and aircraft fuel (ATF) under the GST regime before petrol and diesel. The possibility of this has also increased because after the issue of GST compensation with the states is resolved, the government is preparing for a major change in the system of GST.
Sources say that the government wants to keep the rates low and GST exempt goods limited in the second phase of GST. According to sources, in the upcoming meetings of the GST Council, along with the change in the rates, at least two petroleum products (natural gas and ATF) can also be discussed. The decision to bring petrol diesel under GST by June 2022.
Sources say that the Ministry of Petroleum and Natural Gas has already recommended that these petrochemical products be brought under the purview of GST. Finance Ministry considers this in upcoming meetings.
The GST regime excludes crude, petrol, diesel, ATF and natural gas. LPG, kerosene and naphtha have been kept under GST. For this reason, companies face many difficulties. A member of the GST Council recently said that petrochemical products will not always be excluded from the purview of GST, but this may take time. At least the corona epidemic will have to wait until the effects on revenue collection are compensated. Currently, the GST collection in October has crossed Rs 1 lakh crore. This may help states agree to bring petrochemical products under its ambit in a phased manner.