Get All Access for $5/mo

Centre Ready To Bring Fuel Under GST, Says Petroleum Minister Hardeep Singh Puri also expressed the concern that it is unlikely that the states will agree to such a move as liquor and energy are revenue generating items for them

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Hardeep Singh Puri Twitter handle

Petroleum and natural gas minister Hardeep Singh Puri, on Monday, said that the government is ready to bring petrol and diesel under the goods and service tax (GST) regime.

"For bringing the petrol and diesel under the GST, the states have to agree. If the states make the move, we are ready. We have been ready all along. That's my understanding. It is another issue how to implement it. That question should be addressed to the finance minister," said Puri, during an interaction with reporters.

The minister also expressed the concern that it is unlikely that the states will agree to such a move as liquor and energy are revenue generating items for them. "It is not difficult to understand that the states get revenue out of this. One who is getting revenue, why would he leave it? Liquor and energy are two things that generate revenue. It is only the Central government which is worried about inflation and other things."

According to reports, both the Centre and state government earn huge amounts of tax from petroleum products. The Centre received INR 3.63 lakh crore through levy of excise duties on these products in 2021-22. The states earned INR 2.56 lakh crore via VAT/sales tax on these products. If petroleum products are brought under GST, states will lose flexibility to adjust sales tax or VAT rates as per their revenue needs.

Meanwhile, the minister also pointed out that, "When many countries are witnessing shortage of fuel and price rise, there is no shortage of fuel in India even in the remotest corners of the country."

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
News and Trends

Palette Brands, Clapingo, and Finsall Raise Early-Stage Funding

Here are the Indian startups that announced early-stage funding rounds.

Business News

Y Combinator Helped Launch Reddit, Airbnb and Dropbox. Here's What I Learned From Its Free Startup School.

The famed startup accelerator offers a free course on building a business — and answers five pressing questions for founders.

Science & Technology

Why We Shouldn't Fear AI in Education (and How to Use It Effectively)

Facing resistance to new technologies in the educational process is nothing new, and AI is no exception. Yet, this powerful tool is set to overcome these challenges and revolutionize education, preparing students and professionals for a future of unparalleled efficiency and personalized learning.

Growth Strategies

Can NEET Exam Be Manipulated? What We Know So Far

Around 1500 students from six centres complained that they were not given the full time for completing the exam, because of various reasons including distribution of the wrong question paper, torn OMR sheets, technical glitches, and delay in distribution of the OMR sheets.

Business News

A Former Corporate Lawyer Now Makes Six Figures on YouTube — Here's How She Does It

Here are the secrets to starting and growing a successful YouTube channel, according to a YouTuber with millions of subscribers.