Hasmukh Adhia: Petrol prices unlikely to fall under GST

Hasmukh Adhia: Petrol prices unlikely to fall under GST

New Delhi [India], June 30: Contrary to the Centre’s take, Finance Secretary Hasmukh Adhia on Saturday said that it will be unlikely for petrol prices to fall even if petroleum products are brought into the ambit of Goods and Services Tax (GST).

In an exclusive interview to ANI on the completion of a year of the GST, Adhia said, “There is not much connection between petrol price and this (bringing petrol under the GST). If it is brought under GST and the revenue-neutral rate is applied, it will be unlikely for prices to fall. If the revenue-neutral rate isn’t applied it’ll be cheaper but the Centre and the states will have to sacrifice revenue.”

Adhia claimed that the Direct tax collection has also been increased due to the GST.

“The Direct tax collection has increased due to GST. Returns simplification is the thing that we need to work out and working on it. We will soon get the 1 lakh crore magical figure of collection per month,” he added.

In a major initiative to ease the tax system of the country, the Centre launched the GST on July 1, 2017. Under the GST regime, a regulated tax system was introduced in India.

During the interview, Adhia also made it clear that the demand to abolish the Integrated GST (IGST) has no logic. The statement comes after Delhi Deputy Chief Minister Manish Sisodia recently demanded to abolish the IGST, claiming “Rs 1.81 lakh crore has accumulated in the IGST fund but the money is lying idle and is causing economic loss.”

“The demand to abolish the Integrated GST (IGST) has no logic. We implemented this after having long discussions during the period from 2012 to 2016,” he said.

However, Union Minister of Petroleum and Natural Gas Dharmendra Pradhan has reiterated many times that petroleum products should be brought under GST so that consumers can get the benefit of price rationalisation.

“I appeal to the GST council that these products be included in the GST framework. Consumers should get the products on a rational price in the entire country,” Pradhan had said earlier.

The Union Minister made these remarks last month when the prices of diesel and petrol were at a four-year high.