Modi govt ready to bring petrol under GST but states unlikely to agree, says Petroleum minister Hardeep Singh Puri

15-Nov-2022 Economic Times GST, Goods & Service Tax, Petroleum , Minister , Hardeep Singh Puri, Ready , Bring , Fuel 485 Views

Modi govt ready to bring petrol under GST but states unlikely to agree, says Petroleum minister Hardeep Singh Puri

Modi govt is ready to bring fuel under GST but the states — for whom fuel and liquor are major revenue generators — are unlikely to agree to such a proposal, Union Minister Hardeep Singh Puri said on Monday.

"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," the Petroleum and Natural Gas minister told reporters in Srinagar.

According to the minister, it is only the Central government that is worried about inflation.

Puri cited a recent Kerala High Court suggestion to drive home his point. The court had suggested that the issue be placed before the GST Council for discussion, but the Kerala finance minister didn't agree to it.

"As far as GST is concerned, your wishes and my wishes apart, we are in a cooperative federal system," he said.

As regards fuel prices, the minister said India has seen one of the lowest rise in prices in the past one year. US 
fuel prices rose by 43 per cent in one year but India only saw a two per cent rise, he added.

Puri referenced Morgan Stanley and IMF to underline Indian economy's resilience amid a global turmoil. "If there is a bright spot anywhere in the world, it's India. It's not me saying it, it is Morgan Stanley. It's the managing director of IMF saying this," he observed.

Steps taken by the Centre — including a reduction in excise duty — have helped India insulate itself from sharp rise in fuel prices, Puri noted.

"There are some countries in our neighbourhood which have fuel shortages, and prices are exorbitant. But we did not have shortages even in the remote areas of the country. It has been a very strong navigation at the level of the Centre and the states. What will happen in future it is difficult to say," PTI quoted Puri as saying.

"During Covid in March 2020, the price of an oil barrel had come down to $19.56 which is now $96. I don't answer hypothetical questions but the efforts of the Central government will be that prices remain stable," he said.

- Economic Times

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