New Delhi: There has been a long standing demand to bring petrol and diesel under the ambit of GST. If this happens, then there can be a big reduction in the prices of petrol and diesel in the country. Speaking to the media after the GST Council meeting, Finance Minister Nirmala Sitharaman, on the question of bringing petrol and diesel under GST (Goods and Services), said that the central government wants to bring petrol and diesel under the ambit of GST. Now the states have to take a decision in this regard and they should decide the rates together.
Know how much excise duty governments impose
Actually, excise duty is imposed on petrol and diesel by the central government. At the same time, VAT is collected by the state government. Apart from this, the final price comes by combining transportation cost and dealer commission. For example, right now the base price of petrol in Delhi is Rs 55.46. It attracts Rs 19.90 excise duty and Rs 15.39 VAT. After this, transportation cost and dealer commission of 20 paise and Rs 3.77 respectively are charged. In such a situation, the final price comes to Rs 94.72.
At the same time, the base price of diesel in Delhi is Rs 56.20. It is charged Rs 15.80 as excise duty and Rs 12.82 as VAT. After this, transportation cost and dealer commission of 22 paise and Rs 2.58 respectively are charged. In such a situation, the final price comes to Rs 87.62.
Prices will come down by up to Rs 20 when GST comes in its ambit
If petrol and diesel are brought under the ambit of GST, it will be very beneficial, because the maximum rate of GST is 28 percent. The base price of petrol in Delhi is Rs 55.46. If 28 percent GST is imposed on it, then the tax becomes Rs 15.58. If transportation cost and dealer commission of 20 paise and Rs 3.77 respectively are added, the final price becomes Rs 75.01. In such a situation, petrol can become cheaper by Rs 19.7 per liter.
