Oil Minister Dharmendra Pradhan on Monday categorically stated that the answer to the growing fuel prices lie in bringing petroleum products under the Goods and Services Tax (GST) regime.
Speaking to ANI, he said, "The only solution to it is GST, which should cover all petroleum products. We are sincerely appealing to the state government and GST council to look into this issue. Petrol and diesel should come under GST in that way the infirmity of tax should be equally shared. Also this will help with tax predictability".
This statement came a day after Finance Minister Arun Jaitley pointed out saying, "In Delhi, the petrol price is Rs. 70 a litre whereas in Mumbai it is Rs. 80. It could be as low as Rs. 38.10 in both the cities if it were under the GST regime attracting a 12 percent tax".
Union Minister also asserted that the rise in prices of petrol was due to several factors.
As of now, petrol prices contain other elements like Centre-imposed excise duty, state-imposed VAT and dealer's commission. So if fuel is brought under GST, petrol price can come down to Rs. 38 per litre from Rs. 70 at 12 percent GST.