Petroleum products should be under GST: PHD Chamber

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Hailing the GST Council’s choice to Hailing the GST Council’s decision to reduce tax rates on several items and services, President of PHD Chamber of Commerce and Industry, Rajeev Talwar on Sunday urged the government and the council to consider bringing petroleum products under the ambit of Goods and Services Tax (GST).

“Considering the volatility in the international crude oil prices, petroleum products should also be considered under the GST to rationalise the impact of indirect taxes by subsuming VAT (Value Added Tax) and excise duties in GST,” the industry body said in a statement quoting Talwar. Currently, petrol and diesel are outside the purview of GST, and attract excise duty and VAT among other levies. Sector experts say, bringing the two under GST would lower their price, which this year surged to record levels, before taking a downturn in mid-October.

“Continuous reforms in the policy environment would pave the way for higher, sustainable and strong economic growth trajectory going forward,” he added.

He also noted that a realistic, pragmatic and prudent policy approach would make India a tax-compliant country in the next few years.

“Reduction in tax rates on the items from TVs to movies tickets, marble rubble, frozen and preserved vegetables, among others is a great relief for every segment of the society,” he said.

The GST Council in its 31st meeting on Saturday reduced the tax rates of 17 items and six services, including computer monitors, TV screens, video games, lithium-ion power banks, retreaded tyres, wheelchairs and cinema tickets.

With the latest rate cut announcement, only 28 items including cement, luxury and ‘sin’ goods remain in the highest tax bracket of 28 per cent.

“The shift in items from higher tax slabs to lower tax slabs is the visible intent of the government to constantly reforming the taxation system to make it more and more simple,” Talwar said. on a few things and administrations, President of PHD Chamber of Commerce and Industry, Rajeev Talwar on Sunday asked the legislature and the board to consider bringing oil based goods under the ambit of Goods and Services Tax (GST).

“Considering the unpredictability in the worldwide raw petroleum costs, oil based commodities ought to likewise be considered under the GST to justify the effect of aberrant assessments by subsuming VAT (Value Added Tax) and extract obligations in GST,” the industry body said in an announcement citing Talwar. At present, petroleum and diesel are outside the domain of GST, and draw in extract obligation and VAT among different tolls. Area specialists state, bringing the two under GST would bring down their value, which this year flooded to record levels, before taking a downturn in mid-October.

“Ceaseless changes in the arrangement condition would make ready for higher, manageable and solid monetary development direction going ahead,” he included.

He likewise noticed that a practical, even minded and judicious strategy approach would make India an expense agreeable nation in the following couple of years.

“Decrease in assessment rates on the things from TVs to motion pictures tickets, marble rubble, solidified and protected vegetables, among others is an incredible help for each section of the general public,” he said.

The GST Council in its 31st gathering on Saturday diminished the expense rates of 17 things and six administrations, including PC screens, TV screens, computer games, lithium-particle control banks, retreaded tires, wheelchairs and film tickets.

With the most recent rate cut declaration, just 28 things including concrete, extravagance and ‘sin’ products stay in the most astounding assessment section of 28 percent.

“The move in things from higher duty sections to bring down assessment chunks is the unmistakable expectation of the administration to always changing the tax collection framework to make it increasingly straightforward,” Talwar said.

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