Clamour grows to bring petroleum under GST; Haseeb Drabu fires first salvo

Clamour grows to bring petroleum under GST; Haseeb Drabu fires first salvo

Clamour grows to bring petroleum under GST; Haseeb Drabu fires first salvo

Srinagar Now that the GST rate to more than 500 services and 1,200 properties were finalized, the clamor of oil products in net tax and service (GST) goods increases, the first salvo being fired by Jammu and Kashmir.
While products such as kerosene, naphtha and LPG will be under the control of the GST, five elements – crude oil, natural gas, aviation fuel, diesel and gasoline – were excluded from the basket for the initial years. In an interview with PTI, J & K Finance Minister Haseeb Drabu said that the five excluded petroleum products should be subject to GST “if not, what is the purpose of” the biggest breath of the system National tax since independence.
“Why dilute the structure, if they move and create an architecture, do not destroy it by doing all these stupid things (except products).”
These comments echo the opinions of various experts who want these products included in the GST from the outset.
Drabu last week hosted the 14th meeting of the GST Council, which decided the tax rate for a large number of goods and services, said the deployment of the new indirect tax scheme takes place in the last towers . “I believe July 1 (for GST deployment) is achievable,” he said, adding that the double information technology problem that would support the administration of the new tax system and awareness taxpayers must be resolved.
“We went from an evaluation to the self-assessment system, this is a huge change, so knowledge is necessary.” Information technology is going to have problems, I mean any system will have problems. Is feasible, “he said.
He said that there was insufficient time under the constitutional amendment passed by Parliament and ratified by at least half of the state legislatures, planning to move to the new tax system in mid-September. “You must have a deadline. You do not have enough time, since, on September 18, you have a constitutional crisis.”
The five petroleum products were kept out of the GST because they are considered as cash containers, giving both the Center and most of its tax revenue. But keeping them off has created compliance issues, including the tax credit adopted for the entries. For example, a production of refinery diesel and gasoline would pay GST for the purchase of equipment, machinery and services, but this tax can not be deducted from excise taxes and VAT levied on gasoline and diesel.
Drabu said that the GST is perhaps the most important fiscal reform after independence and revolutionize the entire indirect tax system.
During the two-day meeting, the GST Council has set rates for more than 500 services and goods in 1200 with the integration of the overall rate of 5, 12, 18 and 28 percent of the GST. It was the culmination of a ten-year effort to simplify the tax system in India and to unify the country of 1.3 billion people into a common market with a single national sales tax.
Drabu said that these tax rates harmonize with the new emerging consumer basket of new India.
“And I said one of the things that the Council should now recommend asking the consumer price index (CPI) to a new survey and get a new basket of goods, and you will see real inflation.” The link between GST and inflation could actually become much safer and could alleviate all, “he said.
He said tax buoyancy would offset any loss of GST revenue. Buoyancy has been said, will be launched in the second or third or fourth year could be when there are increases in efficiency.

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