‘GST Council meet may take up inclusion of natural gas’

The Goods and Services Tax Council is likely to take up the possible inclusion of natural gas in the indirect tax regime during its next meeting, according to a senior official in the Council.

“Petroleum is a considerably larger source for revenues not only for [the] Centre but States also and on [the] natural gas front, there is some consensus for bringing it into GST ambit and therefore, it could be the first petroleum product that could come within the GST network,” Dheeraj Rastogi, Joint Secretary, GST Council, said while addressing a PHD Chambers of Commerce and Industry event.

“[We are] going to propose inclusion of natural gas within the GST purview on an experimental basis in the forthcoming GST Council meeting,” Mr. Rastogi added, saying that this could be soon followed by the inclusion of aviation turbine fuel (ATF). Mr. Rastogi, however, did not specify the tax bracket for natural gas if it was included in GST.

Currently, petroleum crude, motor spirit (petrol), high speed diesel, natural gas, and ATF have been kept out of GST. However, several officials, including Petroleum Minister Dharmendra Pradhan and Indian Oil Corporation chairman Sanjiv Singh, had repeatedly said that petroleum products and natural gas should be brought under the unified indirect tax regime.

Advance ruling

The Joint Secretary also touched upon the issue of advance ruling, acknowledging the problems being caused by disparate and often, contradictory rulings by different States on the same issues. He said a policy decision was likely to be taken on setting up a centralised advance ruling authority rather than leaving the redressal to State authorities.

Separately, Minister of State for Finance Shiv Pratap Shukla reportedly said the next Council meeting would also look into further rationalisation of tax rates.

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Printable version | Sep 15, 2020 4:00:02 PM |

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