Kerala

HC dissatisfied with GST Council reply

A Division Bench of the Kerala High Court on Wednesday expressed its dissatisfaction with the reasons given by the Goods and Services Tax (GST) Council for not bringing petrol and diesel under the purview of GST.

“We are not satisfied with the reasons. There should be some discussion and genuine reasons as to why petroleum products cannot be brought under the GST regime,” the Bench led by Chief Justice S. Manikumar, while dealing with a petition seeking to include the fuels in the GST, observed.

When the petition came up for hearing, counsel for the Central Board of Direct Taxes and Customs furnished a letter dated November 29, 2021 from the Director of the Goods and Services Tax Council stating that the petroleum products could not be brought under the GST regime.

The court observed that three issues seemed to have been considered by the council with respect to the issue of bringing the petroleum products under the GST regime at the 45th council meeting.

The reasons for not including the fuels in GST, it seems, were high revenue implications, difficulty in bringing petroleum products under the GST regime during pandemic times, and the need for larger deliberations.

The court said the “pandemic period cannot be cited as a reason. It is well known that even during pandemic period, several decisions were taken involving revenue after deliberations”.

The court directed the Central Board of Direct Taxes and Customs to file a detailed statement after considering the court’s observations.


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Printable version | Jan 25, 2022 5:46:33 AM | https://www.thehindu.com/news/national/kerala/hc-dissatisfied-with-gst-council-reply/article37791975.ece

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