Finance Minister Arun Jaitley said that Goods and Service Tax (GST) is ruled out from immediate levy as most states are not in favouring of including petrol and diesel in the new indirect tax system.
When GST was rolled out on July 1, real estate, crude oil, jet fuel, Natural gas, petrol, and diesel were out of purview. These products continued to attract central excise and VAT. These five products were kept out of GST as they are considered cash cows as they make up for a bulk of tax revenues for both states and well as the Centre.
"So far the mood of states (most of the states) is not in favour of including it (in GST) at the moment. But I am sure as the GST experience moves on, I think, natural gas, real estate -- these are areas which are to be brought in and then probably at some stage we will keep trying for petrol, diesel, and potable alcohol," said Arun Jaitley.