Centre Set To Bring Fuel Under GST: Petroleum Minister Hardeep Puri

The union government is ready to bring petrol and diesel under the GST regime, Petroleum and Natural Gas Minister Hardeep Singh Puri stated on November 14. However, the state governments are unlikely to agree to such a move, because liquor and energy are revenue generating items for them.

According to Puri, "For bringing the petrol and diesel under the GST, the States have to agree. If the States make the move, we are ready. We have been ready all along. That's my understanding. It is another issue how to implement it. That question should be addressed to the finance minister. It is not difficult to understand, they (States) get revenue out of this. One who is getting revenue, why would he leave it? Liquor and energy are two things that generate revenue. It is only the Central government which is worried about inflation and other things."

Puri, yesterday also mentioned that the Kerala High Court had suggested that the issue be placed before the Goods and Services Tax (GST) Council for discussion at its last meeting in Lucknow. He added, "The Finance Minister of that State did not agree. As far as GST is concerned, your wishes and my wishes apart, we are in a cooperative federal system."

"There are some countries in our neighbourhood which have fuel shortages, and prices are exorbitant. But we did not have shortages even in the remote areas of the country. It has been a very strong navigation at the level of the Centre and the states. What will happen in future it is difficult to say. During Covid in March 2020, the price of an oil barrel had come down to $19. 56 which is now $96. I don't answer hypothetical questions but the efforts of the Central government will be that prices remain stable," he added commenting on the fuel price.