PETROL DIESEL PRICE FALL: The central government is thinking bringing petrol and diesel under the GST. If this happens, the prices of petrol and diesel can cut down by Rs 20.
Including petroleum products in GST will not only help oil companies reduce the tax paid on inputs but will also bring uniformity in tax on fuel across the country.
This means that petrol and diesel will be available at almost the same price across the country.
How will it benefit
In fact, in the 53rd meeting of the GST Council, Finance Minister Nirmala Sitharaman said that the central government is ready to bring petrol and diesel under the ambit of GST. Now the states will have to take a decision in this regard and decide its rates together.
Even if the GST rate is agreed upon and the highest tax of 28 percent is imposed on petroleum products, the common people will still get relief of Rs 19.71 per liter on petrol and Rs 12.83 per liter on diesel. However, this may affect the tax revenue of the governments.
How much can the price decrease
Petrol is currently being sold at Rs 94.72 per liter and diesel at Rs 87.62 per liter in Delhi. On this basis, after the implementation of GST, the price of petrol in Delhi will come down to Rs 75.01 and the price of diesel will be Rs 74.79 per liter.
How much tax do you pay
If you purchase 1L of petrol in Delhi, you need pay Rs 94.72. Out of this, a total of Rs 35.29 is taken as tax, which includes Rs 19.90 excise duty and Rs 15.39 VAT.
Excise duty goes to the central government, while VAT is taken by the state government. Similarly, buying a liter of diesel for Rs 87.62 attracts a total tax of Rs 28.62. Of this, the excise duty is Rs 15.80 and VAT is Rs 12.82.
Facility of amendment before filing GST
Now GST filing traders will get the option to amend the sales return form GSTR-1 before depositing monthly or quarterly tax.
However, GSTR-1A will have to be filed before filing the return in GSTR-3B for the relevant tax period.
The GST Council in its 53rd meeting had recommended a new optional facility through Form GSTR-1A to allow taxpayers to amend the details and add additional information in Form GSTR-1 for any tax period.
