Centre Ready To Bring Fuel Under GST, Says Petroleum Minister Hardeep Singh Puri also expressed the concern that it is unlikely that the states will agree to such a move as liquor and energy are revenue generating items for them

Petroleum and natural gas minister Hardeep Singh Puri, on Monday, said that the government is ready to bring petrol and diesel under the goods and service tax (GST) regime.

"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," said Puri, during an interaction with reporters.

The minister also expressed the concern that it is unlikely that the states will agree to such a move as liquor and energy are revenue generating items for them. "It is not difficult to understand that the 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."

According to reports, both the Centre and state government earn huge amounts of tax from petroleum products. The Centre received INR 3.63 lakh crore through levy of excise duties on these products in 2021-22. The states earned INR 2.56 lakh crore via VAT/sales tax on these products. If petroleum products are brought under GST, states will lose flexibility to adjust sales tax or VAT rates as per their revenue needs.

Meanwhile, the minister also pointed out that, "When many countries are witnessing shortage of fuel and price rise, there is no shortage of fuel in India even in the remotest corners of the country."