In the last 8 days, the prices of petrol and diesel have increased 3 times. After which petrol prices have crossed Rs 100 in many cities. Whereas in Delhi, on May 23, petrol prices reached Rs 99.51 per liter. Amidst the rising prices of petrol and diesel, the Chamber of Trade and Industry has demanded to bring it under the ambit of GST. Chamber of Trade and Industry Chairman Brijesh Goyal has written a letter to Prime Minister Narendra Modi on this issue.
Brijesh Goyal has appealed to the Central Government to immediately include petrol and diesel under the ambit of GST. So that people can get relief from this huge inflation.
Petrol and diesel are facing heavy tax burden.
According to Chamber of Trade and Industry Chairman Brijesh Goyal, petrol and diesel are facing heavy tax burden. He says that if we talk about Delhi only, according to the data till May 22, the actual price of petrol in Delhi was Rs 66.29, excise duty on it was Rs 11.90 and VAT was Rs 16.03, while the dealer’s margin was Rs 4.42. That means Rs 32 to 33 are the burden of only tax and margin. Talking about diesel, its actual price in Delhi is Rs 67.36, on which excise duty was Rs 7.80 and VAT was Rs 13.39, while the dealer margin was Rs 3.03. That means here also Rs 24 only for tax and margin. If GST is imposed on petrol and diesel, all these taxes will be abolished and there will be only one tax.
Prices may reduce by Rs 22
If GST is imposed on petrol and diesel, then Rs 22 can be saved on petrol alone. Meaning, if the price of petrol is close to Rs 100 per liter now, it may come down to Rs 78. Let us now explain its calculation to you. The price of petrol in Delhi has increased to Rs 99.51 per liter on May 23. In this, the actual price of petrol was only Rs 66.29. On top of this, an excise duty of Rs 11.90 per liter is imposed by the Centre, while the Delhi government levies VAT of Rs 16.03 and the dealer is also given a commission margin of Rs 4.42 per litre.
- Current price of petrol in Delhi – Rs 99.51
- Central government tax – Rs 11.90
- Delhi Government VAT – Rs 16.03
- Dealer’s margin – Rs 4.42
Under this calculation, there is only tax of around Rs 28 in the price of Rs 99.51 per liter petrol. Both these taxes may be abolished with the implementation of GST. Even if the dealer’s margin is not removed, the price of one liter petrol can reduce by about Rs 27.93 due to the abolition of tax, which means petrol of Rs 99.51 per liter can become cheaper by about Rs 28. If petrol is brought under the ambit of 18 percent GST, then the price of petrol without tax in Delhi is Rs 66.29 per litre. By imposing 18 percent GST on this, the total tax will be Rs 11.93 and then the price of petrol will become Rs 78.22 per litre, i.e. the price of one liter will reduce by about Rs 22.
Petrol and diesel come under the purview of GST
Brijesh Goyal has said in a letter to PM Modi that when GST was implemented in 2017, there was talk of One Nation One Tax and it was said that there will be uniform tax and uniform rate on everything in the country, but all the states are arbitrarily charging VAT on petrol and diesel as per their own. Due to this, the rates of petrol and diesel are different in every state. Due to this, the concept of One Nation One Tax is also being attacked. In such a situation, excise duty and VAT on petrol and diesel should be abolished and brought under the purview of GST. This will not only make the rates of petrol and diesel uniform across the country but will also reduce the rates of petrol and diesel.
How much is the tax now?
Before calculating the benefits of bringing petrol and diesel under the ambit of GST, let us understand how much tax is levied on both at present. First let’s talk about petrol. The price of petrol in Delhi has increased to Rs 99.51 per liter on May 23. In this, the actual price of petrol was only Rs 66.29. On top of this, an excise duty of Rs 11.90 per liter is imposed by the Centre, while the Delhi government levies VAT of Rs 16.03 and the dealer is also given a commission margin of Rs 4.42 per litre.
What is the benefit of imposing 18 percent GST?
Now coming to the real issue, how much will the common man benefit if petrol and diesel are brought under the ambit of GST? The answer to this is given by 2 slabs of GST. If petrol is brought under the ambit of 18 percent GST, then the price of petrol without tax in Delhi is Rs 66.29 per litre. By imposing 18 percent GST on this, the total tax will be Rs 11.93 and then the price of petrol will become Rs 78.22 per litre.
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