Petrol & Diesel Won't Be Included Under GST [Quick Report]

Petrol & Diesel Won't Be Included Under GST [Quick Report]

The most awaited decision of putting petrol and diesel under the GST slab may not be implemented anytime soon in India. The report comes after both central and state govt showed fear of losing a considerable amount of revenue and did not favor the one nation, one tax policy. GST was implemented in 2017 from July 1, completing one full year of ups and downs last month. Many industries received benefits from its implementation while others showed how they were badly hit by the change in tax policy. GST basically combines value added tax, service tax and excise duty, dividing products into four slabs of 5%, 12%, 18% and 28%. Most everyday products fall in the first two segments while availing services from most sources are taxed under the 18% slab. Automobile sector falls under the 28% segment, further getting higher tax rates by including additional cess on these base values. The biggest example is the above 4-meter car segment, paying 53% of total tax with 25% of cess on the base value. Most experts were believing the fact that the government will tax petrol and diesel under the 28% slab with a bigger cess than that seen on the car market. One such example of huge taxation is the tobacco industry, paying 160% of cess over the regular 28% taxation. Presently, petroleum products and alcohol are the only industries that are out of the GST regime. The highest amount of VAT charged on petrol is in Mumbai whereas all UTs have the lowest taxation on petroleum products. GST was a brilliant idea of bringing things under one umbrella but, the application of cess on the ground values have disturbed many industries. For some, the values remain identical as government played safe by putting a similar amount of GST as the total of earlier taxes, which also includes cess.

Related Questions and Answers

Most Popular Answers for Diesel
Which is better among Volkswagen Cross Polo and Toyota Etios cross in diesel?
2023-01-24 03:17:48 AM
The Volkswagen Cross Polo and Toyota Etios Cross are both great cars, but when it comes to diesel engines, the Volkswagen Cross Polo has a more powerful engine, making it a better choice for those who need a powerful engine. Furthermore, the Volkswagen Cross Polo has more features, such as cruise control, a panoramic sunroof, and an upgraded infotainment system. 
On the other hand, the Toyota Etios Cross has a more efficient engine, making it a better choice for those who are looking for a more economical option. Additionally, the Toyota Etios Cross is also equipped with a rear parking camera, which is an added bonus. Ultimately, both cars are great options, but the Volkswagen Cross Polo is the better choice for those who need more power and features.
What is the mileage of a diesel engine for Maruti Jimny ?
2023-01-14 04:59:08 AM

We believe that Maruti Suzuki will likely not be launching the Jimny with diesel engine options as they are discontinuing diesel engines from 2020. The only way to verify this is to wait for Maruti Suzuki to officially reveal the Jimny for India. We expect the Jimny to offer a petrol engine option as this is now the new trend among automobile manufacturers.

Is Hyundai i20 Diesel car good for hills?
2023-01-13 02:36:30 AM

The Hyundai i20 is a great diesel car for hills, thanks to its powerful engine and advanced suspension system. It offers good stability and grip on winding roads and its torque is more than enough to climb steep inclines. In addition, the car is equipped with hill-start assist, which helps in starting the car uphill without losing control. Thus, the Hyundai i20 is a great diesel car for hills.

What is the reserve fuel capacity of Hyundai i20 Diesel Sportz?
2023-01-13 02:35:01 AM

The reserve fuel capacity of the Hyundai i20 Diesel Sportz is 3-4 liters. This means that even if the fuel tank is completely empty, you can still expect 10 liters of fuel to be available for the engine. This is the capacity of the reserve tank, which is located at the bottom of the fuel tank.

Is Tata Nano EV available in diesel version in India?
2023-01-03 04:25:00 AM
The Tata Nano EV is not available in a diesel version in India. However, the Tata Nano petrol is available in the country. It has a 1.2-litre petrol engine and comes with a 5-speed manual transmission. The Nano petrol is capable of giving a mileage of 21.9 km/l.