Petroleum products should not be included in GST, according to Nirmala Sitharaman, Energy News, ET EnergyWorld

Lucknow (Uttar Pradesh): Petroleum products will not be included in the goods and services tax (GST), Nirmala Sitharaman, Union finance minister, said on Friday.

The 45th GST Council meeting was held today in Lucknow under the chairmanship of Sitharaman.

Informing the media after the meeting, the Union Minister said: “There has been a lot of speculation as to whether petroleum products will be subject to the GST. High Court order suggesting that the matter be referred to the GST Council. The members of the GST Council have made it clear that they do not want petroleum products to be included in the GST. We will inform the High Court of Kerala that the matter has been discussed and the Council felt it was not the time to subject petroleum products to the GST.

Sitharaman announced a reduction in the rate of the GST on biodiesel, which is supplied to petroleum marketers for blending with diesel, from 12% to 5%.

Relieving carriers and exporters, the Minister of Finance said that “the national permit fees charged by states for the licensing of freight vehicles to operate throughout India or in contiguous states are exempt of the GST. TPS; this was granted due to the difficulties experienced by exporters in obtaining the refund of the input tax credit due to technical issues on the GST portal. Although the GST portal is currently stable, given the COVID19 pandemic, this exemption is extended for one year, so exporters do not suffer.

In addition, the rate of GST on fortified rice grains that can be used in programs such as the Integrated Child Development Services Program has been reduced from 18 percent to 5 percent.

“Specified renewable energy devices currently attract 5% GST, but all of their inputs are taxed at 18%. This reversal leads to the integration of the input tax credit (ITC) on input services and capital goods. be 12% for specified renewables. This will help domestic industry and Aatmanirbhar Bharat, especially at a time when India is looking to focus on renewable energy, ”she said.

The finance minister said that the IGST payable on the importation of aircraft or other imported goods on hire will now be exempt from double taxation.

“This will facilitate the domestic industry and the aviation sector. These will also allow the transfer of imported goods on hire without payment from IGST,” she added.

The GST on railway parts and locomotives and other rail parts will be reduced from 12% to 18% to correct the reverse duty structure.

Sitharaman said the GST on upgrade kits for vehicles used by people with disabilities in Divyang has been reduced to 5%.

“To prioritize skills development, training programs fully funded by central / state governments are already exempt from GST. Training programs for which the government covers 75% or more of the cost will now be exempt from the GST. The GST on pen parts is 18%. percent, while GST on certain types of pens is charged 12 percent. It was decided to correct this reversal by raising the rate on all pens and pen parts to 18 percent, ”she said. (ANI)

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