GST council meeting tomorrow; Kerala, Maharashtra to oppose petrol, diesel GST
Kerala and Maharashtra governments said they will oppose any move to bring petrol and diesel under the GST regime, a proposal likely to be taken up in the 45th GST council meeting to be held on Friday in Lucknow.
Kerala Finance Minister K N Balagopal said the state will strongly oppose if there is any move to bring petrol and diesel under the GST regime. He said the fuel prices skyrocketed due to the huge increase of its cess by the Centre and if the Union Government reduces the cess, that will help in bringing down the prices of petrol and diesel. If petrol and diesel are brought under the GST regime, Kerala will lose ₹8,000 crore annually, the minister said.
Maharashtra deputy chief minister Ajit Pawar said the Centre is free to levy taxes but it should not touch areas that are under the state's jurisdiction. "If there is any move to do so, the state government will put forth its view in tomorrow's GST Council meeting," Pawar said. "We are yet to get ₹30,000 crore to 32,000 crore of our share of the GST refund. Apart from Excise and stamp duty, the largest pool of revenue for the state government is from the GST," Pawar who is also the finance minister of the state said.
In tomorrow's GST council meeting the tax rate of over four dozen items will be reviewed and reports said that tax concession on 11 Covid drugs is likely to be finalised.
Apart from a proposal to tax petrol and diesel under GST, a proposal to consider Zomato and Swiggy as restaurants and levy a 5% GST on their services would be taken up by the meeting.
The Council on Friday may also discuss the proposal of reducing GST from 12 per cent to 5 per cent to seven more drugs, including Itolizumab, Posaconazole, Infliximab, Bamlanivimab & Etesevimab, Casirivimab & Imdevimab, 2-Deoxy-D-Glucose and Favipiravir, till December 31, 2021.
(With agency inputs)