Petrol Price Fall: As soon as it comes under the purview of GST- petrol can be cheaper by Rs 30

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Petrol Price In India

Petrol Price Fall: As soon as it comes under the purview of GST- petrol can be cheaper by Rs 30: For a long time there has been talk of bringing diesel-petrol under the purview of GST. However, this has not yet been agreed upon by the Center and the states, due to which it is still out of the purview of GST. The central government is making constant efforts to bring it under GST and it is also saying that this is not possible without the help of the states. Meanwhile, the price of petrol has reached close to Rs 108 in Mumbai. In such a situation, the Center is being targeted by the opposition regarding expensive diesel-petrol. At the same time, the general public is also troubled by the expensive prices. In such a situation, the question is also arising in the minds of the people that if diesel-petrol comes under the purview of GST, will the prices come down? If less, then how cheap will diesel-petrol become? Let’s know.

First know how much tax is levied on diesel-petrol now

At present, only about 60 percent tax is levied on diesel-petrol. In this, both the central government and the state government have a share. If we look at the price of diesel-petrol as of 16 September 2021, then it will be known that more than half goes into tax and dealer commission only. Diesel is currently priced at Rs 88.62 per liter in Delhi, out of which the rate of diesel is Rs 41.27 per liter, dealer commission of Rs 2.59 per liter and the rest Rs 43.86 as tax. On the other hand, if we talk about petrol, then its price in Delhi is Rs 101.19. Out of this, Rs 41.10 is spent on petrol and Rs 3.84 is dealer’s commission, while the rest Rs 56.25 is tax.

How much cheaper diesel-petrol will become if GST is implemented

If diesel-petrol also comes under the purview of GST, then the tax on it will be reduced. The maximum tax under GST is 28 percent, so it is expected that this too will attract a tax of 28 percent. In such a situation, the tax on diesel will be close to Rs 22-24 instead of Rs 43.86. At the same time, the tax on petrol will be Rs 25-27 instead of Rs 56.25. According to the report of ECOWRAP, which came some time back, after coming under the purview of GST, petrol will become cheaper by about Rs 30 and diesel by about Rs 20. That is, after this happens, petrol in Delhi will be around Rs 72 per liter and diesel will be around Rs 70 per liter.

Who will lose how much after diesel-petrol comes under GST

As soon as this happens, first of all the states will have to suffer heavy losses. Till now diesel-petrol has not come under the purview of GST because of this reason, because no state wants to make its loss. Most of the income of the states comes from the tax levied on diesel-petrol, so the states are opposing to bring petrol-diesel under the purview of GST. Due to this, the central government will also suffer a loss of about Rs 1 lakh crore, which is equal to 0.4 percent of the GDP.