GST Council Meeting: 2 days meeting in Chandigarh from today, discussion on bringing petrol and diesel under GST might be possible

The two-day meeting of the GST Council, the apex body of Goods and Services Tax ie GST, is starting in Chandigarh from today. Finance Minister Nirmala Sitharaman will chair this meeting held on June 28-29, in which a decision can be taken on reducing and increasing the rates of many products and services, including changes in the slab of GST. People are hopeful that this time apart from petrol and diesel, a decision should be taken on bringing liquor under GST, but so far the situation is not clear on this.

The GST Council can be considered to bring petroleum products under the purview of GST. Before the meeting of the GST Council, the chairman of the Economic Advisory Council to the PM, Vivek Debroy, has expressed the possibility of including petrol and diesel in the purview of GST. Vivek Debroyen has advocated that bringing petrol and diesel under the purview of GST will make it possible to curb rising inflation.

During the debate on Finance Bill 2021, BJP MP Sushil Modi had said that this would collectively cause an annual loss of 2 lakh crores to the states whereas Petroleum Minister Hardeep Singh Puri says that if petrol and diesel are brought under the purview of GST, then the central government will be happy.

The full possibility of changes in the tax rates of many products and services is being expressed in the GST meeting. In a recent meeting of the Group of Ministers, besides online gaming, horse racing and casinos, considering them as harmful services, have recommended 28 percent GST on them. Apart from this, staying in a budget hotel can also be expensive. The GST Council may increase the GST rates on the cost of hospital stay, water pumps and household utensils.