Karnataka government to object bringing fuel prices into GST net


Bengaluru, Sep 16 (IANS): The Karnataka government is all set to oppose the proposal to bring petrol and diesel into the ambit of Goods and Services Tax (GST) in the GST council meeting scheduled to be held on Friday in Lucknow, Uttar Pradesh.

The decision is being taken considering the fact that, if petrol and diesel are brought under GST, the state would face a revenue deficit up to Rs 700 crore.

"We need time to recover from the economic slowdown after Covid-19 lockdown for two years. Instead, we will demand the Central government to grant compensations for another two years. The situation of the state will be presented to the Union government and GST Council effectively," said Basavaraj Bommai, the Chief Minister of Karnataka.

C. Shikha, the Tax Commissioner of Karnataka, will attend the GST council meeting on Friday. She has been briefed to press for a longer compensation period and Karnataka's stand on bringing petrol and diesel into the GST net.

The Central government has asked the state government's opinion to bring fuel into the GST net. The proposal of the Central government is said to be for regulation of the prices of fuel in the country. It is believed that the new step will bring down the prices of fuel and reduce the burden on people.

The Centre's decision to bring fuel into the GST net is expected to bring petrol prices down from Rs 104 per litre in Karnataka to Rs 59 and the price of diesel will fall from Rs 94 to Rs 50 as both state and Centre will have to share only 28 per cent of taxes levied on fuel equally, say experts. It is expected to create a major financial deficit to the state. The Center will also lose out on revenue.

 

 

 

 

 

  

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  • KS Mayya, Mangalore/Bangalore

    Thu, Sep 16 2021

    And now the IAS cadre is talking. Bommai and BJP should prevent her from making such a representation with Centre if BJP is truly people friendly. BRING FUEL PRICE UNDER GST AND TAKE IT AWAY FROM THE CONTROL OF BABUS OF INDIVIDUAL STATES. Successive governments have gotten used to pry upon the weakness of common man, viz., alcohol and petrol. Let go Petrol, what is the problem? Guidance value was supposed to be brought down to realistic levels. Did it happen, answer is no. It can actually increase real estate transactions which can earn money for government. Once demand and supply dynamics come into play, they will anyway make money soon. Will they act with a mid long term view. Answer is no. Nobody is even talking about reducing taxes on vehicles and alcohol. With Petrol, everything will become cheap and it will drive consumption and production. Consequently, it will lead to higher tax collection. Are the IAS babus in favor? Answer is no. Because, they derive power out of permanency and have no incentive to let go what they are earning today in favor of a bright future. They do not care about common man. BJP, shame on you. You should put your foot down and make rule of elected representative supreme.

    DisAgree Agree [6] Reply Report Abuse

  • CHRIS, MANGALORE

    Thu, Sep 16 2021

    These Govt take so much where it goes i cannot find any development. Toll Tax, Registration, Tax and sort of other tax but No development . I hardly doubt fuel price will come down to from Rs 104 per litre in Karnataka to Rs 59 and the price of diesel will fall from Rs 94 to Rs 50 as both state It will be Miracle by the Govt

    DisAgree Agree [9] Reply Report Abuse

  • Shivraj, Bangalore

    Thu, Sep 16 2021

    The price rise in fuel is to cover up all sins / profligacy - While one can go by Shri Subramanian swamy's statements-BJP RAJYA SABHA MEMBER ---- his quote --- IN RAMAS LAND PETROL ABOVE Rs 100/ - INDIA - In SITA's - land - below - Rs 80 - NEPAL --- In SRILANKA -- Ravanas land - less than Rs 70/ The fact is the economy was sliding - even before COVID - Wasteful expenditures- CENTRAL VISTA - AIRCRAFTS - VIP 's - Rs 8000 / cr DEMONETISATION - wiped out several businesses etc --losses as more money came back -- 20 % black money not expected to come back-- Faulty GST - many businesses wiped out - various compliances and unable to get tax credit - Various disruptions and security issues and implementation of non essentials- GDP going down -- CAA -- NORTH EAST --KASHMIR - IMAGINE A WHOLE STATE LOCK DOWN ON A ENDLESS BASIS - (although now no more a state in true sense) Border areas - recent flare ups - Afghanistan write offs- PM WAS TRAVELLING ALL OVER THE WORLD PROMOTING - BEFORE COVID -- BANK NPA's - CRONY CAPITALISM - few benefitting - Experts not in Finance ministry - FORMER GOV RAJAN - ARAVIND SUBRAMANIAN - so many other experts sidelined -

    DisAgree [1] Agree [7] Reply Report Abuse

  • Vishnu Vardhan, Bajpe

    Thu, Sep 16 2021

    Why CM ? How long citizens have to pay ? Why you don't want the citizens to be benefited ? Kindly note the citizens are paying :- Property tax, Water tax, GST , Income tax, huge fuel tax!, in return your goverment has given us Bad roads, unplanned flyovers (example pumpwell ) , Demolition of unplanned structures, salary to lethargic and corrupt officials , Maintenance of MLA , MLC and connected people. This clearly shows BJP is against poor people and their policies only meant for rich class . Vishnu Vardhan(BAjpe)

    DisAgree [1] Agree [7] Reply Report Abuse

  • Jossey Saldanha, Thane

    Thu, Sep 16 2021

    Include Gas, Diesel, Petrol & Alcohol ...

    DisAgree Agree [8] Reply Report Abuse

  • Herman, Mulki / Mumbai

    Thu, Sep 16 2021

    If petrol comes under GST regime, it will be reprieve for Industry and general public. They should do it fast or other wise the day will come, the demand for fossil fuel will go down as most will turn to Electric Vehicle

    DisAgree Agree [7] Reply Report Abuse

  • Valerian DSouza, Udupi/ Mumbai

    Thu, Sep 16 2021

    GST was enacted itself to subsume all indirect taxes into its fold for simplification of tax Laws. Why then fuel merger into GST should be objected? Contrary remaining indirect taxes such as stamp duty, custom duty and tax on liquor etc. also should be subsumed under GST. There should be only one Registration for all over Indian branches. What State should demand is, their share of Taxes should directly come into state treasury. State shouldn't have to beg from centre of their share. Indirect Taxes assessment authority should be of state, not of Centre. Only Income Tax assessment should be under centre. That's real simplification.

    DisAgree [1] Agree [4] Reply Report Abuse

  • Flavian, Mangalore/Kuwait

    Thu, Sep 16 2021

    @ S.F.H, Indian "If they bring down the petrol and deisel price to 50's as mentioned in last paragraph...My vote is for BJP in next elections" Please do not get fooled. These types of manipulations are election gimmicks. As the elections are nearing strategy works in favour of voters. Then what goes around comes around. No consistency at all. Al temporary measures.

    DisAgree [3] Agree [22] Reply Report Abuse

  • AD, Mangalore

    Thu, Sep 16 2021

    If you give saving to the people by bringing petrol under GST there will be better development of state than Govt. getting additional revenue through levies on petrol

    DisAgree Agree [9] Reply Report Abuse

  • Flavian, Mangalore/Kuwait

    Thu, Sep 16 2021

    Next elections preparation ? Nothing is impossible ! Voters be sensible.

    DisAgree Agree [17] Reply Report Abuse

  • Rajan, Mangalore

    Thu, Sep 16 2021

    The Centre with great fanfare introduced GST with freedom @ midnight session - ONE NATION ONE TAX -etc Later observed various issues - GST slabs - input tax credits - etc etc - Now further CENTRE not kept its promise of transfers ---- GST dues pending - states made to borrow to adjust for GST dues etc - This is not in the spirit of HONOURED sharing and in the first place how states came on board - was that honored sharing --a given -- Further Centre has added CESS - THIS CESS IS NOT SHAREABLE - EVEN IN FUEL THERE IS CESS - They can easily reduce/ remove CESS_ As per experts -- reduce burden by Rs 5 / approx -- without tinkering on GST -- For STATES ALCOHOL / FUEL - taxes are the only major contributors - Tax kitty - if they forego this then serious debt trap- Especially non BJP states - ----------------------- Possibly by design - BJP wants in future ONE NATION ONE PARTY --

    DisAgree Agree [5] Reply Report Abuse

  • S.F.H, Indian

    Thu, Sep 16 2021

    If they bring down the petrol and deisel price to 50's as mentioned in last paragraph...My vote is for BJP in next elections.

    DisAgree [2] Agree [9] Reply Report Abuse

  • Ozy, Surathkal

    Thu, Sep 16 2021

    People of KARNATAKA deserve, pay from nose and bleed. What development, luxury cars for ministers.

    DisAgree Agree [11] Reply Report Abuse

  • KRISHNA SHENOY, moodbidri/mumbai

    Thu, Sep 16 2021

    AND THESE ANDH BHAKTS USE TO SAY IN 2013 IF MODI COME TO POWER THERE WILL NOT BE TAX AT ALL ......FOOLISH AND SAD TO KNOW THIS NOW ....

    DisAgree [3] Agree [13] Reply Report Abuse

  • CHRIS, BELMAN,JANTRA

    Thu, Sep 16 2021

    If they bring this it would be great for the general public and Consumers

    DisAgree [1] Agree [26] Reply Report Abuse

  • Langoolacharya., Belman / Washington, DC.

    Thu, Sep 16 2021

    Jantrada Pili, These 'Putgoshi' politicians run Government to their selfish goals....they care two hoots for peopleand their welfare.... I would suggest People should join together and defeat 3 Corrupt parties of Karnataka....CONgress-BJPeee-JDS and bring in a non-corrupt party like AAP... When people sell their votes for 500 Rs notes....this is not going to happen....So enjoy the rule of these good for nothing morons....proving Winston Churchill's prophecy RIGHT every minute of the day... ...Tak...Takk...

    DisAgree [1] Agree [17] Reply Report Abuse

  • Ambareesh, Bajpe

    Thu, Sep 16 2021

    Good thought from Revenue Minister Ashok, Karnataka need development and money bag

    DisAgree [25] Agree [4] Reply Report Abuse

  • CHRIS PEREIRA, MANGALORE

    Thu, Sep 16 2021

    Nothing will happen. Only talk as both center and State need revenue. Only drama and talk. if they have to do they would have done this

    DisAgree [1] Agree [38] Reply Report Abuse

  • Brian, Mlore

    Thu, Sep 16 2021

    Road tax is highest in karnataka.cut diwn the tax and then pritest.

    DisAgree Agree [1] Reply Report Abuse

  • Golibajje, Mangalore

    Thu, Sep 16 2021

    This must be a slap on all the blind bhakts faces. Have some shame atleast now and wake up,don't be blinded by your hatredness. Have some common sense and shame,the masks are off.

    DisAgree [7] Agree [48] Reply Report Abuse

  • Sanjay, Hebri

    Thu, Sep 16 2021

    What happened? Golibaje karti hoitha😂😂😂

    DisAgree [4] Agree [2] Reply Report Abuse

  • Shetty, Kudla

    Thu, Sep 16 2021

    You can wake up those who are really sleeping, but cant wake them up who are pretending to be sleeping.

    DisAgree [2] Agree [15] Reply Report Abuse

  • Sanjay, Hebri

    Thu, Sep 16 2021

    Shettre, for us to vote, bjp just needs to control peacefuls from destroying India. Price, employment pura bokka tooka

    DisAgree [7] Agree [4] Reply Report Abuse

  • Pili, Mangalore

    Thu, Sep 16 2021

    Abolish tax not 100 percent but partial so that petrol price is within 70 and dieael 60 per liter. To cover the deficit tax politicians income and their other sources 25 percent. All state and central financial problems will be solved and janata janardan will bless the government.

    DisAgree Agree [31] Reply Report Abuse

  • Francis Lewis, Sasthan

    Thu, Sep 16 2021

    Stop buying Brand New Cars and cut all their allowances. Petrol and Diesel should come under GST so that Common Person can survive

    DisAgree Agree [6] Reply Report Abuse


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