With the Union Budget just a couple of weeks away, the clamour for inclusion of petroleum products under the ambit of GST has gained momentum with experts spotlighting the move’s significance in reducing the prices for end users.
Petrol, diesel, ATF is out of the purview of GST and attracts taxes like central excise and state VAT. The different layers of taxation add to the overall cost burden and the industry stakeholders have asked for its inclusion in GST to claim input tax credit.
The move, if makes a headway in the Budget 2023, will be significant in giving a push to the logistics sector as it plays a pivotal role in accelerating India’s economic growth. It has major employment generation potential as well.
Fuel is a major spend for logistics industry and if fuel is included in the GST, it will help in reducing the overall costs and benefiting consumers. This will help in bringing down the inflation burden as well.