Petrol and diesel should come under GST, says industry body Assocham

• ASSOCHAM (Associated Chambers of Commerce and Industry) of India has suggested to rope in Petroleum products into the Goods & Services Tax (GST) net.
  
• The Centre earned a whopping ₹2.4 trillion as excise duty from the petroleum sector in the 2017-18 fiscal.
  
• The chamber also suggested relaxation on GST to restaurants and real estate sectors.

Petroleum products should be brought under the Goods & Services Tax (GST) ambit, according to industry body ASSOCHAM (Associated Chambers of Commerce and Industry).

''The two-year period for keeping petroleum products outside GST is almost over. Also, these products being outside GST leads to increase in cost for businesses. Therefore, these products should be brought under the GST," Asscham’s memorandum to the GST Council said.

The industry body said that this move will help streamline businesses and seamless credit of Input Tax Credit (ITC). Some of the many taxes that petroleum products now attract includes, local and state taxes such as stamp duty, vehicle tax, mandi tax and road tax. Bringing it under GST can minimize the surging effect of taxes.

In return, Assocham wants some relaxation on GST to restaurants and real estate players. It also sought clarity on the tax imposed on international transactions.

The Centre collected a large chunk of its taxes from petrol and diesel due to the increasing rates during November 2014 to January 2016 period. It earned nearly ₹2.4 trillion as excise duty from the petroleum sector in 2017-18 fiscal.