Petroleum ministry for uniform taxation on petroleum products across the country

• Posted in OilGas
• on September 12, 2016
• No Comments.

In an attempt to help benefit consumers, the ministry of petroleum and natural gas is working on a uniform tax structure for petroleum products across the country. This comes in the backdrop of the Constitution Amendment Bill to the goods and services tax (GST) receiving the President’s nod. First conceptualised in 2006 and dubbed as the biggest tax reform since Independence, GST will subsume all other indirect taxes.

However, petroleum and petroleum products shall only be subject to GST later depending on the GST Council’s recommendation. The GST Council will comprise of state finance ministers and is expected to be in place shortly to decide the tax rate. The petroleum ministry is working towards a uniform taxation regime for petroleum and petroleum products, confirmed two government officials requesting anonymity.

At present, different petroleum products are taxed differently across states. Given the huge variance in the value-added tax (VAT) on petroleum products across the states, the petroleum ministry has been advocating for uniformity in taxes.
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