Hardeep Singh Puri-led Oil Ministry has made a fresh push to bring natural gas under Goods and Services Tax (GST), sources told exclusively to ET Now. Oil Ministry approached the finance ministry again amid a reduction in APM (Administered Price Mechanism) gas supply to CGD (City Gas Distribution) companies.
Currently, ATF and natural gas are out of radar of GST regime and have been put to state-level taxes like excise duty and value-added tax (VAT).
Indian government has cut APM gas supply by up to 20% to CGD companies for two consecutive months. For that purpose, CGD companies approach the government for the long-term solution.
Oil Ministry is seeking the inclusion of natural gas under GST to ensure affordability. Active deliberations are taking place with all stakeholders.
FM working to propose GST council
Finance Ministry is working on the proposal to present it before the GST council. Major states, including Maharashtra and Gujarat, have agreed on the proposal. Oil Ministry has provided additional data to the Finance Ministry on the impact.
Various meeting have been held over the last 2-3 months for consideration of the proposal of taking natural gas under GST.
The government is planning to include Natural Gas and ATF under GST in a graded manner.
Five petroleum products out of regime
As of now, VAT on natural gas is ranging from 14% to 24%. Moreover, VAT on ATF varies from 5% to 18%.
The Goods & Service Tax regime, which was introduced in 2017, excluded five petroleum products: crude oil, natural gas, petrol, diesel, and jet fuel.
Exemption of GST on term life insurance and health premiums likely considered
Previously, ET Now had reported that the key proposals include exempting GST on individual term life insurance and health premiums for Senior citizen & coverage upto 5 lakh
The next Goods and Services Tax (GST) Council, which is 55th, is set to be held in last week of December in Rajasthan.
A Group of Ministers (GoM) has already recommended these changes. “The new growth data in health insurance strengthens the case for GST reduction on premiums.”
Source : Economic Times
