Petroleum Products Under GST: A Trade-Off Between Government Revenue and Consumer’s Welfare

Authors

  • Jyotsna Haran Visiting Professor, Royal College of Arts Science & Commerce, Mumbai
  • Saurabh Ojha Chartered Accountant, Mumbai

DOI:

https://doi.org/10.33516/maj.v56i7.37-39p

Keywords:

No Keywords.

Abstract

The Goods & Service Tax (GST) which was introduced in 2017, aimed at creating a single unified market for all products throughout the country. Though it included majority of the products, few products were kept out of its ambit and Petroleum products were one amongst of these exemptions. The reason to exclude petroleum products was simple- Lucrative Tax revenues enjoyed by both the Centre & the states, which would shrink considerably under GST regime. However, in recent times, when the prices of petrol & diesel have skyrocketed, the discussion around bringing these products into GST have again gained momentum. There is a dilemma, on one hand, experts consider that getting petroleum products under GST would reduce the prices and provide support to the consumers, others suppose such move could further dampen the government finances already affected by Covid-19 pandemic.

Downloads

Download data is not yet available.

Published

2021-07-31

How to Cite

Haran, J., & Ojha, S. (2021). Petroleum Products Under GST: A Trade-Off Between Government Revenue and Consumer’s Welfare. The Management Accountant Journal, 56(7), 37–39. https://doi.org/10.33516/maj.v56i7.37-39p

Issue

Section

Cover Story

References

Das, K. (2021, Feb 19). Explained: How higher petrol, diesel prices impact you. Retrieved from indiatoday. in: https://www.indiatoday.in/business/story/explained-how-highe-petrol-diesel-pricesimpactyou-1770896-2021-02-19

Dhasmana, I. (2021, Feb 6). RBI monetary policy: Govt told to cut fuel taxes to ease inflation concerns. Retrieved from business-standard.com: https://www.businessstandard.com/article/finance/rbi-monetary-policy-govt-told-to-cut-fuel-taxes-to-ease-inflationconcerns121020600051_1.html

DNA Web Team, S. S. (2021, March 24). DNA Explainer: What will happen if petrol and diesel is brought under GST? Retrieved from dnaindia.com: https://www.dnaindia.com/business/report-dna-explainer-what-happensif-petrol-and-diesel-are-brought-under-goods-and-service-tax2-882953

Gupta, N. S. (2020, Nov 9). India can save Rs 1 lakh crore on crude oil imports by meeti.etrieved from timesofindia.indiatimes.com: https://timesofindia.indiatimes.

com/business/india-business/india-can-save-rs-1-lakh-croreoncrude-oil-imports-by-meeting30-ev-penetration-target-study/articleshow/79127575.cms#:~:text=The%20CEEW%20study%2C%20supported%20 by, 18%25%20reduction%20in%20carb

Inamdar, T. (2021, March 05). Petrol price can go down to Rs 75 if brought under GST: SK Ghosh. Retrieved from economictimes.indiatimes.com: https://economictimes.indiatimes.com/markets/expert-view/petrol-price-can-go-down-tors75-if-brought-under-gst-skghosh/articleshow/81344631.cms?from=mdr

Jha, P. C. (2020, March 15). Why high cigarette taxes hurt the economy. Retrieved from business-standard.com: https://www.business-standard.com/article/opinion/why-highcigarettetaxes-hurt-theeconomy-120031400899_1.html

Kaul, V. (2021, March 09). If Petrol & diesel are brought under GST. Retrieved from livemint.com: https://www.livemint.com/news/india/if-petrol-and-diesel-are-brought-under-gst-theyll-have-to-be-taxed-at-more-than-100-11615277275408.html

PTI. (2021, Feb 18). After Rajasthan, petrol crosses Rs 100-mark in Madhya Pradesh. Retrieved from economictimes.indiatimes.com: https://economictimes.indiatimes.com/industry/energy/oil-gas/after-rajasthan-petrol-crossesrs100-mark-in-madhyapradesh/articleshow/81084377.cms?from=mdr

PTI. (2021, March 03). Govt can cut excise duty on petrol, diesel. Retrieved from livemint.com: https://www.livemint.com/news/india/govt-can-cutexciseduty-on-petrol-dieselby-8-5-a-litre-without-hurtingrevenues11614772791673.html

Reed, S. (2020, June 06). OPEC and Russia Agree to Extend Oil Production Cuts. Retrieved from nytimes.com: https://www.nytimes.com/2020/06/06/business/energyenvironment/opec-russia-oilcoronavirus.html

Reuters. (2020, April 1). Crude oil tumbles below $20 per barrel -- lowest since 2002. Retrieved from businesstoday.in: https://www.businesstoday.in/markets/commodities/crude-oil-tumblesbelow20-per-barrel----lowestsince2002/story/399783.html

SBI, Y. (2021). BRINGING PETROL AND DIESEL UNDER GST LIMITS PAN INDIA. India: SBI.

Sharma, N. C. (2020, June 09). Cess on tobacco products can provide 50,000 cr to fight pandemic : Health groups. Retrieved from livemint.com: https://www.livemint.com/news/india/cess-on-tobaccoproductscan-provide-rs-50kcr-to-fight-pandemic-healthgroups11591718163949.html

sharma, S. N. (2019, September 29). There should be just 3 GST rates: 6, 12 & 18%: Bibek Debroy. Retrieved from economictimes.indiatimes.com: https://economictimes.indiatimes.com/news/economy/policy/there-should-be-just3-gst-rates-6-12-18-bibekdebroy/articleshow/71356565.cms?from=mdr

Shreya Nandi, G. C. (2021, Feb 19). Govt backs merger of 2 tax slabs in GST. Retrieved from livemint.com: https://www.livemint.com/politics/policy/govtbacksmerger-of-2-tax-slabs-ingst11613700756158.html

Similar Articles

<< < 12 13 14 15 16 17 18 19 20 21 > >> 

You may also start an advanced similarity search for this article.