Taxes levied on petrol under GST

Very good news can be found on petrol and diesel very soon. Minister Nirmala Sitharaman has made a big announcement on Tuesday. He has said that he is ready to negotiate to bring petrol and diesel under the purview of GST in the next meeting of the GST Council. If this happens, the whole country can get a big relief from inflation soon because petrol prices have crossed Rs 90 in many cities at this time.

In the last few months, amidst rising prices of petrol and diesel in the country, people have demanded that the tax be reduced at the earliest so that the prices of petrol can be controlled. On the other hand, many people are also demanding that petrol prices be brought under GST. By bringing GST under the purview of petrol and diesel prices will be reduced to a great extent.

Let’s know-how will the price of petrol come down and how much it will come down when it comes under the purview of GST.

A maximum slab of GST 28 percent

The companies of oil (petrol &diesel) release prices every day. Right now different types of taxes are being levied on oil, but only GST will be levied on petrol, which will be in someone's GST slab. At present, the maximum GST slab is 28 percent, that is, after the entry of petrol in GST, a maximum tax of up to 28 percent can be imposed.

What are the taxes levied now?

Many types of taxes or duties are added to the base price of petrol, due to which the price of petrol increases considerably.  A separate duty is taken. Along with this, cess is also put in it, which is for some special work in the country, and it is said that this money is put in a special developer.

Petrol pump or dealer profit etc. is also concluded, after this, the price of petrol becomes very high. Along with this, there are also lock body tax, entry tax, SSC, etc., due to which the price of petrol increases.

How much is the tax now?

If you understand from the example of Delhi, then the petrol rate in Delhi is 91.17 rupees. In this, the base price of base petrol is only Rs 33.26, in which a freight charge of Rs 0.28 is charged. In addition to excise duty and VAT, Rs 33.54 is charged from the dealers having a GST Registration online. Then it costs an excise duty of Rs 32.90. After this, the dealer commission is Rs 3.69 and the extra VAT is Rs 21.04. In this case, the price of petrol becomes 91.17 rupees.

How much will be the price after GST?

There are many slabs in GST, based on which tax is collected. If the largest slab i.e. a slab under GST of 28 %  is also imposed on the prices of petrol, then petrol prices will be reduced to a great extent from now. Exactly, In that situation, even after paying tax, you will have to pay a very low price of petrol.

Experts say that if the price of petrol comes in GST, then excise duty and VAT will be removed. The government can impose a maximum of 28 percent GST on this. Also, the state government will not be able to impose VAT and if the state government imposes any tax to increase the revenue, it can impose it as a cess, which will not be too much.'

If we talk about Delhi only, then the dealer base price is Rs 33.54. On that a (28) percent of the tax is collected with maximum slab, then there is a tax of Rs 9.3912. At the same time, if you add about 3 rupees to the dealer commission, then you will get only 45.93 liters of petrol. According to now, petrol is about 45 rupees more. Also, if any cesses are added to it, then the price of petrol will also be reduced considerably.