Explorer

Arun Jaitley Asks States To Cut VAT On Natural Gas, Other Fuel

Mr. Jaitley has written to state chief ministers "urging them to reduce the burden of VAT on petroleum products used as inputs in making of goods after the introduction of GST".

New Delhi:  Finance Minister Arun Jaitley has written to state chief ministers seeking a cut in sales tax or VAT on fuels like natural gas that have been kept out of the GST but are used as inputs for goods that come under the new indirect tax regime. Crude oil, petrol, diesel, natural gas and jet fuel (ATF) have been kept out of the Goods and Services Tax (GST) which kicked in from July, replacing over a dozen central and state levies like central excise, service tax and VAT with a single uniform levy.
"The letter by Finance Minister highlights a concern being raised by the manufacturing sector in the country regarding the rise in input costs of petroleum products happening on account of transition to GST regime," an official statement said in New Delhi. Inputs like natural gas are used for power generation as well as in manufacturing fertiliser, petrochemicals and a variety of products like glass. Crude oil is used to make petrol and diesel as also kerosene, LPG and industrial fuels like naptha, fuel oil, and bitumen. While other industries can claim input tax credit or set off tax paid on inputs with that paid on the final product, these industries cannot do so as crude oil, three petroleum products, and natural gas are out of the GST's ambit. This raises the cost for the industries using either of the five products as inputs.
 Mr. Jaitley has written to state chief ministers "urging them to reduce the burden of Value Added Tax (VAT) on petroleum products used as inputs in making of goods after the introduction of GST", said the statement.
Mr. Jaitley has written to state chief ministers "urging them to reduce the burden of Value Added Tax (VAT) on petroleum products used as inputs in making of goods after the introduction of GST", said the statement.
View More
Advertisement
Advertisement
25°C
New Delhi
Rain: 100mm
Humidity: 97%
Wind: WNW 47km/h
See Today's Weather
powered by
Accu Weather
Advertisement

Top Headline

'Have To Save Our Families: PM Modi Blasts DMK Over Drug Busts In TN, Says 'BJP Enough To Fight Menace'
PM Modi Blasts DMK Over Drug Busts In TN, Says 'BJP Enough To Fight Menace'
Mukhtar Ansari Death: UP Court Orders Probe After Son Claims Father 'Poisoned' In Jail — Top Points
Mukhtar Ansari Death: UP Court Orders Probe After Son Claims Father 'Poisoned' In Jail — Top Points
I.N.D.I.A Bloc In Bihar: Here's How Congress, RJD Have Decided To Share Seats After JD-U's Exit
I.N.D.I.A Bloc In Bihar: Here's How Congress, RJD Have Decided To Share Seats After JD-U's Exit
'BJP Should Pay Rs 4,600 Crore': Congress Slams Income Tax Dept, ECI After Getting Rs 1,700-Crore Notice
'BJP Should Pay Rs 4,600 Crore': Congress Slams Income Tax Dept, ECI After Getting Rs 1,700-Crore Notice
Advertisement
for smartphones
and tablets

Videos

Emotional Yet Fun Video Featuring Kapil Sharma, Tabu & Rhea Kapoor, Sharma To Star In 'Crew'ABP Shikhar Sammelan 2024: Anurag Thakur's counterattack to opposition over electoral bondsABP Shikhar Sammelan 2024: Why did BJP canceled tickets of more than 100 sitting MP's?|Anurag ThakurABP Shikhar Sammelan 2024: Anurag Thakur's gets angry on TMC-Congress over remarks on Kangana Ranaut

Photogallery

Embed widget