LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » India News

FM Arun Jaitley asks states to reduce VAT on petroleum products post GST

Finance Minister Arun Jaitley writes to State Chief Ministers to reduce burden of Value Added Tax on Petroleum Products used for manufacturing.  

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
FM Arun Jaitley asks states to reduce VAT on petroleum products post GST
Union Ministers Arun Jaitley and Ravi Shankar Prasad at a press conference in New Delhi. Image Source: IANS
Written By: ZeeBiz WebTeam
Updated: Fri, Aug 18, 2017
12:30 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
Budget 2019 expectations: Tax payers alert! How will Arun Jaitley please salaried classes ahead of crucial Lok Sabha Elections? Budget 2019 expectations: Tax payers alert! How will Arun Jaitley please salaried classes ahead of crucial Lok Sabha Elections?
Budget 2019: Finance Miniter Arun Jaitley faces tough task of boosting defence Budget 2019: Finance Miniter Arun Jaitley faces tough task of boosting defence
Not dissatisfied with functioning of RBI, Arun Jaitley says in Lok Sabha Not dissatisfied with functioning of RBI, Arun Jaitley says in Lok Sabha
Over 6,000 officers of PSBs held responsible for bad loans: Arun Jaitley Over 6,000 officers of PSBs held responsible for bad loans: Arun Jaitley
Union Cabinet approves sale of govt's 52.63 pct stake in REC to PFC Union Cabinet approves sale of govt's 52.63 pct stake in REC to PFC
Key Highlights
  • Tax incidence on petroleum products increased post GST.
  • Jaitley wrote to state Chief Ministers to reduce burden of VAT on petroleum products.
  • Pre GST certain states had lower rate of 5% VAT on CNG used for manufacturing of goods. 

The Union Minister of Finance, Defence and Corporate Affairs, Arun Jaitley wrote to State Chief Ministers to reduce the burden of Value Added Tax (VAT) on petroleum products used in manufacturing. His plea was on the basis of rising input costs in the making of goods after the rollout of Goods and Services Tax (GST) from July 1, Press Information Bureau said on Friday.  

“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 Goods and Services Tax regime,” the report said.

The GST Council had earlier decided to reduce the rates of over 66 items before the implementation of GST. In August, the Council received over 150 requests to reduce rates.

The burden of VAT on petroleum went unseen before the rollout of GST, the report said.

“As was decided by the Empowered Committee (EC) of states' finance ministers, we have brought petroleum in the constitutional amendment for the GST...it is zero rated and tax will only be applied when the GST Council decides," Jaitley said at the Aaj Tak conclave on the Goods and Services Tax in June this year. 

“In the pre-GST regime, because the petroleum products as well as the final goods produced both attracted VAT, input tax credit of petroleum products being used as inputs by manufacturers was allowed to varying extent by different States.   However, in the post-GST scenario, the manufactured goods attract GST while the inputs of petroleum products used in the manufacturing attract VAT and, therefore, it would lead to cascading of taxes.  In view of this, in the pre GST regime certain States had lower rate of 5% VAT on Compressed Natural Gas used for manufacturing of goods.  Some States also had lower rate of VAT on diesel being used for manufacturing sector,” the report said.  

“Thus Arun Jaitley has requested other States also to explore the possibility of having a lower rate of VAT on petroleum products used for manufacturing of those items on which there is GST, so that there is minimum disruption in the costing of goods,” it added.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Finance Minister Arun JaitleyGSTpetroleum productsGoods and Service TaxCNGVATValue Added TaxStatesChief MinistersEconomy
RELATED NEWS
Budget 2019 expectations: Tax payers alert! How will Arun Jaitley please salaried classes ahead of crucial Lok Sabha Elections? Budget 2019 expectations: Tax payers alert! How will Arun Jaitley please salaried classes ahead of crucial Lok Sabha Elections?
Budget 2019: Finance Miniter Arun Jaitley faces tough task of boosting defence Budget 2019: Finance Miniter Arun Jaitley faces tough task of boosting defence
Not dissatisfied with functioning of RBI, Arun Jaitley says in Lok Sabha Not dissatisfied with functioning of RBI, Arun Jaitley says in Lok Sabha
Over 6,000 officers of PSBs held responsible for bad loans: Arun Jaitley Over 6,000 officers of PSBs held responsible for bad loans: Arun Jaitley
Union Cabinet approves sale of govt's 52.63 pct stake in REC to PFC Union Cabinet approves sale of govt's 52.63 pct stake in REC to PFC

LATEST NEWS

LIC wage revision: Employees to get over 25% wage hike, five day week and other benefits - All details here

UPSC EPFO 2021: Admit card for the exam released at upsc.gov.in - check exam date and everything you need to know before appearing for the exam

Govt notifies Rs 6k cr PLI scheme for AC, LED light manufacturing

Free Fire OB27 update released in India: Check how to APK download link, new map, characters and more

Vivek, Tamil actor and comedian, passes away at 59 in Chennai hospital

Ravichandran Ashwin roped in as Beetel brand ambassador

IBPS admit card 2021 released—here is how you can download it from official website ibps.in

Odisha Board Exam 2021 News: Class 10 class 12 board exams POSTPONED, class 9 and 11 students to get PROMOTED WITHOUT EXAMS

Glenmark Pharma share price: Expert says HUGE value unlocking; reveals two BUY targets

GOOD NEWS! Modi Government slashes Remdesivir MRP by half, with retro-effect—This is how much it will cost you now

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved