GST on fuel can help rein in prices

States resist move as it curbs their flexibility

The petroleum ministry's push for including crude oil, natural gas, petrol, diesel and aviation turbine fuel in the goods and services tax (GST) may bring benefits to the industry as well as customers at a time of rising retail prices. However, much of the benefits will depend on the GST rates applicable on fuel.  

The GST Council is yet to decide on bringing fuel under the GST’s ambit. Finance Minister Arun Jaitley has asked states to lower their value-added taxes on fuel used for manufacturing.

Oil refiners and marketers are set to take a hit of Rs 25,000 crore