States agree to cut VAT on petrol products in relief for manufacturers

Manufacturers have been hit by a higher tax outgo that comes without any input credit

Finance Minister Arun Jaitley's plea to states to lower VAT on hydrocarbons appear to have had an impact and the country's manufacturing sector may have reason to cheer over cheaper input costs, according to reports. In fact, India may be moving towards a uniform petroleum tax.  

According to the Economic Times, states have given their nod to capping value-added tax (VAT) on natural gas at five per cent. Further, according to the report, they have agreed to lower VAT on other petroleum products, including petrol and diesel, which are used by the manufacturers as input. The Goods and Services