Hailing the GST Council's decision to reduce tax rates on several items and services, President of PHD Chamber of Commerce and Industry, Rajeev Talwar on Sunday urged the government and the council to consider bringing petroleum products under the ambit of Goods and Services Tax (GST).
"Considering the volatility in the international crude oil prices, petroleum products should also be considered under the GST to rationalise the impact of indirect taxes by subsuming VAT (Value Added Tax) and excise duties in GST," the industry body said in a statement quoting Talwar.
Currently, petrol and diesel are outside the purview of GST, and attract excise duty and VAT among other levies. Sector experts say, bringing the two under GST would lower their price, which this year surged to record levels, before taking a downturn in mid-October.
"Continuous reforms in the policy environment would pave the way for higher, sustainable and strong economic growth trajectory going forward," he added.
He also noted that a realistic, pragmatic and prudent policy approach would make India a tax-compliant country in the next few years.
"Reduction in tax rates on the items from TVs to movies tickets, marble rubble, frozen and preserved vegetables, among others is a great relief for every segment of the society," he said.
The GST Council in its 31st meeting on Saturday reduced the tax rates of 17 items and six services, including computer monitors, TV screens, video games, lithium-ion power banks, retreaded tyres, wheelchairs and cinema tickets.
With the latest rate cut announcement, only 28 items including cement, luxury and 'sin' goods remain in the highest tax bracket of 28 per cent.
"The shift in items from higher tax slabs to lower tax slabs is the visible intent of the government to constantly reforming the taxation system to make it more and more simple," Talwar said.
--IANS
rrb/prs
Disclaimer: No Business Standard Journalist was involved in creation of this content
