Apply GST in Petro products

In the current scenario, three major taxes are levied upon the price of petrol that consumers are charged with- VAT, Excise Duty and dealers’ commission. All these will be subsumed if petro products are included under GST. In case, GST is applied on petro products, it will stand to subsume both VAT and excise duty and will be replaced by one of the four broad tax slabs of the new tax regime. Assuming that fuel is charged even under the highest tax slab of 28 per cent, the prices of petroleum products will fall sharply. For instance, if 28 per cent GST is levied upon the dealers’ base price of Rs 30.70, the consumer will have to shell out Rs 39.30 for a litre of petrol, which is Rs 31 less than the existing price.