Amidst rising fuel prices becoming a political issue in poll-bound states, Chief Economic Advisor K V Subramanian has batted for bringing petroleum products under GST regime, but left the decision to the GST Council.
“It will be a good move to bring the petroleum products under the Goods and Services Tax regime, but the decision rests with the GST Council,” he said in a recently held interaction with FICCI FLO members.
He also said inflationary pressures are mostly due to food inflation.
Petroleum Minister Dharmendra Pradhan had also asked Union Finance Minister Nirmala Sitharaman to bring petroleum products under the GST’s ambit.
Petrol prices had crossed historic high levels of Rs 100 a litre in several cities in the previous weeks. The spurt in fuel prices is due to a rally in global crude oil prices.
Taking into account the opposition raising concerns over fuel rpice hike, RBI Governor Shaktikanta Das asked the government to reduce indirect taxes on petrol and diesel.
