Government is working to explore ways to bring the petroleum products under the domain of the proposed GST. Petroleum Minister Dharmendra Pradhan said we will do it with the consent of all the states.
While announcing the plans to implement Direct Benefit Transfer (DBT) scheme in kerosene, Pradhan said that so far the petroleum products have been kept out of the purview of the proposed Goods and Services Tax but an in-principle decision has been taken to bring these products under the GST as well.
"The petroleum products will be brought under the GST but I don't know when. Since we have a federal structure, we have to get the consent of the states," he said.
The Minister said many states are against bringing the petroleum products under the ambit of GST as it was a huge revenue generating source for them.
Pradhan said except Tamil Nadu, Mizoram and a few Union Territories, most of the states have increased taxes on petroleum products and it was difficult to bring a uniform tax rate across the country.
The Minister said government was planning to implement the Direct Benefit Transfer scheme in kerosene after its successful implementation in LPG. "75 per cent profits to be incurred through the DBT in kerosene would be distributed among the states," he said.