Integrating Petroleum Products, Electricity, and Real Estate into GST: A Step towards Economic Reforms
Newly appointed CII president Sanjiv Puri emphasizes the need to bring petroleum products, electricity, and real estate under the GST purview, alongside reforms to simplify capital gains tax and TDS provisions.
GstPetroleum ProductsElectricityReal EstateEconomic ReformsTax StructureCiiMopngReal EstateJun 13, 2024
Puri emphasized the need for a three-tier import duty structure, with raw materials at the lowest rate, followed by intermediates, and then finished goods. He also stressed the importance of rationalizing capital gains tax, which is part of the 14-point agenda of the new government. Moreover, he suggested laying down a roadmap for simplifying and rationalizing direct taxes, including capital gains tax and TDS provisions.
In a related development, the new Union Oil Minister, Hardeep Singh Puri, has announced that the Ministry of Petroleum and Natural Gas (MoPNG) will work towards bringing petrol, diesel, and ATF under the GST purview. The MoPNG will need to make a recommendation to the Finance Ministry, which will then present it to the GST Council for approval.
Currently, petrol and diesel are excluded from GST and are subject to Value-Added Tax (VAT), central excise duty, and central sales tax. States determine their individual tax rates for these fuels, as well as natural gas and aviation turbine fuel (ATF).
The Confederation of Indian Industry (CII) is a non-governmental trade association that works to promote the development of Indian industry. Sanjiv Puri, the newly appointed President of CII, has been a vocal advocate for economic reforms and simplification of the tax structure.
The Ministry of Petroleum and Natural Gas (MoPNG) is responsible for the exploration, production, and distribution of petroleum products in India. Hardeep Singh Puri, the new Union Oil Minister, has pledged to work towards bringing petrol, diesel, and ATF under the GST purview.
Frequently Asked Questions
What is the current status of GST on petroleum products?
Petroleum products are currently excluded from GST and are subject to VAT, central excise duty, and central sales tax.
Why is it important to bring real estate under GST?
Bringing real estate under GST will help to simplify the tax structure and promote economic reforms.
What is the three-tier import duty structure proposed by Sanjiv Puri?
The three-tier import duty structure proposes raw materials at the lowest rate, followed by intermediates, and then finished goods.
What is the role of the GST Council in levying GST on petroleum products?
The GST Council is responsible for approving the levying of GST on petroleum products, following a recommendation from the Finance Ministry.
What is the significance of integrating electricity into the GST framework?
Integrating electricity into the GST framework will help to simplify the tax structure and promote economic reforms in the energy sector.
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