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On the timeline to include petroleum products and alcohol outside GST, FM Nirmala Sitharaman in an exclusive interview with Network 18 says, “Not in the immediate future.”
When the goods and services tax (GST) was rolled out in July 2017, items like petrol, diesel, and alcoholic beverages were kept outside its ambit.
Finance Minister Nirmala Sitharaman on Friday said petrol and diesel are unlikely to come under the GST ambit anytime soon. She was speaking with Network18 Group Editor-in-Chief Rahul Joshi in an exclusive interview.
Asked if petroleum products and alcohol will continue to remain outside the GST, Sitharaman said, “The current proposal does not include it.”
On the timeline, she said, “Not in the immediate future.”
When the goods and services tax (GST) was rolled out in July 2017, items like petrol, diesel, and alcoholic beverages were kept outside its ambit. The decision was taken because these commodities are major revenue sources for both central and state governments through excise duty and value-added tax (VAT). Bringing them under GST would have meant a significant loss of fiscal autonomy for states. As a result, taxes on fuel and alcohol continue to be levied separately by the Centre and the states, often leading to high retail prices despite GST simplifying the indirect tax structure for most other goods and services.
On September 3, the GST Council, led by Sitharaman, approved significant GST cuts on a number of items ranging from daily-use items like shampoo and hair oil to automobiles to TVs. After the 56th GST Council meeting, the finance minister also announced more simplified GST structure with only three tax slabs — 5%, 18% and 40%.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
September 05, 2025, 16:21 IST
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