{"id":14860,"date":"2025-09-23T08:28:00","date_gmt":"2025-09-23T08:28:00","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/09\/23\/jet-fuel-entry-into-gst-still-a-year-away-auto-cess-relief-looks-unlikely-for-now-economy-news\/"},"modified":"2025-09-23T08:28:00","modified_gmt":"2025-09-23T08:28:00","slug":"jet-fuel-entry-into-gst-still-a-year-away-auto-cess-relief-looks-unlikely-for-now-economy-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/09\/23\/jet-fuel-entry-into-gst-still-a-year-away-auto-cess-relief-looks-unlikely-for-now-economy-news\/","title":{"rendered":"Jet Fuel Entry Into GST Still A Year Away; Auto Cess Relief Looks Unlikely For Now | Economy News"},"content":{"rendered":"


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Govt said next phase of GST reforms, including jet fuel & other petroleum products, won\u2019t be taken up for at least a year<\/h2>\n
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The government has clarified that the next phase of Goods and Services Tax (GST) reforms \u2014 including the inclusion of jet fuel and other petroleum products \u2014 will not be taken up for at least a year.<\/p>\n

Shashank Priya, Special Secretary and Member of the Central Board of Indirect Taxes and Customs (CBIC), said on September 23 that the newly introduced GST 2.0 framework must stabilise before further changes are considered. He was speaking at the National Conclave on GST 2.0 organised by Assocham.<\/p>\n

\u201cThe further discussion on reforms of inclusion of ATF (aviation turbine fuel), etc., will not happen before a year, till the dust settles down on GST 2.0 reforms,” Priya noted, signalling that broader reforms have been pushed to the medium term, with immediate focus on automation, refunds, and simplified compliance.<\/p>\n

No relief for auto dealers<\/h3>\n

Under GST 1.0, a compensation cess of 17\u201322 percent on cars raised the effective tax incidence on vehicles to between 45 and 50 percent. Dealers who purchased vehicles at the earlier 28 percent GST plus cess rate, prior to September 22, will not be able to claim credit for the cess already paid.<\/p>\n

Industry estimates suggest the blocked credit amounts to about Rs 2,500 crore, and dealers have sought a refund mechanism. Responding to concerns, Priya said, \u201cWe are aware of the issues, but as far as cess is concerned, the government at this stage has no plan to address it by refund or giving credit. I hope the industry will adjust to this. We do not have an immediate quick fix for it.” His remarks underscore the government\u2019s cautious stance even as the automobile sector continues to press for cess relief.<\/p>\n

Focus on automation and compliance ease<\/h3>\n

Priya said the tax department is preparing automation-driven initiatives to simplify refunds and compliance. From November 1, a new scheme will provide automatic registration within three working days for small taxpayers with Input Tax Credit (ITC) claims up to Rs 2.5 lakh.<\/p>\n

Ninety percent of refunds to exporters will also be processed on priority.<\/p>\n

In a separate directive, the CBIC has asked field formations to monitor product prices to ensure that reductions are passed on to consumers after GST 2.0 implementation. The anti-profiteering provision, however, has not been triggered.<\/p>\n

CBIC is also classifying low-risk businesses to streamline oversight and has written to industry associations and field units to identify areas for simplifying return filing. \u201cI am sure that the return process can be automated to make it simpler. We need to ensure this,” Priya added.<\/p>\n

GST 2.0 framework<\/h3>\n

The new GST regime, effective September 22, has simplified the indirect tax structure into two slabs \u2014 5 percent and 18 percent. While hailed as one of the most significant tax reforms in decades, industry players have raised concerns about product classification, input tax credit structures, and the continuing cess burden.<\/p>\n

The GST Compensation Cess, introduced to offset states\u2019 revenue shortfall for five years, has long outlived its original purpose. Its collections are now directed towards servicing pandemic-era borrowings, leaving sectors like automobiles struggling with unutilised cess credit and elevated costs.<\/p>\n

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Aparna Deb<\/a><\/p>\n

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More<\/span><\/p>\n<\/div>\n<\/div>\n

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More<\/span><\/p>\n<\/div>\n<\/div>\n

Click here<\/a> to add News18 as your preferred news source on Google. Stay updated with all the latest business news, including market trends<\/a>,\u00a0stock updates<\/a>,\u00a0tax<\/a>, IPO,\u00a0banking finance<\/a>, real estate, savings and investments. To Get in-depth analysis, expert opinions, and real-time updates. Also Download the\u00a0News18 App<\/a> to stay updated.<\/span><\/div>\n
First Published:<\/span><\/p>\n
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September 23, 2025, 13:40 IST<\/p>\n<\/div>\n<\/div>\n

News<\/a> business<\/a> economy<\/a> Jet Fuel Entry Into GST Still A Year Away; Auto Cess Relief Looks Unlikely For Now<\/span><\/div>\n
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