June 22, 2017
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Taxing point shift to consumption under GST to benefit consuming states and expand the tax base covering petroleum products.
Implementation of GST shifts the taxing point from production to consumption, expanding the tax base and creating a consumption oriented revenue benefit for consuming states. The outreach gathered central and state tax departments, petroleum industry stakeholders and taxpayers to explain the transition, address implementation concerns, and emphasised technological measures and administrative coordination to facilitate a transparent transition and promote ease of doing business. Most petroleum derivatives (superior kerosene oil, LPG, furnace oil, light diesel oil and lubricants) will be covered by GST, while motor spirit, high speed diesel, aviation turbine fuel, crude and natural gas remain outside it.