News Detail

It's states' call to put petro products under GST: FM

It’s states’ call to put petro products under GST: FM



Finance minister Nirmala Sitharaman on Sunday put the onus of bringing petroleum products under the ambit of GST on states.

While addressing the media after a post-Budget meeting with industry representatives, the FM said states and the GST Council have to decide when they will bring this under GST. “No amendment (to the law) will be required. Whenever the states decide to bring this under the new regime, it can be done.”

Sitharaman also indicated that the government has “literally” proposed to the GST Council to consider a situation, where tax rates rationalisation can take place once a year.

Her comments come in the backdrop of frequent changes in rates ever since the new regime kicked in over two years ago and indicated that the Centre was keen on bringing about stability at a time when collections have remained lower than the target.

Sitharaman also said the finance ministry was “closely monitoring” credit growth, particularly for the retail sector, to boost consumption.

“Lending, particularly for retail by banks, both public and private sector, are issues that we are closely monitoring. The finance secretary has been continuously engaging with banks.”

The government’s continuous engagement with banks and NBFCs and encouraging them to boost credit growth has helped disburse close to Rs 4 lakh crore worth retail advances across 400 districts during the festive season starting Dussehra, she said. “After that, we have been following it up. NBFCs are being given quite a few facilities so that they can have greater liquidity. So, all steps are being taken to ensure that liquidity is not an issue.”

Sitharaman hinted that there could be some “grandfathering” option available to the investors, who have already made long-term investments, keeping in mind the previous tax regime.

“You will have a situation where people who have made these commitments towards long-term investments or savings for their houses, their insurances. A part of the governance is also to administer, keeping all those things in mind. It is not that somebody is to deny the commitment they have made.”