GST Council Meeting: Bringing natural gas in GST likely to be on Council table

GST Council Meeting: Bringing natural gas in GST likely to be on Council table

The inclusion of natural gas within the GST purview on an experimental basis would be put before the GST Council in its forthcoming GST Council meeting, the statement said. He, however, did not prescribe a specific timeframe for bringing natural gas and ATF within GST.

The Goods and services tax (GST) Council in its next meeting could consider bringing natural gas within the purview of the indirect tax regime, GST Council’s Joint Secretary Dheeraj Rastogi said on Friday.

The next item for consideration of inclusion in the GST regime could be aviation turbine fuel (ATF), which is among the five petroleum products proposed to be brought in under the GST ambit, a statement from PHD Chamber of Commerce and Industry quoted Rastogi as saying.

The inclusion of natural gas within the GST purview on an experimental basis would be put before the GST Council in its forthcoming GST Council meeting, the statement said. He, however, did not prescribe a specific timeframe for bringing natural gas and ATF within GST.

“Petroleum is a considerably larger source for revenues not only for Centre but States also and on natural gas front, there is some consensus for bringing it into GST ambit and therefore, it could be first petroleum product that could come in well within GST network,” Rastogi said, according to the PHD Chamber of Commerce and Industry release.

Addressing the workshop on GST, Rastogi also indicated government’s possible intentions for revision in definition of supply under GST.

While products such as LPG, kerosene, naphtha, furnace oil, light diesel oil attract levy of Goods and Services Tax (GST), five petroleum products — crude oil, diesel, petrol, natural gas, aviation turbine fuel (ATF) — still out of the GST ambit. Petroleum ministry and Civil Aviation Ministry have approached Finance Ministry for the inclusion of petrol, diesel and Aviation Turbine Fuel, respectively, under GST.

A senior finance ministry official said that natural gas and ATF are likely to be among the first entrants under GST but the decision to include these may not come in one Council meeting as discussions with all states may take time. “These items are likely to be listed in the Council agenda as and when the date for next meeting is finalised but no view has been finalised yet about the inclusion of natural gas and ATF under GST since the Council will have the final say on the matter,” the official said.

On advance ruling issue, the Joint Secretary held that in the recent past some states have given a contradictory ruling on these to concerned stakeholders and therefore, a policy decision is likely on setting up centralised advance ruling authorities to address relevant issues relating to GST rather than keeping redressal of such issues confined to one particular state advance ruling authority.

Source: http://indianexpress.com/article/business/economy/gst-council-meeting-bringing-natural-gas-in-gst-likely-to-be-on-council-table-5210170/

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