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From September 22, many essential household items in the country are going to get relief in the rates of GST. Prices ranging from AC, fridge, washing machine to soap, shampoo will be reduced, which will make a difference on the common man's pocket. But the question arises that why the prices of petrol and diesel are not being brought under the purview of GST? Recently, CBIC Chairman Sanjay Aggarwal has given a clear clear manner to this question. He informed that it is not possible to bring petrol and diesel under GST at the moment. Because these are currently imposing excise duty on these and the price for the states is a large revenue source of VAT (VAT).

Petrol and diesel tax is a big part of the earnings of states

The tax imposed on petrol and diesel does not only affect the common man, but for many states it is about 25-30 percent of their total income. In such a situation, if these fuels are brought under GST, then the income of the states will be affected. This is the reason that the government is not taking any major step in this direction at the moment.

Finance Minister Nirmala Sitharaman also clearly stated a few days ago that the central government is not deliberately include petrol and diesel in the proposal of GST. This decision was taken as soon as GST was implemented in 2017, when items like petrol, diesel and alcohol were kept out of the purview of GST.

Big changes in GST

Many important changes will be applicable in GST from 22 September. This will reduce the prices of many domestic needs. For example, GST rate of hair oil, soap, fridge, air conditioner, shampoo, washing machine and some medicines will be reduced. The general public will get direct benefit of this. But despite these changes, petrol and diesel will still not be included in the GST. The CBIC chairman says that at present, both the Center and the state governments want to avoid the loss of revenue from these products.