Bring Petrol, Diesel Under GST To Reduce Fuel Rates: Trade Body

Chamber of Trade and Industry also urged the central government to withdraw the increased excise duty that was introduced last year due to the COVID-19 pandemic.

The Chamber of Trade and Industry (CTI) on Thursday asked the government to bring petrol and diesel under the ambit of GST to bring down the fuel rates, a day after prices of petrol in Delhi crossed the Rs 100 a litre-mark. It also urged the central government to withdraw the increased excise duty that was introduced last year due to the COVID-19 pandemic. "Crude oil was the cheapest in the last 16 years in 2020-21. During corona, between March and May, 2020, when crude oil became cheaper, the central government increased the excise duty on petrol by Rs 13/litre and diesel by Rs 16/litre," a statement from the CTI said. It noted that the dealer price of petrol in Delhi is Rs 40.62/litre, central excise duty on it is Rs 32.90/litre, VAT is Rs 23.13/litre, while dealer commission is Rs 3.60/litre, that is, the tax being levied on per litre of petrol is Rs 56.03. Similarly, the dealer price of diesel is Rs 42.39/litre, excise duty is Rs 31.80/litre, VAT is Rs 12.85/litre while dealer commission is Rs 2.53/litre, making the tax levied on diesel Rs 44.65/litre.