Currently, both natural gas and ATF are outside the purview of GST and are subject to several central and state taxes. The final proposal is likely to be placed before the GST Council in its next meeting. The Finance Ministry has sought more data.
Natural Gas and ATF under GST: The government has started the process of bringing natural gas and air turbine fuel (ATF) under the ambit of GST (Goods and Services Tax). The final proposal is expected to be placed before the next meeting of the GST Council. Recently, the Finance Ministry held a meeting with the Ministry of Petroleum and Natural Gas in this regard and has sought more data. The central ministry has also given a presentation to the Finance Ministry on its impact.
Two meetings have been held
ET Now reporter Prakash Priyadarshi has confirmed this. Priyadarshi said that the formal process has started with the Finance Ministry. Active discussions are going on with all stakeholders. Two such meetings have been held in the last two months and the Oil Ministry has given a detailed presentation to the Finance Ministry on its overall impact. He further said that major states including Gujarat have agreed to this proposal. It is being considered a major success on this issue. With this, the final proposal is likely to be placed before the GST Council in its next meeting.
Currently out of GST
At present, both natural gas and ATF are out of GST and many central and state taxes are levied on them. VAT on natural gas ranges from 14 to 24 percent. While VAT on ATF ranges from 5 to 18 percent. The central government levies 11 percent basic excise duty on ATF. The government also levies cess on these items.
Gross GST collection increased by 8 per cent to Rs 1.74 lakh crore in June. This is more than the GST collection in May 2024.
