BJD MP Sasmit Patra meets FM Sitharaman; urges structured deliberation on inclusion of petrol, diesel under GST framework
New Delhi, May 21
Biju Janata Dal MP Sasmit Patra met Union Finance Minister Nirmala Sitharaman and submitted a detailed follow-up representation urging the initiation of structured national deliberations on the inclusion of petrol and diesel under the Goods and Services Tax framework.
In his representation, Patra on Wednesday emphasised that the constitutional framework under Article 279A(5) already envisages the eventual inclusion of petroleum products within GST through the recommendation of the GST Council.
He noted that while the matter had previously been deliberated upon in the GST Council following directions of the Kerala High Court, prevailing economic conditions now warrant a fresh, pragmatic and consultative reconsideration of the issue.
As per the release, Rajya Sabha MP Patra highlighted that fuel prices directly impact inflation, transportation and logistics costs, agricultural input costs, MSME operating expenditure and household consumption patterns across the country. He underlined that interstate disparities in VAT structures continue to dilute the objective of tax harmonisation and market integration envisioned under GST.
Drawing attention to Odisha's economic profile as a major mining, industrial and logistics-intensive State, Patra observed that calibrated GST inclusion of petrol and diesel could significantly reduce freight and supply-chain costs, improve industrial competitiveness and provide substantial economic relief to ordinary citizens, farmers, transport operators and MSMEs.
At the same time, he acknowledged the legitimate concerns of States regarding revenue stability arising from petroleum taxation and therefore advocated a balanced and phased framework rather than immediate unconditional inclusion.
He proposed that the GST Council may consider a calibrated GST slab structure, transitional compensation support for States, a limited revenue-protection cess mechanism and a formula-based fiscal stabilisation framework during the transition period.
Patra further requested the Finance Minister to facilitate broad-based consultations with all States and consider constituting a technical and fiscal working group to examine implementation models and build national consensus on phased integration of petroleum products within the GST architecture.
— ANI
Reader Comments
Interesting proposal, but I worry about state revenues. Odisha is a mining state, but what about states like Kerala or Tamil Nadu that rely heavily on petroleum taxes? The phased approach makes sense, but the compensation mechanism needs to be crystal clear. Otherwise, we might see states pushing back hard. Let's see if the FM actually takes this to the GST Council table.
As a small business owner, I can tell you that high fuel costs are killing our margins. Every delivery, every raw material transport - it all adds up. GST inclusion would be a game changer for MSMEs like mine. But I agree with the article - it can't be rushed. States need their pound of flesh too. 😅
Good effort by Patra ji, but I'm skeptical. The GST Council has been discussing this since 2017 and nothing has happened. States like Rajasthan and Punjab have their own VAT structures they don't want to lose. A working group is a good first step, but we need political will too. Otherwise, it's just another representation that gathers dust.
The logic is sound - fuel prices affect everything from dal to data tariffs. But the devil is in the details. A calibrated GST slab might keep prices high anyway if the rate is 28%+. And states will demand compensation that the Centre might not agree to. Let's hope this time the consultation leads to an actual decision, not just more committees. 🤞
As someone who works in logistics, I can confirm that fuel price volatility is our
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