Preparation to bring natural gas and food grains under GST, know what will be the effect

0
436

New Delhi, Jagran Bureau. After the revenue from GST has remained below Rs 1 lakh crore continuously, now the government is considering increasing its scope. It can start with natural gas and ATF. Apart from this, a round of discussions has started on the possibilities of bringing food grains under the purview of GST.

According to Finance Ministry sources, while the government is considering to limit the number of rates on the one hand amid preparations to take the GST to the next stage, the possibilities of including some products are being explored. There could be some increase in the revenue received by the government. Under this, gas and ATF are considered the most likely targets among the five petroleum products. However, its decision will be taken only in the meeting of the GST Council. Sources reveal that it is possible that both these products will be agreed by the council.

Keeping these possibilities in mind, Finance Ministry officials have started preparing for the next round of talks. The Petroleum Ministry has already proposed to bring both these products under the purview of GST. At the time of introduction of GST, the government excluded five petroleum products – petrol, diesel, gas, ATF and crude oil.

Apart from this, the government is also exploring the possibility of bringing food grains under the purview of GST. The Committee on Officials on Revenue Growth has started considering such products. At the time of VAT before GST, traders had to pay the purchase tax on food grains in the states, but after the GST was implemented, the purchase tax was abolished. But now the group of officials are exploring the possibility that GST can be applied to these products through reverse charge mechanism? In this case, registered companies can pay GST on the basis of non-registered traders. However, sources say that it has only come up in the initial discussion. It is yet to be discussed in detail.

Significantly, after the implementation of GST, only in April this year the revenue amount has crossed one lakh crore. In September, it hit a 19-month low of Rs 91916 crore. In view of this situation, the government is considering different measures to increase the revenue of GST.

LEAVE A REPLY

Please enter your comment!
Please enter your name here