Centre Ready To Bring Petrol & Diesel Under GST, But Will States Agree: Union Minister

New Delhi: Union minister Hardeep Singh Puri said on Monday that the Central government is ready to bring petrol and diesel under the purview of GST, but the states may not agree as fuel and liquor are major revenue generators for them.

“For bringing petrol and diesel under GST, the states have to agree. If the states make the move, we are ready. We have been ready all along. That’s my understanding. It is another issue how to implement it. That question should be addressed to the Finance minister,” PTI quoted the Union minister of Petroleum & Natural Gas and Housing & Urban Affairs as saying.

To drive home his point, Puri said Kerala High Court had suggested that the issue be placed before GST Council for discussion, but the Kerala Finance minister didn’t agree.

“As far as GST is concerned, your wishes and my wishes apart, we are in a cooperative federal system,” Puri said.

On fuel prices, Puri said India has had one of the lowest price rise over the past year. He mentioned fuel price rose by 2% in India while in the US it was 43% in one year.

“There are some countries in our neighbourhood which have fuel shortages, and prices are exorbitant. But we did not have shortages even in the remote areas of the country. It has been a very strong navigation at the level of the Centre and the states. What will happen in future is difficult to say,” Puri said.