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3/2/21

With one step of the government, petrol can become cheaper by Rs 45 in a single day in the country! Know when and how radical change can happen?

 With one step of the government, petrol can become cheaper by Rs 45 in a single day in the country! Know when and how radical change can happen?




At present, petrol and diesel prices are skyrocketing across the country and in many cities, petrol prices have gone up by more than Rs 100. Prices are going up due to various taxes being levied on petrol prices. There is a demand from the people that the tax should be reduced as soon as possible so that the rising price of petrol can be brought under control. On the other hand, many are also demanding that petrol prices be brought under GST.


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Petrol

It should be noted that petrol-diesel prices are not covered under GST and are taxed by the state and central government on their own, but the question is whether petrol prices will come down after they are finally covered by GST. What will be the difference in petrol price after that? So let's know the complete math of petrol and diesel tax.


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Petrol

Let it be known that oil companies announce oil prices on a daily basis. At present, petrol and diesel prices are skyrocketing not because of the tax hike but because of the rise in crude oil prices. But, earlier a lot of tax was levied on crude oil from the governments, which has led to the demand to bring oil under GST now. But if after coming under GST, only GST will be levied on petrol which will come in some GST slab. Currently, the maximum GST slab is 28%, which means that if petrol and diesel are brought under GST, a maximum tax of 28% can be levied.



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What kind of tax is currently levied?

There are many types of taxes or duties on the base price of petrol. Due to which the price of petrol goes up. Let it be known that duty is levied on the base price of petrol if it is taxed. That is the tax levied on goods crossing the border. Cess is also levied on it. Which are for some special deeds in the country and it is said that this income is spent on the deeds of special development. In addition, profits from petrol pumps and dealers are added to the price. After which petrol and diesel prices are going up a lot. At the same time, it includes local body tax, entry tax, SSC, etc., which also increases the price of petrol.


How much is the tax now?

If we take the example of Delhi, the current price of petrol in Delhi is Rs 91.71. The base price of petrol is only Rs 33.26, with a freight charge of Rs 0.28, excise duty and VAT of Rs 33.54 from the dealer, followed by excise duty of Rs 32.90. The dealer commission is Rs 3.69 and the extra vent costs Rs 21.04. Thus, the total price of petrol is Rs 91.17.

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What will happen after GST?

If we talk about GST, it has many slabs of tax. On the basis of which tax is levied. If petrol prices are also covered under GST and even the highest tax slab is covered at 28%, then petrol prices will go down a lot. Even after paying tax on petrol after coming under GST, the price of petrol will go down a lot and the consumer will have to pay a lot less.


This will change when GST is included

In this regard, Ajay Kedia, managing director, Kedia Advisory, said that if petrol prices were covered under GST, excise duty and VAT would go up. The government can impose a maximum of 28% GST on it. At the same time, the state government cannot levy VAT and if the state government imposes any tax to increase revenue, it can levy it in the form of cess which is very low.


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Petrol will become so cheap

If we talk about Delhi, the current dealer base price is Rs 33.54. The maximum tax slab of which 28% tax is levied is Rs 9.3912. If the dealer commission is added by about Rs 3, the customer will get only Rs 45.93 per liter of petrol. According to current calculations, petrol costs around Rs 45. At the same time, even if a cess is added to the price of petrol, the price of petrol will be much lower.

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