SME Times is powered by   
Search News
Just in:   • GST good for logistics but glitches, compliance concerns: Ficci  • PNB fraud: ED raids over 45 locations in 15 cities  • India moving towards a $5 tn economy: PM  • CII-IBA Q4 Financial Conditions Index up over 2016-17, falls below Q3  • British minister for slashing some university tuition fees 
Last updated: 18 Aug, 2017  

Arun.9.Thmb.jpg FM asks states to reduce VAT on petroleum products

Arun Jaitley
   Top Stories
» "Northeast land of unexplored opportunities for start-ups"
» Definition of employment changing: Kovind
» Need quality infra to keep pace with globalisation: PM
» India, Iran sign nine agreements
» People must be at the centre of governance: Naidu
SME Times News Bureau | 18 Aug, 2017
Finance Minister Arun Jaitley on Friday urged states to reduce VAT on petroleum products due to concerns regarding the rise in input costs due to the transition to GST regime.

"The letter by Finance Minister to Chief Ministers highlights the concern being raised by the manufacturing sector," the Finance Ministry said in a statement.

The industry had flagged concerns on increase in the cost of petroleum products, used as inputs for manufacture of goods, due to cascading of taxes.

In the pre-GST regime, because the petroleum products as well as the final goods produced both attracted VAT, input tax credit of petroleum products was allowed to varying extent by different states.

However, in the post-GST scenario, the manufactured goods attract GST while the inputs of petroleum products used in the manufacture attract VAT and, therefore, it would lead to cascading of taxes.

In view of this, in the pre-Goods and Services Tax regime certain states had lower rate of 5 per cent VAT on Compressed Natural Gas (CNG) used for manufacturing of goods.

Some states also had lower rate of VAT on diesel used by manufacturing sector.

"Thus, Jaitley has requested other states also to explore the possibility of having a lower rate of VAT on petroleum products used for manufacturing of those items on which there is GST, so that there is minimum disruption in the costing of goods," it said.
 
Print the Page Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 20 Feb, 2018
  Daily Poll
Is counterfeiting a major threat to SMEs?
 Yes
 No
 Can't say
  Commented Stories
» Starting an import export business: Basic guide for beginners(17)
» New MSME definition(11)
» New Startup India framework launched(3)
» Govt has freed MSME sector from 'inspector raj: Giriraj Singh(2)
» Job seekers protest at Bihar railway stations(2)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter