Ahead of Gujarat polls, GST on 178 items reduced but Petrol, Diesel still not included under new tax regime

Barely 28 days before PM Modi’s home state Gujarat goes into polls, BJP-led Union government reduced the Goods and Service Tax (GST) on 178 items from 28 per cent to 18 per cent.

Union Finance Minister and BJP’s Gujarat Poll-in-Charge Arun Jaitley on Friday announced the new recommendations after the meeting of all-powerful GST Council in Guwahati.

The rate slash was highly anticipated for the fact that Opposition Congress was using higher GST rates as a weapon to counter BJP in next month’s assembly elections in business state Gujarat.

However, the GST Council didn't give any relief to the vehicle users and kept petroleum products out of GST ambit.

Vehicle users were harbouring hopes that the government may bring petroleum products under GST to save people from rising fuel prices.

States, mostly governed by Congress party have also been demanding the inclusion of Petrol and Diesel under the ambit of GST.

Also Read: GST rates on 178 items reduced, here is the full list

Some of the BJP leaders were also of the same view and Bihar Deputy CM and BJP leader Sushil Modi has even expressed his “personal opinion” to bring petroleum products under the new tax scheme.

Oil Minister Dharmendra Pradhan had also requested the Ministry of Finance to bring petroleum products under the ambit of Goods and Services Tax (GST) in the interest of consumers.

International crude oil prices have halved in the past three years since Narendra Modi-led BJP govt came in the power.

Despite the fact, Petrol and diesel prices in India have surged sharply and the reason behind it was higher state and Centre government taxes.