Not possible to bring petrol, diesel in GST regime even for next 8-10 years: Sushil Modi
New Delhi, Mar 24: Bringing petrol and diesel under the GST regime is not possible for the next 8-10 years as no state is ready to face the annual revenue loss of over Rs 2 lakh crore on this account, BJP member Sushil Kumar Modi said in Rajya Sabha on Wednesday.
Speaking in support of the Finance Bill, the former finance minister of Bihar dared the opposition to raise the matter in the GST Council, saying no chief minister or finance minister from non-NDA ruled states has opposed any decision of the GST Council.
The Centre and states collectively collect over Rs 5 lakh crore tax on petroleum products, Modi said.
The statement assumes significance in view of the outcry over the rise in petrol price for the past over one year that touched Rs 100 per litre in some states and the demand by the Congress and some other parties that petrol and diesel be brought under the GST regime.
Finance Minister Nirmala Sitharaman had on Tuesday said in Lok Sabha that she would be "glad" to discuss the suggestion of bringing petrol and diesel under the ambit of the Goods and Services Tax at the next meeting of the GST Council.
Sushil Modi said it is easy for opposition leaders to make statements outside, but no one raises these issues within the GST Council.
"Repeatedly, the issue of putting petrol and diesel in the GST regime is being raked up. I have been associated with the GST for a long time, I want to know from the House, that if petrol and diesel are put under the GST regime, who will compensate for the loss of revenue of over Rs 2 lakh crore to states," he asked.
"I want to tell this House that it is not possible to put petrol and diesel under the GST in the next eight to 10 years, as no state is ready to lose Rs 2 lakh crore revenue, be it the Congress or any other government," he said.
He said the Centre and states together earn over Rs 5 lakh crore annually from tax on petroleum products.
"People in the opposition make fun of the GST regime and someone has also said it is 'Gabbar Singh Tax'. If you have the courage....all states have a presence there ... (Congress-ruled) Chhattisgarh or Rajasthan, no chief minister or finance minister has ever opposed the GST structure.
"It is easy to make statements outside, but you need courage as displayed by Narendra Modi to implement the GST. Had there been any other prime minister, he would not have been able to implement the GST," Sushil Modi told the House.
He explained that if petroleum products are brought under the GST, 28 percent tax would be collected on them as that is the highest slab in the tax regime.
"Presently, 60 percent tax is being collected on petroleum products. This would result in a shortfall of Rs 2 lakh crore to 2.5 lakh crore (to both the Centre and states)," he explained in the House.
"If we collect 28 percent tax on petroleum products, then only Rs 14 would be collected (per litre) against Rs 60 at present," he pointed out.
"If petrol or diesel price is Rs 100 (per litre) then the tax component is Rs 60 which includes Rs 35 for Centre and Rs 25 for respective states. Besides out of the Rs 35 tax per litre, 42 percent goes to states," Modi added.
He also slammed those casting doubts on the use of revenue generated from diesel and petrol, stressing that the money is used for development activities.
"It is said that the tax collected on petrol, diesel goes into the pocket of the government. There is no separate pocket of the government. From where will the money come for providing electricity and tap water to all households. The spending of tax collection on the welfare of the country is being challenged," the BJP leader lamented.
Sushil Modi had been the convener of the GST Council in his capacity as the finance minister of Bihar for a long time.
In the first reduction in rates in over a year, petrol price on Wednesday was cut by 18 paise per litre and diesel by 17 paise per litre as international oil prices tumbled to the lowest since early February.
Petrol price was cut to Rs 90.99 per litre in Delhi from Rs 91.17 per litre. Diesel now comes for Rs 81.30 a litre in the national capital, down from Rs 81.47 previously. Rates have been reduced across the country and vary from state-to-state depending on the local incidence of taxation (VAT).
The prices were last reduced on March 16, 2020.
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Inappropriate for MLAs seeking free IPL tickets, says D.K. Suresh
Bengaluru: Bengaluru Milk Union Ltd President D.K. Suresh on Monday said it is inappropriate for MLAs to seek free IPL tickets, adding that those interested in watching matches should pay for them personally.
Speaking to reporters near his residence in Sadashivanagar, he said, “IPL is a commercial tournament and does not represent the country. It is not right for public representatives to focus too much on such matters.”
Referring to the recent controversy during the RCB celebrations, he said, “let us find out who benefited the most from the statements made during the incident.” He also pointed out that BJP MLAs had received IPL tickets as well.
Responding to discussions about relocating the Chinnaswamy Stadium, Suresh said the government has already approved the construction of a new stadium at a location he had proposed.
“I had suggested building a stadium in Surya City and submitted a proposal for it. Bengaluru needs four stadiums in four directions to cater to its growing population and encourage youth participation in sports,” he said.
He noted that apart from Kanteerava Stadium, KSCA, and the Football Stadium, there are limited facilities in the city.
“When I was a Lok Sabha member, I had proposed allocating 100 acres in my constituency at Surya City. The land was later earmarked and the plan approved,” he added.
Suresh said he has discussed the project with Minister Zameer Ahmed Khan, Rajiv Gandhi Housing Corporation Chairman Shivalingegowda, and Anekal MLA Shivanna.
“The Cabinet has now approved the project, and a stadium will be developed on around 50–60 acres,” he said.
He further added that he has requested the Deputy Chief Minister to build another stadium at Shivarama Karanth Layout through the BDA, where 40 acres have been allocated. Plans are also being discussed to develop a well-equipped stadium in Bidadi.
Commending state government's recent bilingual policy move, Suresh said forcing children to learn three languages could affect their comprehension.
“It is a good decision to make two languages compulsory. Learning a third language should be left to the choice of students and parents,” he said.
Responding to criticism from BJP leaders, he said their tendency is to oppose every decision of the government.
“To please their central leadership, they take a pro-Hindi stance. Instead, they should advocate for the adoption of Kannada in all states,” he said.
When asked about the earlier three-language policy under Congress, he said, “the situation is different now. Today, the focus should be on quality learning. Kannada should remain the primary language, while students and parents can choose an additional language.”
