Chennai: The Madras High Court has directed the Centre to respond within four weeks on a Public Interest Litigation (PIL) filed for bringing petrol and diesel under the Goods and Services Tax (GST).
The first Division Bench of the Madras High Court comprising Acting Chief Justice D. Krishnakumar and Justice P.B. Balaji on Wednesday directed the Centre to respond within four weeks on the petition.
A Chennai-based advocate C. Kanagaraj had filed the PIL seeking a direction to the Centre to tax petrol and diesel under the Goods and Services Tax (GST) regime and consequently, ensure uniform prices for the two commodities across the country.
The lawyer in his plea insisted upon the reduction of the fuel prices and maintaining uniformity across the country.
The imposition of GST on petroleum products has remained a contentious issue as the state governments earn considerable revenue through the imposition of independent taxes on the sale of those products.
The BJP-led Centre has indicated its interest in bringing petrol and diesel under the common tax regime, which could ensure the same rate across the country. However, the state governments are not interested in the proposal as it would lead to a huge revenue drain for the states.
Section 9(2) of the Central GST Act of 2017 states that the GST on the supply of petroleum crude, high-speed diesel, motor spirit or petrol, natural gas, and aviation turbine fuel would be levied with effect from such date as may be notified by the government on the recommendations of the GST council.
However, the Centre has so far not notified the date due to a lack of consensus from the state governments.
The PIL petitioner, C.Kanagaraj had claimed that there would be a considerable drop in the prices of petroleum products if they were brought under the GST cover and that consumers would stand to benefit.
