GST Effect: What happens to Petrol and Diesel Prices?

The Government of India has implemented the historic Goods and Service Tax (GST) from July 1, 2017. But the petroleum products have been kept out of the new tax regime.

Union Civil Aviation Minister Ashok Gajapati Raju stated that the petroleum products such as petrol, diesel and aviation turbine fuel had been kept out of the GST for now. The GST Council will come to a decision later.

Gajapati Raju said, "We have to keep the Civil Aviation Sector at the side for a moment because the states didn't want the petroleum products and the intoxicants to come under the GST. So, there will be no advantages for this sector."

GST has made a significant impact on the automobile industry. Especially, the hybrid cars and transport vehicles will be pricier with the new taxation policy. Several automakers have opposed the move and urged to reduce the tax rates, but GST council did nothing.