BJD MP Sasmit Patra met Union Finance Minister Nirmala Sitharaman, urging structured national deliberations on including petrol and diesel under GST, citing economic conditions and the impact of high fuel prices on inflation and various sectors.
Biju Janata Dal (BJD) MP Sasmit Patra met Union Finance Minister Nirmala Sitharaman and submitted a detailed follow-up representation urging the initiation of structured national deliberations on the inclusion of petrol and diesel under the Goods and Services Tax (GST) framework.
In his representation, Patra on Wednesday emphasised that the constitutional framework under Article 279A(5) already envisages the eventual inclusion of petroleum products within GST through the recommendation of the GST Council. He noted that while the matter had previously been deliberated upon in the GST Council following directions of the Kerala High Court, prevailing economic conditions now warrant a fresh, pragmatic and consultative reconsideration of the issue.
Economic Rationale for GST Inclusion
As per the release, Rajya Sabha MP Patra highlighted that fuel prices directly impact inflation, transportation and logistics costs, agricultural input costs, MSME operating expenditure and household consumption patterns across the country. He underlined that interstate disparities in VAT structures continue to dilute the objective of tax harmonisation and market integration envisioned under GST.
A Balanced Framework to Address Revenue Concerns
Drawing attention to Odisha’s economic profile as a major mining, industrial and logistics-intensive State, Patra observed that calibrated GST inclusion of petrol and diesel could significantly reduce freight and supply-chain costs, improve industrial competitiveness and provide substantial economic relief to ordinary citizens, farmers, transport operators and MSMEs. At the same time, he acknowledged the legitimate concerns of States regarding revenue stability arising from petroleum taxation and therefore advocated a balanced and phased framework rather than immediate unconditional inclusion.
Proposals for Phased Integration
He proposed that the GST Council may consider a calibrated GST slab structure, transitional compensation support for States, a limited revenue-protection cess mechanism and a formula-based fiscal stabilisation framework during the transition period. Patra further requested the Finance Minister to facilitate broad-based consultations with all States and consider constituting a technical and fiscal working group to examine implementation models and build national consensus on phased integration of petroleum products within the GST architecture. (ANI)
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