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What if the fuels come under the GST?

What if the fuels come under the GST?

The fuel prices are touching sky limits and there is no sign of coming down of these high costs. On the month of September the prices of-of petrol and diesel have been increased several times by the government and the Indians getting price highest of 87 to 88 rupees and diesel prices have been touched up to 76 to 77 rupees in some parts of India ,the lowest price which is observed is up to 82 to 83 rupees and in diesel 72 to 73 rupees.

Do you know how much government collect the amount of money from the fuel taxes?

Let us know how the government put taxes in fuel that you have to pay almost more than 80% of the tax on fuel which is the highest amount of taxable product.

The fuel prices are decided by the three things in any country.

  • The international fuel prices

  • The dealership price

  • The taxes.

Now coming to the most important part the tax what you pay for the petrol take an example the original price of petrol which dealer purchase is about 39 rupees and the commission in this price which dealer takes is about 4 rupees now we have the total of 42 rupees, Now in this 42 rupees there are all prices have been included like the refining cost, the dealership cost without any taxes.

Now the government includes the tax in the total of 42 rupees petrol

Excise duty of 19.50 rupees.

Value added tax (VAT) of 16.50.

Now combining both the taxes and adding we get the total of 36 rupees now this 36 rupees of tax is added in 42 rupees which makes the total price of petrol 78 rupees that an Indian have to pay for the price of the petrol, which is almost above 80% of tax.

Now if the government add the fuel prices under GST which is Goods and  Service Tax the maximum tax that government could take is 28% per cent which is 11 rupees of 42 rupees of total expenditure of petrol if they do so than the price of petrol would be 52 rupees only same goes with the diesel, CNG, LPG.

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