Context: According to SBI Research Report, bringing petrol and diesel under the GST regime could lead to a loss of as little as Rs. 1 lakh crore in annual revenue for the Centre and States while bringing pan-India prices of the fuels to Rs. 75 and Rs. 68 a litre, respectively.

Details:

• Assuming a GST rate of 28%, cess of Rs. 30 and Rs. 20 for a litre of petrol and diesel respectively, crude oil price of $60 per barrel and a rupee-dollar exchange rate of 73, SBI Research has reckoned the Centre and States would, together, face a revenue deviation from Budget estimates of only Rs. 1 lakh crore, or 0.4% of the GDP, in FY22.
• The report has adjusted for a rise in consumption if the fuel prices are reduced and assumed a 10% growth in petrol and 15% rise in diesel consumption in 2021-22.

https://www.thehindu.com/todays-paper/tp-business/fuel-prices-to-drop-if-brought-under-gst-says-sbi-research/article33993088.ece

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