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Centre must release GST compensation for states to reduce VAT on fuel, says Sharad Pawar

In a statement, Sharad Pawar said, "If the Centre disburses the GST compensation to all the states, then it is possible for the state governments to reduce the VAT on petrol and diesel and implement other welfare schemes."   

India TV News Desk Edited by: India TV News Desk
New Delhi Published on: November 05, 2021 23:32 IST
NCP chief Sharad Pawar
Image Source : PTI

NCP chief Sharad Pawar

After the Central government reduced the excise duty on petrol and diesel, Nationalist Congress Party (NCP) chief Sharad Pawar on Friday demanded the release of GST compensation to the states for them to reduce value-added tax (VAT) on fuel. His remarks come days after the Central government reduced the excise duty on petrol and diesel.

In a statement, Sharad Pawar said, "If the Centre disburses the GST compensation to all the states, then it is possible for the state governments to reduce the VAT on petrol and diesel and implement other welfare schemes." 

On Wednesday, the Ministry of Finance had announced cuts in excise duty on petrol and diesel prices by Rs 5 and Rs 10 per litre respectively. As fuel prices touched record highs, this is the first cut in central excise duties in over three years. 

Several BJP-ruled states have announced additional cuts after the Centre's Wednesday announcement. These include Karnataka, Puducherry, Mizoram, Arunachal Pradesh, Manipur, Nagaland, Tripura, Assam, Sikkim, Bihar, Odisha, Madhya Pradesh, Goa, Gujarat, Dadra & Nagar Haveli, Daman & Diu, Chandigarh, Haryana, Himachal Pradesh, Jammu & Kashmir, Uttarakhand, Uttar Pradesh and Ladakh.

Rajasthan, Punjab, Chhattisgarh, Maharashtra, Jharkhand and Tamil Nadu, Delhi, West Bengal, Kerala, Telengana and Andhra Pradesh are yet to announce additional benefits.

(with ANI inputs)

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