Eatala Rajender finance minister of Telangana said that the state would suffer petrol & diesel under the ambit of Goods and Services Tax (GST).
The Telangana minister differs with some of the terms of reference issued by the 15th Finance Commission. He said,”This (bringing petrol and diesel under GST) is not a correct decision. It would hurt the federal spirit of our country. If these products are brought under GST, state finances will be further reduced.”
He added that the liquor also should not come under GST. On the current prices of petrol & diesel hovering above 80 and 70 respectively, instead of suggesting to states to reduce VAT on products, Centre should cut excise duty and bring prices down. Most of the welfare schemes are implemented by states. We request the central government to reduce central excise, which has been continuously increased.”