States against petro products, liquor in Goods and Services Tax

Several states on Monday opposed inclusion of petroleum products and liquor in the proposed Goods and Services Tax (GST) regime as the move would severely affect their revenues. This came out at the meeting of the Empowered Committee of State Finance Ministers that deliberated the revised draft of the Constitutional Amendment Bill for introduction of new indirect tax regime, among other things.

Some states also expressed their reservation to inclusion of 'entry tax' in the GST fold. While the centre wants liquor and petroleum products should come under the GST, states are keen to retain their power to tax these items as they are major sources of revenue.

"Most of the states...majority of the states have opposed bringing petroleum products and liquor in GST framework. They want to keep (the two items) out of GST," Empowered Committee chairman and Jammu & Kashmir finance minister A R Rather told reporters after the meeting. He did not provide names of states opposing the move. Only 10-12 state finance ministers, he said, could present their views due to "paucity of time" and the remaining states would get chance in the next meeting scheduled in the around November 15. (PTI)