Andhra Pradesh

Andhra Pradesh government opposes GST cover on fuel

VIJAYAWADA: The AP government has opposed the central government’s proposal to include petrol and diesel under the GST (Goods and Services Tax) framework. At the 45th GST Council meeting in Lucknow on Friday, finance minister Buggana Rajendranath said AP has been opposed to the move right from the beginning.


Asking the Centre and the GST Council to honour the states’ rights under the federal structure, he said the revenues of the states under GST regime do not match the revenues under VAT. “The states have lost over 5% of revenue because of GST. While earlier the revenue used to witness an average annual growth of 14-15%, under GST it has stayed around 10%. The last two years also saw a fall in tax revenues due to the pandemic,” he said, while urging the Centre to provide additional funds in the form of compensation to support the states.


The finance minister further stated that as per existing notifications and the proposals of the fitment committee constituted by the GST Council, the rate of tax applicable to polished napa stone is 18%. Pointing out that for similar low-end stones produced in other states, such as Kota stone of Rajasthan, the tax rate is 5% except those with mirror finish, he called for GST to be reduced on napa slabs on par with Kota stone. — Gopi Dara

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