Delhi Proposes Exclusion of Diesel, Petrol and Healthcare from New India GST

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Aug. 4 – The New Delhi government is proposing that diesel, petrol, compressed natural gas and health care services be excluded under India’s new Goods and Services Tax (GST) scheduled to be implemented next year.

“Several other states have also supported our view to keep petroleum products and CNG out of the ambit of GST. We will also request for excluding healthcare services from GST,” said Delhi Finance Minister A.K. Walia.

The Delhi government thinks that including petroleum and gas products under the India GST will mean further revenue losses for the city already spending on the upcoming Commonwealth Games.

GST in India is set to combine central and state taxes into one rate, thus simplifying the tax process.  The new tax regime was delayed by one year to April 1, 2011 after several states protested the new terms. GST revenues will be split between the national and local governments.

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