GST is a well thought mechanism by the Government of India and the states, they developed the GST Council... "There are two kinds of taxes (on petroleum products). One is the central excise and the other one is state VAT. That is the reason we are expecting uniform tax mechanism from the industry point of view," Pradhan told PTI.
Justifying the daily price mechanism which is in place for petrol and diesel, Pradhan said states are getting 42 per cent share in whatever levy is being collected by the Centre and clarified domestic rates are determined by international prices.
"There is no communication gap or mismatch (between domestic and global prices). Whatever is the international price we are passing exactly that to the Indian consumer. When it is increasing, we have to increase, when it is declining we have to decrease it. That is the practice in the country." The minister for petroleum and natural gas said, "42 per cent of the central tax is coming to states. And states have their own tax mechanism.
So a substantial portion of tax collection is utilised and coming to the states." He said the Centre needs funds for implementing various development and welfare projects in the country.
Replying to a query, he said the second round of auction of oil and natural gas blocks received a good response from both international and domestic players.
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