Chief Economic Advisor K V Subramanian has backed a proposal to bring petroleum products under the ambit of the Goods and Services Tax (GST). He, however, said the decision will have to be taken by the GST council. "It will be a good move, but the decision rests with the GST Council," Subramanian said during a recent interaction with FICCI FLO members.
Petroleum Minister Dharmendra Pradhan had also urged Union Finance Minister Nirmalya Sitharaman to bring petroleum products under the ambit of the GST. Continuous rise in fuel prices has burdened the common man and become a political issue in states where assembly elections are due.
Subramanian also said inflationary pressures are mostly on account of "food inflation".