The move came after Oil Minister Dharmendra Pradhan urged state governments to reduce the tax burden on consumers.
Find out more details below.
Now, MP reduces VAT on fuel products
Centre takes the initiative to relieve consumers
Subsequently, Pradhan asked every state, which has different VAT rates on fuel, to reduce 5% VAT for the benefit of consumers. He also said that some states levy 24-26% VAT on fuel.
Following Centre's directive, many states followed
After the Centre gave this directive, Maharashtra reduced petrol and diesel prices by Rs. 2 and Rs. 1, respectively.
Delhi and Kerala which were at the forefront for demanding a cut in duties might be the next.
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Will fuel be included under GST?
As some states showed a coordinated response to the Centre's directive of reducing VAT on petroleum products, it raised expectations that these products might soon be included under the goods and services tax (GST) ambit.
Pradhan, who supports the inclusion, asserted that such a decision will be taken by centre-state consensus.
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