The Maharashtra government may oppose the move to put petroleum products like diesel and petrol under GST. Deputy chief minister Ajit Pawar said that the Centre should reduce its taxes, but it will oppose any attempt by the centre to reduce the state’s taxes on products. Pawar is also the state’s finance minister.

“We are hearing in hushed voices that petrol and diesel could be brought under GST. However, we have not been told about this unofficially. If tomorrow this question comes up, then our finance department would articulate our stand. My view is that the centre should look into its taxation and the power given to states to tax products should not be encumbered in any manner,” said Pawar hinting that the state would not like diesel and petrol to brought under GST.

“Our rights should not be taken away; revenue streams of states should not be affected.”

Pawar said if there is any move in the GST council that affects the state’s power on taxation, then it would be opposed, adding whatever commitments were given “on the floor of the Parliament during the GST discussion should be honoured”.

“When the GST was being debated in the Parliament, the centre had assured that the states’ right to taxation would not be taken away. If any decision is taken to curb the state’s right to taxation in the GST meeting (tomorrow), then the state would oppose it. We are not against reforms. However, the state’s revenue streams should not be affected,” he said. Pawar said the state was getting revenue only from levying stamp duty and VAT on petroleum products.

Incidentally, while presenting the state’s budget earlier in March this year Ajit Pawar had said on the floor of the state assembly that the state would support the centre’s move to bring petrol and diesel under GST.

Pawar again reiterated that the state has still not been given its GST dues of ₹32,000 crores by the centre yet.