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Economist Argues Middle East Conflict Makes GST Inclusion of Petrol, Diesel Imperative

The Middle East conflict has amplified the urgency to include petrol and diesel under GST to mitigate rising crude oil prices and inflation. Overcoming state revenue concerns remains a key challenge for implementation.

💡 Key Fact

Middle East tensions have pushed India's crude oil basket to $120.84 per barrel, a 75% increase since February, renewing calls for GST inclusion on petrol and diesel.

Background

Currently, petrol and diesel are outside the GST regime, subject to central excise duties and state VAT, leading to price variations and higher costs for consumers. The ongoing Middle East conflict is exacerbating inflationary pressures and import costs for India.

Source: NDTV Profit

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