INDORE: The Madhya Pradesh government here today made it clear that petroleum products will not be brought under the ambit of Goods and Services Tax ( GST ). "The total commercial revenue that we get from petroleum products is about 35 per cent of the total tax (commercial) that government collects. "Therefore, it is difficult for us to bring it under the GST as we need funds for running the government, development and to fulfill our social obligations," state Finance Minister, Jayant Mallaiya told reporters.However, the minister, who admitted that the rate of tax (VAT and entry tax) on petroleum products in the state is on the higher side also gave a justification for it. "States like Gujarat and Maharashtra get sufficient revenue from industrial production, but it was not the case with Madhya Pradesh as industrial activities are less here. "Madhya Pradesh will get lot of benefit with this new tax regime because it is located centrally.

Source: Economic Times August 12, 2017 12:45 UTC