Overview

• In interviews on September 5, the finance minister said petrol, diesel and alcohol will remain outside GST "not in the immediate future."
• She clarified that the GST law permits inclusion of these items, but any change depends on state consensus in the GST Council on suitable rates.
• Fuels and liquor were excluded at the 2017 rollout because VAT and excise provide critical revenue for states and the Centre.
• Earlier this week, the 56th GST Council meeting approved wide-ranging rate cuts and endorsed a three-slab structure of 5%, 18% and 40%.
• She also ruled out restoring input tax credit for under-construction real estate, keeping the 5% levy without ITC despite developers’ demands.