The Oil Ministry has proposed the elimination of windfall profit tax on crude oil to the Finance Ministry, while also requesting the inclusion of natural gas and petroleum products under the Goods and Services Tax framework. The upcoming GST Council meeting may discuss this proposal, but many states are cautious about including petroleum products under GST due to revenue concerns. Finance Minister Nirmala Sitharaman has emphasized that the GST law already has provisions for this inclusion, and it is now up to the GST Council to reach a consensus on the matter.
Elimination of Windfall Tax and Inclusion of Natural Gas and Petroleum Products under GST: A Proposal by the Oil Ministry
Background:
The Ministry of Petroleum and Natural Gas has proposed several significant changes to the taxation regime for crude oil, natural gas, and petroleum products. These proposals include eliminating the windfall profit tax on crude oil and bringing natural gas and petroleum products under the ambit of the Goods and Services Tax (GST).
Elimination of Windfall Tax on Crude Oil:
The windfall profit tax is a tax levied on the extraordinary profits made by oil producers due to geopolitical events or supply shocks. The Indian government imposed a windfall tax on domestic crude oil production in July 2022, following the surge in global oil prices after the Russia-Ukraine conflict.
The Oil Ministry has now argued that the tax has outlived its purpose and is adversely impacting domestic oil companies. The proposed elimination of the windfall tax aims to boost domestic oil production and reduce the dependence on imports.
Inclusion of Natural Gas and Petroleum Products under GST:
Presently, natural gas and petroleum products are outside the GST framework, which means they are subject to varying rates of taxation across states. The Oil Ministry has proposed that these products be brought under the GST ambit to streamline the taxation system and reduce the cascading effect of taxes.
GST Council Meeting and Concerns:
The GST Council, which is the apex decision-making body for the GST, is expected to discuss these proposals in its upcoming meeting. However, some states have expressed concerns about including petroleum products under GST, as they fear a loss of revenue.
Finance Minister Nirmala Sitharaman has stated that the GST law already has provisions for the inclusion of petroleum products and that the decision will depend on the consensus reached by the GST Council.
Top 5 FAQs and Answers:
To boost domestic oil production, reduce import dependence, and provide relief to oil companies.
To streamline the taxation system, reduce the cascading effect of taxes, and simplify tax administration.
Potential loss of revenue.
The proposals will be subject to the deliberations and decision-making of the GST Council.
Increased domestic oil production, reduced import dependence, and improved efficiency in the taxation system for natural gas and petroleum products.
The GST Council has recently decided to tax all used vehicles, including electric vehicles, at a uniform rate of 18%. This has led to confusion among car owners, who are now worried about the impact on their profits. However, Finance Minister Nirmala Sitharaman has clarified that the 18% tax will only be levied on the profit made from selling the vehicle, not the entire selling price. The video of her explanation has gone viral on social media, providing much-needed clarity to individuals and businesses.
Union Home Minister Amit Shah will lead an event on December 25th to inaugurate over 10,000 Multipurpose Primary Agricultural Cooperative Societies (M-PACS), dairy, and fisheries cooperatives, emphasizing on the significance of the cooperative sector in boosting self-reliance and financial inclusion. The event will feature distribution of registration certificates, RuPay Kisan Credit Cards, and micro ATMs to empower rural communities. With over 1,200 delegates expected to attend, the conference will serve as a platform to strategize strengthening of cooperatives and promoting sustainable agricultural practices. Download Krishi Jagran Mobile App for more updates on the Latest Agriculture News, Agriculture Quiz, Crop Calendar, Jobs in Agriculture, and more.
Indian apparel brand Being Human Clothing has expanded its reach by launching a new store in Chennai at Express Avenue Mall. The store was inaugurated by popular Indian dancer Prabhu Deva, adding star power to the launch. The brand, which supports charitable initiatives through its sales, looks forward to serving the people of Chennai with its stylish and socially responsible clothing options. The store offers a wide range of men's and women's apparel, along with the brand's latest Autumn/Winter 2024 collection. Being Human Clothing is available globally and aims to showcase its offerings to decision makers in the retail, eCommerce, and fashion industries.
The GST Council has decided to simplify the tax rate for the sale of old and used vehicles by prescribing a single rate of 18%, including Electric Vehicles (EVs). This will benefit both buyers and sellers as it streamlines the process and eliminates confusion about different tax rates for different types of vehicles. The update also clarifies that for registered individuals who have claimed depreciation under the Income Tax Act, they only have to pay GST on the margin between the selling price and depreciated value of the vehicle.
A recent data analysis by the Agriculture Ministry has shed light on the widening gap between the terms of trade (ToT) for farmers and agricultural labourers in India. While crop prices have increased by 111.2% over the past two decades, the cost of inputs for farming has risen by 198.1%, resulting in a decline in the ToT for farmers. This has led to a situation where agricultural labourers, who receive only wages and not the profits from farming, are faring better than the farmers themselves. The cost squeeze for farmers is mainly due to rising input costs, and they are unable to pass these on in the form of higher prices for their produce.
As Christmas approaches, consumers are still looking for options to grab a bite, shop for last-minute gifts and get groceries. This article details the operating hours of different stores, restaurants, and other businesses on Christmas Eve. While most will be open, their hours may be adjusted. Customers are advised to check with their local stores for specific information.
Catch up on the latest books, cinema, health, world affairs, and science news with The Hindu's daily e-Paper. With dedicated sections covering books, headlines, cinema, health, world affairs, and science, stay informed and entertained in one convenient newsletter. Plus, get daily news highlights from Karnataka and the top 5 technology stories of the day in Today's Cache.
Category: Technology Title: "Google Reveals Exciting Updates for Android 16 and Set Timeline for Release" Google announces the launch of the second Developer Preview for Android 16, with a confirmed release between April and June 2025. The new preview introduces a range of updates, including enhanced performance tools, advanced accessibility options, and improved security measures. The timeline for the platform's release has been set, with a major SDK release expected in Q2 and smaller updates throughout the year. The updates aim to streamline app development and improve functionality for Android 16.
Rohan Mirchandani, the co-founder of Epigamia, a popular yogurt brand, passed away at the age of 42 due to a sudden cardiac arrest. The senior leadership of Drums Food International, the parent company of Epigamia, confirmed the news and expressed their sorrow. Mirchandani, an alumnus of prominent universities, was a mentor, friend, and leader to many in the startup community, and his death has shocked and saddened them. This comes just a month after the sudden passing of Ambareesh Murty, co-founder of Pepperfry, and earlier this year, the untimely death of Rohan Malhotra, co-founder of Good Capital.
Amid uncertainty and concerns about the displacement of lakhs of Dharavi locals, the controversial Dharavi Development Project has become a major issue in Maharashtra's election politics. The Adani Group's involvement has raised questions about the prioritization of profit over people. With locals taking to the streets to protest the project, The News Minute's Pooja Prasanna investigates the consequences and dynamics underlying the contentious redevelopment.