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.
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.
Despite long-standing interest from Arsenal, Newcastle United's manager, Eddie Howe, is confident that Alexander Isak will remain at the club. The Sweden international recently scored a hat-trick in their match against Ipswich Town, showcasing his goalscoring abilities and attracting more attention from top clubs. However, Howe remains determined to keep Isak and build a successful team around him, with no plans to let him leave anytime soon. Talks of a potential contract extension are also being put on hold for now, as there is no urgency to get a new deal done.
In the 55th GST Council meeting, the latest changes to GST rates were announced for various items. Ready-to-eat popcorn will now have varying GST rates depending on how it is prepared and sold. Pre-packaged popcorn will have a higher GST rate of 12%, while popcorn sold loose will have a lower rate of 5%. In the automotive sector, the GST rate for used cars sold by businesses will be increased from 12% to 18%. Additionally, vouchers will not be considered goods or services, and hence, will not be subject to GST.
During the 55th GST Council meeting, Union Finance Minister Nirmala Sitharaman announced that the Goods and Services Tax on rice kernels has been reduced from 18% to 5%, while life-saving gene therapy will now be exempt from tax. Additionally, parts used in manufacturing surface-to-air missiles will continue to be exempt from GST. However, the tax rate on caramelised popcorn has been increased to 18%, citing its harmful effects on health. The Finance Minister also clarified that payment aggregators will be eligible for exemptions, but this does not apply to payment gateways and fintech services.
In an effort to bring joy and togetherness to the holiday season, Amazon India has announced the 8th edition of its Holiday Toy List. The thoughtfully curated store features over 1.6 million products from more than 10,000 brands, including popular options like LEGO, Hot Wheels, and Hasbro. Director Rajarshi Guin states that the store is focused on elevating the gifting experience for families and gift-givers, making every gift an unforgettable highlight of the season.
Bajaj Auto, the Pune-based motorcycle specialist, has introduced the new 35 Series of the popular Chetak electric scooter with three variants. With a starting price of Rs 1.27 lakh, the feature-loaded 3501 variant aims to compete with its counterparts like TVS iQube, Ola S1, and Ather Rizta in the Indian market. With the customer-friendly delivery schedule, Bajaj Auto is confident to retain its leadership position in the electric two-wheeler segment. This strategic move by the company not only caters to the needs of young riders but also showcases its commitment to providing cutting-edge technology with neo-classic style.
Amidst all the excitement surrounding Trump's U.S. election victory, fund manager Sean Peche is urging investors to take a closer look at Europe. According to Peche, there are some "very attractively priced" companies in the region that have been overshadowed by the Trump euphoria. Peche believes that stocks such as French bank BNP Paribas and Dutch investment bank ABN Amro, with consistent growth and high dividends, are being ignored by investors. He also points out "attractive" stocks in the UK, such as Associated British Foods, which owns retail giant Primark. While political turmoil in France and the UK may raise concerns, Peche remains unfazed and advises against overlooking these opportunities.