Kotte Murali Krishna
Quick Summary
The cess on petroleum products paid by a manufacturing company to the transporter of input goods becomes part of the cost of sales, as it cannot be claimed as Input Tax Credit (ITC). This cess is further added with other costs, and GST is levied on the total amount. As a result, the final cost of th
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FAQ :
The cess paid on petroleum products by manufacturers becomes part of their cost of sales and cannot be claimed as Input Tax Credit (ITC). This, along with other costs and GST, can increase the final price of the product by up to 150% of the original cess amount.
The increased cost due to fuel cess directly reduces consumer purchasing power, meaning people have less money to spend on other goods and services.
Including petroleum products under GST would eliminate the cascading tax impact and allow businesses to claim input tax credit, providing relief to both companies and consumers.
For every ₹30 lakhs of cess on diesel paid by manufacturers, end consumers end up bearing an additional cost of ₹16.02 lakhs.
The article appeals to the government to bring the cess on petroleum products under the GST framework and allow it to be claimed as Input Tax Credit to protect consumers' money and boost the economy.
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