Quick Summary
The petroleum dealers in the State are urging both the Central and State governments to adopt a uniform tax regime, such as the Goods and Services Tax (GST), across the country. This plea comes after a peaceful protest by a group of dealers from certain North Indian States, who have put forth various demands including this one. The call for uniform taxes is rooted in the idea that it would eliminate the need for consumers living near State borders to travel to neighboring States to purchase f
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
1 Year PLAN
1999
(Excl. of GST ₹359)
BEST VALUE
2 Years PLAN
3499
(Excl. of GST ₹629)
View all CCI PRO benefits
Already a PRO member? Login here for an ad-free experience.
FAQ :
The petroleum dealers are urging the government to implement a uniform tax regime, such as the Goods and Services Tax (GST), across the country.
A uniform tax regime would eliminate price variations between states, preventing consumers near borders from travelling to neighbouring states for cheaper fuel, and benefiting both consumers and dealers.
Dealers feel that the current operating cost allowance of 34 paise per litre is insufficient to cover expenses like internet, local taxes, and salaries, especially for those selling less than 110 kilo litres per month.
The committee, in 2016, suggested that dealers would need to sell 170 kilo litres per month to break even, with recommendations for margins to be adjusted every six months.
Challenges include the competitive market, a high number of retail outlets nationwide (around 86,000), and the establishment of new outlets in close proximity, which makes it difficult for low-volume dealers to sustain growth.
CAclubindia
