Amidst reports that natural gas would brought under the GST, Andhra Pradesh state government made a strong statement that it opposes the move to bring natural gas within the ambit of the GST. It said that the proposal would further make the state lose substantial revenue.
Referring to several news reports, AP Finance Minister Yanamala Ramakrishnudu said the proposal was not even circulated to the states. In a statement, Yanamala also opposed any move to include any petroleum product under GST. Issuing of statements by the officials of the council on such sensitive policy issues cannot be accepted, he said.
Andhra Pradesh secured a revenue of Rs 523 crore on sale of natural gas in 2017-18. “Being a producer of the natural gas, AP would lose substantial revenue if the gas is included in GST ambit as our ultimate consumption is lesser than the production,” Ramakrishnudu said.
“The state has already lost autonomy in raising fiscal resources with the introduction of GST. Now, inclusion of natural gas in GST will further affect the revenue position. For this reason, we oppose inclusion of other petroleum products also under GST,” the state finance minister added.
Yanamala claimed that the group of ministers, constituted by the GST council to deliberate on various issues and make recommendations, was issuing statements to the media before they were put up in the council.
“Such press briefings are creating confusion in the minds of traders and other tax payers as they are getting the impression that they are the decisions of the council, he said, adding, all these issues were addressed to the chairman of the GST council for appropriate action.