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The Petroleum products in India will be included in the Goods and service Tax (GST), but only after agreeable by State governments. The decision was made when the Union Petroleum Minister Dharmendra Pradhan said in the parliament’s question hours that, “In principle, petroleum products should come under the GST ambit, but a final decision will be taken on by state government.”

According to the committee on GST headed by Chief Economic Advisor Arvind Subhramanian, which submitted their report last week, recommended inclusion of alcohol and petroleum products both in GST.

However, 32 percent tax by central government and 20 percent tax by state government is been levied on petroleum products. The revenue collected from tax will be used only for the infrastructure committed by Petroleum Minister Pradhan.