Pawar says Centre should release GST compensation so that state govts can reduce VAT on fuel


After the Central government reduced the excise duty on petrol and diesel, NCP chief Sharad Pawar on Friday demanded the release of GST compensation to the states so that state governments can reduce value-added tax (VAT) on fuel.

Speaking to reporters here today, Pawar said, “If the Centre disburses the GST compensation to all the states, then it is possible for the state governments to reduce the VAT on petrol and diesel and implement other welfare schemes.”

Pawar’s remarks came after the Finance Ministry on Wednesday announced a Rs 5 per litre cut in excise duty on petrol and a Rs 10 per litre cut in excise duty on diesel. Amid record-high fuel prices, this is the first cut in central excise duties in over three years.

The NCP chief also confirmed that Deputy Chief Minister Ajit Pawar’s driver and other staff have been tested positive for COVID-19. “As a precautionary step, the doctors have asked Ajit Pawar to remain in home isolation for a few days,” he added.