Fuel prices have been soaring to new highs in recent times. As per current system, centre levies Rs 19.48 per litre of excise duty on petrol and Rs 15.33 per litre on diesel besides state levied VAT (Value Added Tax).
With increasing opposition from public, Centre hinted at bringing petrol and diesel under GST. Today, government revealed that 28 per cent GST is likely to be levied on Petrol and diesel. However, states will continue to levy local sales tax or VAT on petrol and diesel. With this total tax on petrol comes to 45-50 per cent and 35-40 per cent on diesel. Telangana levies VAT of 26 per cent on diesel.