Petrol and diesel

not only petroland deisel, tobacco, liquor are out of purview of GST


because it generates high revenue for the states. This is very similar to the case of petroleum.

Just like the case of petroleum, many experts feel that it is not a good idea to exclude alcohol from the purview of GST. The biggest problem in any such thing is that it affects the seamless transfer of credits. Beauty of GST lies in the fact that there will be seamless flow of all sorts of taxes, and that there will be uniformity between various states and various products.

Under these circumstances, it makes no sense to introduce exemptions and exceptions over every such small aspect. This problem was huge in case of petroleum where the transcendental impact is huge - because petroleum affects almost all the businesses in the country. Even in case of alcohol, this problem will remain. In my view, therefore, inclusion of all the products in GST should be our priority and that too, with the least amount of exemptions.