Here are five Goods and Services exempted from GST 2017

Lucknow: The government has kept five things – liquor, petrol, diesel, aviation fuel and electricity – out of Goods and Services tax ambit for obvious reasons.

These are the biggest revenue generating things for the state and central governments.

Petrol and diesel already attract 57 per cent taxes inclusive of VAT and other taxes. So, if these fuels are kept in 28 per cent tax slab, it will cause huge losses to the governments.

Union petroleum minister Dharmendra Pradhan and finance minister Arun Jaitley, however, have confirmed that once the state and central governments will start generating proper revenues from taxes on other items, petrol and diesel would also be included in an appropriate GST slab.

Also Read: GST 2017: Know how much tax will be levied on Goods and Services

To include liquor in GST slabs, the government will have to introduce an amendment in Indian constitution. Liquor has not been included in the 122^nd Constitution Amendment Bill related to the GST.

Apart from that liquor is the second highest revenue generating commodity for the state as well as central governments. The finance ministers of different states, who were also the members of GST council, had also given consent to keep liquor out of GST slabs.

The raw materials used in making liquor, however, have been included in GST slabs and will attract 5 to 18 per cent tax, which will increase the input cost.