According to data obtained from the CGA (Controller General of Accounts), the collection of Excise Duty during April-November 2020 increased from Rs 1,32,899 crore in the same period of 2019 to Rs 1,96,342 crore.
- January 17, 2021, 5:58 PM IST
According to data received from the Controller General of Accounts, the collection of excise duty during April-November 2020 increased from Rs 1,32,899 crore to Rs 1,96,342 crore in the same period of 2019. This increase in excise duty collection occurred during the eight-month period of the current financial year, despite a decrease of over one crore tonnes in diesel sales.
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According to data from the Petroleum Planning and Analysis Cell of the Petroleum Ministry, during April to November 2020, diesel sales fell to 49.4 million tonnes from 5.54 million tonnes a year earlier. During this time, the consumption of petrol also decreased from 2.04 million tonnes a year ago to 1.74 crore tonnes.Petroleum products are excluded from the GST system
Petroleum products and natural gas are excluded from the GST system. The GST system has been implemented in the country since July 2017. The central government levies excise duty on petroleum products and natural gas, while state governments levy VAT.
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Industry sources say that despite the slowdown in the economic sector, the main reason for the increase in excise duty collection is the record increase in tax rates on petrol and diesel. The government has increased the excise duty on petrol twice by Rs 13 per liter and on diesel by Rs 16 per liter during the current financial year. With this, the excise duty on petrol increased to Rs 32.98 per liter and on diesel to Rs 31.83 per liter.