VAT in Fuels has been deducted in Maharashtra and Gujarat.

Gujarat and Maharashtra governments have been responding to criticism that there is no reduction in fuel prices in BJP-ruled states. In Maharashtra, the reduction of value added tax (VAT) in petrol and diesel prices has been implemented . Rs 2.93 is reduced from a liter of petrol and Rs.2.72 is reduced from a liter of diesel. Updated price for petrol is Rs 66.53  and diesel is Rs 60.77 per liter.Gujarat Chief Minister Vijay Rupani said that the government will have a revenue loss of Rs 2,316 crore by cutting taxes. Chief Minister Devendra Fadnavis said the state government would lose Rs 2,600 crore in tax revenue.The Madhya Pradesh government is also contemplating lowering the tax.The Union Petroleum Minister Dharmendra Pradhan requested the states to exempt tax on fuel prices. Gujarat is the first state to reduce fuel taxes at the Center’s direction.The states do not accept the central government’s stand that petrol, diesel and other petroleum products should be brought under the tax and service tax (GST). Petrol and diesel are currently out of reach of GST. The excise duty of the government is 23 per cent. The remaining 15 to 34 percent taxes are state governments. In Delhi, 27% of the cost is charged for 31.8% of petrol and 24.5% for diesel. VAT was 24 percent in Gujarat and 47 percent in Maharashtra.

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