Uniform Petro Tax may Not Remain a Pipe Dream States agree to cap VAT on natural gas at 5%, lower it on other petro goods for industry States have agreed to cap value-added tax (VAT) on natural gas at 5% and lower it on other petroleum products such as petrol and diesel used by the manufacturing sector as an input. That could mark a significant breakthrough toward uniform nationwide prices of petroleum goods. The Goods and Services Tax (GST) Council will take up the scheme once it is formulated by the states. “The council will take a final call on the proposal,” a senior government official told ET. “There have been discussions between the Centre and states at the officials’ level.” The council had previously discussed the issue and it was decided to ask the states to work out a scheme. Another government official said the ball was in the states’ court. Petroleum products aren’t covered under GST. The Centre had been keen to bring petroleum products under ambit of GST, which was im