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No plans for fuel inclusion under GST: Finance Minister Nirmala Sitharaman

Fuel prices are going high each day. Earlier it was said that there maybe proposals to include fuel under GST. And such a step could have served a little solace to the commons. But amid record-high fuel prices, Finance Minister Nirmala Sitharaman has now said that there is no plan to bring crude oil, petrol, diesel, jet fuel (ATF) and natural gas under the Goods and Services Tax (GST).

GST was introduced on July 1, 2017 as to amalgamate over a dozen central and state levies. But five commodities; crude oil, natural gas, petrol, diesel, and aviation turbine fuel (ATF)  were exempted from GST as both the central and state governments depend on these for revenue generation. This meant that the central government levied excise duty on them while state governments charged VAT. These taxes, particularly the excise duty have been raised periodically.

With high taxes and spike in global oil prices on demand recovery has pushed petrol and diesel to an all-time high, leading to demand for them come under the GST. “At present, there is no proposal to bring crude petroleum, petrol, diesel, ATF and natural gas under GST” said Sitharaman.

She also said that the GST council has not made any recommendation for inclusion of these goods under GST so far. The Council may consider adoption of a plan to include these five petroleum products along with the revenue implication.


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