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Add petrol, diesel, gas, jet fuel in GST to reduce tax: Dharmdendra Pradhan

Sale and supply of oil, gas and petroleum products continue to attract earlier taxes like excise duty and VAT

Press Trust of India  |  New Delhi 

Dharmendra Pradhan, Pradhan
Petroleum Minister Dharmendra Pradhan

Minister on Tuesday made a strong case for inclusion of natural gas in the Goods and Services Tax, saying that if polluting coal can be included, then the environment-friendly fuel certainly deserves a place in the new regime.

"Coal has been included and levied with 5 per cent but gas is outside GST, how fair is that," he said at the KMPG Energy Summit in New Delhi.


Crude oil, petrol, diesel, (ATF) or jet fuel and natural gas are not included in GST, which has amalgamated over a dozen indirect taxes including excise duty, and since it kicked in from July 1.

Hence, while various goods and services procured by the and gas industry are subject to GST, the sale and supply of oil, gas and petroleum products continue to attract earlier taxes like excise duty and

Unlike other industries which can take credit for any paid towards the furtherance of business, no credits on input will be available to the and gas industry leading to the huge additional indirect burden.

Pradhan's ministry had previously written to the Finance Ministry to consider including natural gas in

Industry body has also pitched for the inclusion of natural gas in the new indirect regime so as to help producers contain cost and aid in moving towards a gas-based economy.

In a letter to Finance Minister Arun Jaitley, said that keeping natural gas out of the is causing hardships and having an adverse impact on the producers as it is increasing their costs.

Gas sales including CNG and piped gas supplies attract ranging from 5-12 per cent.

First Published: Tue, November 28 2017. 15:28 IST
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