No proposal at present to include petroleum under GST: Sitharaman

FM says GST Council will take it up after considering revenue impact

Amid rising fuel prices, finance minister Nirmala Sitharaman on Monday informed Parliament that there is no proposal at present to include petrol, diesel and three other fuels under the goods and services tax.  

“At present, there is no proposal to bring crude petroleum, petrol, diesel, ATF and natural gas under GST,” she said in a written reply in the Lok Sabha.

She said inclusion of these products in GST will require recommendation of the GST Council.

"So far, the GST Council, in which the states are also represented, has not made any recommendation for inclusion of these goods under GST," she pointed out.

The Council may consider the issue of inclusion of these five petroleum products at a time it considers appropriate keeping in view all the relevant factors including revenue implication.

The finance minister told the lower house that the Constitution provides that “Goods and Services Tax” means any tax on supply of goods, or services or both except taxes on the supply of alcoholic liquor for human consumption. "Thus, supply of above petroleum products is not excluded from the purview of GST," she added.

Article 279 A (5) of the Constitution prescribes that the GST Council shall recommend the date on which the goods and services tax be levied on the five products cited above, she said.

Meanwhile, minister of state for finance Anurag Thakur said in response to another query that in 2020, central excise duty, including basic excise duty, cess and surcharge, on branded petrol increased from Rs 21.16 per litre in January 1-March 13, 2020 to Rs 34.16 a litre in May 6-December 31, 2020.

"The excise duty rates have been calibrated to generate resources for infrastructure and other developmental items of expenditure keeping in view the present fiscal position,” Thakur said.