Levy of GST on petroleum products to require recommendation of GST Council

Article 279A (5) of the Constitution provides that Goods and Services Tax Council shall recommend the date on which goods and services tax shall be levied on petroleum crude, high-speed diesel, motor spirit, natural gas and aviation turbine fuel.

The prices of petroleum products in the country are benchmarked to international product prices. Generally, the prices of sensitive petroleum products in the country are higher/lower than other countries due to various factors, including the prevailing tax regime and subsidy compensations by the respective Governments.

The details of prices of petrol and diesel at Delhi and Mumbai are available at Petroleum Planning and Analysis Cell (PPAC) website i.e. www.ppac.org.in.

Article 279A (5) of the Constitution provides that Goods and Services Tax Council shall recommend the date on which goods and services tax shall be levied on petroleum crude, high-speed diesel, motor spirit, natural gas and aviation turbine fuel. Thus while, petroleum products are constitutionally included under GST, the date on which GST shall be levied on such goods shall be as per the decision of the GST Council. As per section 9(2) of the CGST Act, the inclusion of all excluded petroleum products, including petrol and diesel in GST will require the recommendation of the GST Council.

All the States and Union Territories (UT) with Legislature are represented in the GST Council by their Minister-in-charge of Finance or Taxation or any other Minister nominated by the State/UT. Any decision regarding levy of GST on petroleum products has to be decided as per the recommendation of the GST Council.

This information was given by Minister of Petroleum & Natural Gas, Shri Dharmendra Pradhan in a written reply to the Rajya Sabha today.

(With Inputs from PIB)