Levy of GST on Petroleum Products to Be Decided By GST Council: Dharmendra Pradhan

According to information by Shri Dharmendra Pradhan, in Rajya Sabha, the prices of petroleum products in the country are benchmarked to international product prices. Due to many factors, the prices of sensitive petroleum products in the country are higher or lower than other countries, which include, 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- www.ppac .org.in  

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

Therefore, 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. According to section 9(2) of the CGST Act, the inclusion of all excluded petroleum products, like 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 is to be decided as per the recommendation of the GST Council.