Petroleum product under GST not taken up since 45th GST Council, says MoS

The MoS, Ministry of Petroleum and Natural Gas, Suresh Gopi while answering to the question "whether the Government has any proposal to bring Petrol, Diesel and LPG/CNG under GST, if so, the details thereof and if not, the reasons therefor" raised by MPs stated that the article 279 A (5) of the Constitution prescribes that the Goods and Services Tax Council shall recommend the date with effect from which the goods and services tax would be levied on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel (ATF). As per the section 9(2) of the CGST Act, 2017, inclusion of these products in GST will require recommendation of the GST Council.

He added that the GST Council in which all States and UTs are represented, has not made any recommendation for inclusion of these goods under GST.

He notes that currently, LPG is covered in the GST regime.

However, the GST Council in its 45th meeting held on 17th September, 2021 had considered the inclusion of Petrol/Diesel and other petroleum products under the GST regime but the matter was deferred by the Council till detailed deliberations on account of substantial repercussions on state and central exchequer were held.

The MoS stated that the issue has not been taken up by the Council as an agenda item for any further deliberation subsequent to the said meeting.

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