GST Council: No decision on bringing Petroleum Products under GST, says FM

GST Council Meet - Petroleum Products - GST - Taxscan

The 45th GST Council meeting has not taken any decision on bringing petroleum products under the Goods and Services Tax (GST) regime, said Finance Minister Nirmala Sitharaman.

There were speculations that seeing the current situation with respect to the Covid-19 situation, bringing petro products under GST will be a very tough call for both the Centre and states.

“In terms of the recent directions of the Hon’ble High Court of Kerala, the issue of whether specified petroleum products should be brought within the ambit of GST was placed for consideration before the Council. After due deliberation, the Council was of the view that it is not appropriate to do so at this stage,” the Government said in a statement.

GST is a “single tax” applied all over India, with a set-off provision for tax paid on inputs. However, the constitutional amendment Act on GST, while providing for inclusion of crude oil, natural gas, petrol, diesel, and aviation turbine fuel (ATF) under its ambit, had kept these products “zero-rated”.

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