Petrol, diesel won’t be brought under GST yet, says finance minister

Petrol, diesel won’t be brought under GST yet, says finance minister

NEW DELHI: Finance minister Nirmala Sitharaman on Friday clarified that petrol and diesel price will not be brought the goods and services tax (GST) regime yet.

Briefing the media on the key decisions taken in the 45th GST Council meet, Sitharaman said that the GST Council members made it clear they do not want petroleum products to be included under GST.

“There has been lot of media speculation on whether petroleum products will be brought under ambit of GST. I make it absolutely clear that this came on today’s agenda purely because of the Kerala high court order where it suggested the matter to be placed before the GST Council,” Sitharaman said.

The panel has decided to report to Kerala HC that the matter was discussed and the Council felt it was not the time to bring petroleum products under GST, she added.

In June, the Kerala high court, based on a writ petition, had asked the GST Council to decide on bringing petrol and diesel within the GST ambit.

Soaring prices of petrol and diesel have been a cause of concern for consumers as a litre of petrol cost over Rs 100 in most cities. Similarly, diesel prices are also near record highs.

Fuel prices have been hovering at record levels on account of 41 increases in its retail rates since April this year.

When GST was introduced in July 2017, five commodities — crude oil, natural gas, petrol, diesel and aviation turbine fuel (ATF) — were kept out of the GST purview, considering the revenue dependence of the central and state governments on them.