Question : Central and State Tax on Fuel

(a) whether the Ministry has initiated discussions with the Goods and Services Tax (GST) Council to assess if fuel should be brought under GST;

(b) if so, the details thereof, and if not, the reasons therefor;

(c) whether the Ministry is considering reforming the Central and State tax on fuel; and

(d) if so, the details thereof and if not, the reasons therefor?

Answer given by the minister

MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)

(a) to (d): Article 279 A (5) of the Constitution prescribes that the Goods and Service Tax Council shall recommend the date on which the goods and services tax be levied on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel (ATF). Also, as per section 9(2) of the CGST Act, inclusion of these products in GST will require recommendation of the GST Council. So far, the GST Council, in which the states are also represented, has not made any recommendation for inclusion of these goods under GST.

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