Question : Inclusion of Petrol and Diesel under GST

(a) the details and total number of essential items/ services which are not covered under the Goods and Services Tax (GST) since its implementation along with the reasons for not including petrol and diesel under GST;
(b) whether the Government has received any representations requesting to bring petrol and diesel under the purview of GST and if so, the details thereof and the action taken thereon;
(c) whether the Government has recently convened GST Council meeting and if so, the details of the meeting held in the month of June and July 2021;
(d) whether the GST Council has discussed about bringing petrol, diesel and LPG under the purview of GST and has also consulted the States in this regard and if so, the details and the outcomes thereof along with the benefits to the consumers when petrol and diesel are included under GST;
(e)the number of States which have supported and objected to bring petrol and diesel under the purview of GST including the stand of Kerala in this regard;
(f) whether Kerala has supported the move to bring petrol and diesel under the purview of GST and if so, the details thereof; and
(g) the steps taken or being considered to reduce the price of edible oil and whether there is any proposal to reduce duty on edible oil and if so, the details thereof?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE
SH. PANKAJ CHOUDHARY
(a) : 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 the 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.

(b): Certain representations have been received to bring petrol and diesel under GST.
(c): 44th Meeting of GST Council was held on 12thJune 2021.
(d), (e) and (f): The Council may consider the issue of inclusion of petrol and diesel at a time it considers appropriate keeping in view all the relevant factors including revenue implication. No such proposal to bring petrol and diesel under GST has been discussed in GST Council. As regards LPG, the same is already under GST.
(g): To provide relief to the consumers, customs duty has been reduced on crude palm oil from 35.75% to 30.25% and on refined palm oil from 49.5% to 41.25% w.e.f. 30th June, 2021. The reduced rate shall be applicable till 30th September, 2021. Further, the import policy of Refined Palm Oils has been amended from “restricted “ to the “free” category for a period upto 31.12.2021.
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