Lok Sabha Question No. 208 (UNSTARRED), answered on 2021-07-19
Subject: Inclusion of Petroleum Products under GST
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Manickam Tagore B, K. Muraleedharan, Krupal Balaji Tumane, Adoor Prakash, Rajiv Ranjan (Lalan) Singh, Omprakash Bhupalsinh alias Pawan Rajenimbalkar, Vellalath Kochukrishnan Nair. Sreekandan, Dean Kuriakose, Deepak Baij, Bhartruhari Mahtab, Kuldeep Rai Sharma, Supriya Sadanand Sule, S.R. Parthiban, Subhash Ramrao Bhamre, Sougata Ray, DNV Senthilkumar. S., Hibi Eden, Sunil Dattatray Tatkare, Amol Ramsing Kolhe

## LOK SABHA UNSTARRED QUESTION NO. 208

## TO BE ANSWERED ON 19 TH  JULY, 2021

## Inclusion of Petroleum Products under GST

208. SHRI MANICKAM TAGORE B.:

SHRI K. MURALEEDHARAN:

SHRI KRUPAL BALAJI TUMANE:

ADV. ADOOR PRAKASH:

SHRI RAJIV RANJAN SINGH ALIAS LALAN SINGH:

SHRI OMPRAKASH BHUPALSINH alias PAWAN RAJENIMBALKAR:

SHRI V.K.SREEKANDAN:

ADV. DEAN KURIAKOSE:

SHRI DEEPAK BAIJ:

SHRI BHARTRUHARI MAHTAB:

SHRI KULDEEP RAI SHARMA:

SHRIMATI SUPRIYA SULE:

SHRI PARTHIBAN S.R.:

DR. SUBHASH RAMRAO BHAMRE:

PROF. SAUGATA RAY:

DR. DNV SENTHILKUMAR. S.:

SHRI HIBI EDEN:

SHRI SUNIL DATTATRAY TATKARE:

DR. AMOL RAMSING KOLHE:

## isVªksfy;e vkSj izkÑfrd xSl ea=h

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a)  the  authority  responsible  for  fixing  the  petrol  prices  in  the  country  and  the  reasons  for different prices of petrol in the States across the country;
- (b) the current prices of crude oil in the country and the number of times the price of petroleum products has been hiked during the last one year in the country and the extra amount spent by the citizens in total on petrol/ diesel/LPG, State-wise along with the reasons for unprecedented rise in the same and and effect on the consumers in terms of GDP;
- (c) whether the prices of petroleum products are responsible for the current high inflation rate, if so, the measures taken by the Government to control the rise in fuel prices during this pandemic period;
- (d)  the  details  of  the  prices  of  petrol  and  diesel  in  INR  in  the  neghbouring  countries  such  as Pakistan,  Bangladesh,  Bhutan,  Nepal,  Myanmar  and  Sri  Lanka  during  the  last  one  year  along with the reasons for the high price of petrol/diesel in India;
- (e) the average price of crude oil per barrel in the international market and selling price of petrol during the last three years and the current year along with the net profit earned by Oil Marketing Companies (OMCs) due to cheap price of petrol/diesel in the international market during this

period, year-wise and month-wise details thereof and the basis for increasing the price of petrol/ diesel by these OMCs and whether relief has been provided to retail consumers of the country in the event of fall in the prices of crude oil in the international market;

(f) the rate of taxes charged by the Centre and the States per litre of petrol/diesel/LPG during the quarter  1,  2  and  3  of  financial  year  2020-21,  State-wise  along  with  the  details  of  revenue collected/profit  generated  from  selling  petrol/diesel  to  dealers  monthly  during  the  last  three years, including the amount received through taxes during the period along with the details of usage of funds from the profit generated and whether the Government collects more revenue in the event of increase in price of the same;

(g)  whether  the  Government  has  any  plans  to  include  petroleum  products  in  GST  to  control prices of petrol/ diesel, if so, the details thereof, if not, the reasons therefor along with the details of States which objected this move; and

(h) whether his Ministry has any proposal for including petroleum products under GST, if so, the details thereof, if not, the reasons therefor?

## ANSWER

## isVªksfy;e vkSj izkÑfrd xSl ea=ky; esa jkT; ea=h ( Jh jkes ' oj rsyh ) MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI RAMESWAR TELI)

(a) to (f): Prices of petrol and diesel are market-determined with effect from 26.06.2010 and 19.10.2014 respectively. Since then, the Public Sector Oil Marketing Companies (OMCs) have been taking appropriate  decision on pricing of petrol and diesel on the basis of international product prices and other market conditions. The OMCs have increased and decreased the prices of petrol and diesel according to changes in international prices and rupee dollar exchange rate. Effective 16 th June, 2017, daily pricing of petrol and diesel has been implemented in the entire country.    The  prices  of  petrol  in  the  States  across  the  country  varies  due  to  freight  rates, VAT/local levies etc.

The average monthly price of Indian basket of crude oil since April 2018 is given as Annexure-1.

The details of number of times the prices of petrol, diesel and LPG have changed at Delhi from 1 st July, 2020 to 9 th July 2021are at Annexure-2.

The impact of increase in prices of petrol and diesel can be seen in their impact on inflationary trend  measured  by  Wholesale  Price  Index  (WPI).    The  weightage  of  petrol  and  diesel  in  the

WPI  index  is  1.60%  and  3.10%  respectively  and  in  the  CPI  index  is  2.19%  and  0.15% respectively.

The standalone PAT of the Oil Marketing Companies from all activities for the last three years is given below:-

(Rs.Crore)

| Companies   | 2018-19   | 2019-20   | 2020-21   |
|-------------|-----------|-----------|-----------|
| IOCL        | 16,894    | 1,313     | 21,836    |
| BPCL        | 7,132     | 2,683     | 19,042    |
| HPCL        | 6,029     | 2,637     | 10,664    |

The details of total central excise duty including cesses on petrol and diesel and details central excise collected from petroleum products in the last three years are at Annexure-3.

The  State  wise  actual  rates  of  VAT  on  petrol  and  diesel  as  on  1st  April  2021are  given  as Annexure-4.

The prices of petroleum products in the country are benchmarked to international product prices. Generally, the price of petroleum products in the country are higher/lower than other countries due to a variety of factors,  including  prevailing  tax  regime  and  subsidy  compensations  by  the respective Governments, the details of which are not maintained by the Government.

(g) & (h): 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  has  not recommended inclusion of oil and gas under GST. At present, there is no proposal to bring these five goods under GST.

Annexure referred to in reply to parts (a) to (f) of Lok Sabha Unstarred Question No. 208 asked by Shri Manickam Tagore  B.,  Shri  K.  Muraleedharan,  Shri  Krupal  Balaji  Tumane,  Adv.  Adoor  Prakash,  Shri Rajiv  Ranjan  Singh  Alias  Lalan  Singh,  Shri  Omprakash  Bhupalsinh  alias  Pawan  Rajenimbalkar,  Shri V.K.Sreekandan, Adv. Dean Kuriakose, Shri Deepak Baij, Shri Bhartruhari Mahtab, Shri Kuldeep Rai Sharma, Shrimati Supriya Sule, Shri Parthiban S.R., Dr. Subhash Ramrao Bhamre, Prof. Saugata Ray, Dr. DNV Senthilkumar. S., Shri Hibi Eden, Shri Sunil Dattatray Tatkare and Dr. Amol Ramsing Kolhe to be answered on 19 th July, 2021 regarding 'Inclusion of Petroleum Products under GST'.

The average monthly price of Indian basket of crude oil since April 2018

| Month                    |   Indian Basket of Crude Oil ($/bbl) |
|--------------------------|--------------------------------------|
| Apr-18                   |                                69.22 |
| May-18                   |                                75.25 |
| Jun-18                   |                                73.83 |
| Jul-18                   |                                73.47 |
| Aug-18                   |                                72.53 |
| Sep-18                   |                                77.88 |
| Oct-18                   |                                80.08 |
| Nov-18                   |                                65.4  |
| Dec-18                   |                                57.77 |
| Jan-19                   |                                59.27 |
| Feb-19                   |                                64.53 |
| Mar-19                   |                                66.74 |
| Apr-19                   |                                71    |
| May-19                   |                                70.01 |
| Jun-19                   |                                62.37 |
| Jul-19                   |                                63.63 |
| Aug-19                   |                                59.35 |
| Sep-19                   |                                61.72 |
| Oct-19                   |                                59.7  |
| Nov-19                   |                                62.53 |
| Dec-19                   |                                65.5  |
| Jan-20                   |                                64.31 |
| Feb-20                   |                                54.63 |
| Mar-20                   |                                33.36 |
| Apr-20                   |                                19.9  |
| May-20                   |                                30.61 |
| Jun-20                   |                                40.63 |
| Jul-20                   |                                43.35 |
| Aug-20                   |                                44.19 |
| Sep-20                   |                                41.35 |
| Oct-20                   |                                40.66 |
| Nov-20                   |                                43.34 |
| Dec-20                   |                                49.84 |
| Jan-21                   |                                54.79 |
| Feb-21                   |                                61.22 |
| Mar-21                   |                                64.73 |
| Apr-21                   |                                63.4  |
| May-21                   |                                66.95 |
| Jun-21                   |                                71.98 |
| Jul-21 (till 11 th July) |                                74.36 |

The Indian basket of Crude Oil represents a derived basket comprising of Sour grade (Oman & Dubai average) and Sweet grade (Brent Dated) of Crude oil processed in Indian refineries

Annexure referred to in reply to parts (a) to (f) of Lok Sabha Unstarred Question No. 208 asked by Shri Manickam Tagore  B.,  Shri  K.  Muraleedharan,  Shri  Krupal  Balaji  Tumane,  Adv.  Adoor  Prakash,  Shri Rajiv  Ranjan  Singh  Alias  Lalan  Singh,  Shri  Omprakash  Bhupalsinh  alias  Pawan  Rajenimbalkar,  Shri V.K.Sreekandan, Adv. Dean Kuriakose, Shri Deepak Baij, Shri Bhartruhari Mahtab, Shri Kuldeep Rai Sharma, Shrimati Supriya Sule, Shri Parthiban S.R., Dr. Subhash Ramrao Bhamre, Prof. Saugata Ray, Dr. DNV Senthilkumar. S., Shri Hibi Eden, Shri Sunil Dattatray Tatkare and Dr. Amol Ramsing Kolhe to be answered on 19 th July, 2021 regarding 'Inclusion of Petroleum Products under GST'.

2018-19

| Particulars   |   Petrol |   Diesel |
|---------------|----------|----------|
| Increase      |      148 |      140 |
| Decrease      |      112 |      118 |
| No change     |      105 |      107 |
| Total         |      365 |      365 |

## 2019-20

2020-21

| Particulars   |   Petrol |   Diesel |
|---------------|----------|----------|
| Increase      |       89 |       79 |
| Decrease      |      124 |      119 |
| No change     |      153 |      168 |
| Total         |      366 |      366 |

2021-22

| Particulars   |   Petrol |   Diesel |
|---------------|----------|----------|
| Increase      |       76 |       73 |
| Decrease      |       10 |       24 |
| No change     |      279 |      268 |
| Total         |      365 |      365 |

*Data for 2021-22 is upto 13-Jul-21

| Particulars   |   Petrol |   Diesel |
|---------------|----------|----------|
| Increase      |       39 |       36 |
| Decrease      |        1 |        2 |
| No change     |       64 |       66 |
| Total         |      104 |      104 |

The  details  of  the  number  of  times  the  prices  of  domestic  LPG  (non-subsidised)  have  been changed in the last three years and current year at Delhi are given below:

|                          |   Increase |   Decrease |
|--------------------------|------------|------------|
| 2018-19                  |          8 |          5 |
| 2019-20                  |          9 |          3 |
| 2020-21                  |          8 |          2 |
| 2021-22 (till 1 st July) |          1 |          1 |

Annexure referred to in reply to parts (a) to (f) of Lok Sabha Unstarred Question No. 208 asked by Shri Manickam Tagore  B.,  Shri  K.  Muraleedharan,  Shri  Krupal  Balaji  Tumane,  Adv.  Adoor  Prakash,  Shri Rajiv  Ranjan  Singh  Alias  Lalan  Singh,  Shri  Omprakash  Bhupalsinh  alias  Pawan  Rajenimbalkar,  Shri V.K.Sreekandan, Adv. Dean Kuriakose, Shri Deepak Baij, Shri Bhartruhari Mahtab, Shri Kuldeep Rai Sharma, Shrimati Supriya Sule, Shri Parthiban S.R., Dr. Subhash Ramrao Bhamre, Prof. Saugata Ray, Dr. DNV Senthilkumar. S., Shri Hibi Eden, Shri Sunil Dattatray Tatkare and Dr. Amol Ramsing Kolhe to be answered on 19 th July, 2021 regarding 'Inclusion of Petroleum Products under GST'.

| Period            | Total Central Excise duty (Rs/litre)   | Total Central Excise duty (Rs/litre)   | Total Central Excise duty (Rs/litre)   | Total Central Excise duty (Rs/litre)   |
|-------------------|----------------------------------------|----------------------------------------|----------------------------------------|----------------------------------------|
|                   | Petrol (unbranded)                     | Petrol (branded)                       | Diesel (unbranded)                     | Diesel (branded)                       |
| W.e.f. 04.10.2017 | 19.48                                  | 20.66                                  | 15.33                                  | 17.69                                  |
| W.e.f. 02.02.2018 | 19.48                                  | 20.66                                  | 15.33                                  | 17.69                                  |
| W.e.f. 05.10.2018 | 17.98                                  | 19.16                                  | 13.83                                  | 16.19                                  |
| W.e.f. 06.07.2019 | 19.98                                  | 21.16                                  | 15.83                                  | 18.19                                  |
| W.e.f. 14.03.2020 | 22.98                                  | 24.16                                  | 18.83                                  | 21.19                                  |
| W.e.f. 06.05.2020 | 32.98                                  | 34.16                                  | 31.83                                  | 34.19                                  |
| W.e.f. 02.02.2021 | 32.90                                  | 34.10                                  | 31.80                                  | 34.20                                  |

Central excise duty collected from petroleum products are as under:

| Item              |   2018-19 |   2019-20 |   2020-21 |
|-------------------|-----------|-----------|-----------|
| Petrol            |     68929 |     66279 |    101598 |
| Diesel            |    144471 |    112032 |    233296 |
| ATF               |      2540 |      1461 |       779 |
| Natural Gas       |      1547 |      1573 |      1195 |
| Cess on crude oil |     17814 |     16500 |      7877 |
| Total             |    235301 |    197845 |    344746 |

Annexure referred to in reply to parts (a) to (f) of Lok Sabha Unstarred Question No. 208 asked by Shri Manickam Tagore  B.,  Shri  K.  Muraleedharan,  Shri  Krupal  Balaji  Tumane,  Adv.  Adoor  Prakash,  Shri Rajiv  Ranjan  Singh  Alias  Lalan  Singh,  Shri  Omprakash  Bhupalsinh  alias  Pawan  Rajenimbalkar,  Shri V.K.Sreekandan, Adv. Dean Kuriakose, Shri Deepak Baij, Shri Bhartruhari Mahtab, Shri Kuldeep Rai Sharma, Shrimati Supriya Sule, Shri Parthiban S.R., Dr. Subhash Ramrao Bhamre, Prof. Saugata Ray, Dr. DNV Senthilkumar. S., Shri Hibi Eden, Shri Sunil Dattatray Tatkare and Dr. Amol Ramsing Kolhe to be answered on 19 th July, 2021 regarding 'Inclusion of Petroleum Products under GST'.

Statement of Actual rates of VAT/Sales Tax levied by various States/ UTs as on 01-Apr-21

|   Sr. No | State                                    | Petrol                                                                                        | Diesel                                                                                        |
|----------|------------------------------------------|-----------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|
|        1 | Andaman &Nicobar Islands                 | 6%                                                                                            | 6%                                                                                            |
|        2 | Andhra Pradesh                           | 31% VAT + Rs.4/litre VAT+Rs.1/litre Road Development Cess and Vat thereon                     | 22.25% VAT + Rs.4/litre VAT+Rs.1/litre Road Development Cess and Vat thereon                  |
|        3 | Arunachal Pradesh                        | 20.00%                                                                                        | 12.50%                                                                                        |
|        4 | Assam                                    | 32.66% or Rs.22.63 per litre whichever is higher as VAT minus Rebate of Rs.5 per Litre        | 23.66% or Rs.17.45 per litre whichever is higher as VAT minus Rebate of Rs.5 per Litre        |
|        5 | Bihar                                    | 26% or Rs 16.65/Litre whichever is higher (30% Surcharge on VAT as irrecoverable tax)         | 19% or Rs 12.33/Litre whichever is higher (30% Surcharge on VAT as irrecoverable tax)         |
|        6 | Chandigarh                               | Rs.10/KL cess +22.45% or Rs.12.58/Litre whichever is higher                                   | Rs.10/KL cess + 14.02% or Rs.7.63/Litre whichever is higher                                   |
|        7 | Chhattisgarh                             | 25% VAT + Rs.2/litre VAT                                                                      | 25% VAT + Rs.1/litre VAT                                                                      |
|        8 | Dadra and Nagar Haveli and Daman and Diu | 20% VAT                                                                                       | 20% VAT                                                                                       |
|        9 | Delhi                                    | 30% VAT                                                                                       | Rs.250/KL air ambience charges + 16.75% VAT                                                   |
|       10 | Goa                                      | 27% VAT + 0.5% Green cess                                                                     | 23% VAT + 0.5% Green cess                                                                     |
|       11 | Gujarat                                  | 20.1% VAT+ 4% Cess on Town Rate &VAT                                                          | 20.2% VAT + 4 %Cess on Town Rate &VAT                                                         |
|       12 | Haryana                                  | 25% or Rs.15.62/litre whichever is higher as VAT+5% additional tax on VAT                     | 16.40% VAT or Rs.10.08/litre whichever is higher as VAT+5% additional tax on VAT              |
|       13 | Himachal Pradesh                         | 25% or Rs 15.50/Litre- whichever is higher                                                    | 14% or Rs 9.00/Litre- whichever is higher                                                     |
|       14 | Jammu &Kashmir                           | 24% MST+ Rs.5/Litre employment cess, Reduction of Rs.0.50/Litre                               | 16% MST+ Rs.1.50/Litre employment cess                                                        |
|       15 | Jharkhand                                | 22% on the sale price or Rs. 17.00 per litre , which ever is higher + Cess of Rs 1.00 per Ltr | 22% on the sale price or Rs. 12.50 per litre , which ever is higher + Cess of Rs 1.00 per Ltr |
|       16 | Karnataka                                | 35% sales tax                                                                                 | 24% sales tax                                                                                 |

| Sr. No                                         | State                                          | Petrol                                                                                                                                                                     | Diesel                                                                                                                                                 |
|------------------------------------------------|------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
| 17                                             | Kerala                                         | 30.08% sales tax+ Rs.1/litre additional sales tax + 1% cess                                                                                                                | 22.76% sales tax+ Rs.1/litre additional sales tax + 1% cess                                                                                            |
| 18                                             | Ladakh                                         | 24% MST+ Rs.5/Litre employment cess, Reduction of Rs.2.5/Litre                                                                                                             | 16% MST+ Rs.1/Litre employment cess , Reduction of Rs.0.50/Litre                                                                                       |
| 19                                             | Lakshadweep                                    | Nil                                                                                                                                                                        | Nil                                                                                                                                                    |
| 20                                             | Madhya Pradesh                                 | 33%VAT + Rs.4.5/litre VAT+1%Cess                                                                                                                                           | 23% VAT+ Rs.3/litre VAT+1% Cess                                                                                                                        |
| 21                                             | Maharashtra - Mumbai, Thane &Navi Mumbai       | 26% VAT+ Rs.10.12/Litre additional tax                                                                                                                                     | 24% VAT+ Rs.3.00/Litre additional tax                                                                                                                  |
| 22                                             | Maharashtra (Rest of State)                    | 25% VAT+ Rs.10.12/Litre additional tax                                                                                                                                     | 21% VAT+ Rs.3.00/Litre additional tax                                                                                                                  |
| 23                                             | Manipur                                        | 36.50% VAT                                                                                                                                                                 | 22.50% VAT                                                                                                                                             |
| 24                                             | Meghalaya                                      | 20% or Rs15.00/Litre- whichever is higher (Rs.0.10/Litre pollution surcharge)                                                                                              | 12% or Rs9.00/Litre- whichever is higher (Rs.0.10/Litre pollution surcharge)                                                                           |
| 25                                             | Mizoram                                        | 25% VAT                                                                                                                                                                    | 14.5% VAT                                                                                                                                              |
| 26                                             | Nagaland                                       | 25% VAT or Rs. 16.04/litre whichever is higher +5% surcharge + Rs.2.00/Litre as road maintenance cess                                                                      | 16.50% VAT or Rs. 10.51/litre whichever is higher +5% surcharge + Rs.2.00/Litre as road maintenance cess                                               |
| 27                                             | Odisha                                         | 32% VAT                                                                                                                                                                    | 28% VAT                                                                                                                                                |
| 28                                             | Puducherry                                     | 26% VAT                                                                                                                                                                    | 17.75% VAT                                                                                                                                             |
| 29                                             | Punjab                                         | Rs.2050/KL (cess)+ Rs.0.10 per Litre (Urban Transport Fund) +24.79% VAT+10% additional tax on VAT                                                                          | Rs.1050/KL (cess) + Rs.0.10 per Litre (Urban Transport Fund) + 15.94% VAT+10% additional tax on VAT                                                    |
| 30                                             | Rajasthan                                      | 36% VAT+Rs 1500/KL road development cess                                                                                                                                   | 26% VAT+ Rs.1750/KL road development cess                                                                                                              |
| 31                                             | Sikkim                                         | 25.25% VAT+ Rs.3000/KL cess                                                                                                                                                | 14.75% VAT + Rs.2500/KL cess                                                                                                                           |
| 32                                             | Tamil Nadu                                     | 15% + Rs.13.02 per litre                                                                                                                                                   | 11% + Rs.9.62 per litre                                                                                                                                |
| 33                                             | Telangana                                      | 35.20% VAT                                                                                                                                                                 | 27% VAT                                                                                                                                                |
| 34                                             | Tripura                                        | 25% VAT+ 3% Tripura Road Development Cess                                                                                                                                  | 16.50% VAT+ 3% Tripura Road Development Cess                                                                                                           |
| 35                                             | Uttar Pradesh                                  | 26.80% or Rs 18.74/Litre whichever is higher                                                                                                                               | 17.48% or Rs 10.41/Litre whichever is higher                                                                                                           |
| 36                                             | Uttarakhand                                    | 25% or Rs 19 Per Ltr whichever is greater                                                                                                                                  | 17.48% or Rs Rs 10.41 Per Ltr whichever is greater                                                                                                     |
| 37                                             | West Bengal                                    | 25% or Rs.13.12/litre whichever is higher as sales tax+ Rs.1000/KL cess- Rs.17/KL exemption - Rs 1000/KL sales tax rebate (20% Additional tax on VAT as irrecoverable tax) | 17% or Rs.7.70/litre whichever is higher as sales tax + Rs 1000/KL cess - Rs 1000/KL sales tax rebate (20% Additional tax on VAT as irrecoverable tax) |
| Source- (As per details provided by IOCL/HPCL) | Source- (As per details provided by IOCL/HPCL) | Source- (As per details provided by IOCL/HPCL)                                                                                                                             | Source- (As per details provided by IOCL/HPCL)                                                                                                         |