Lok Sabha Question No. 12 (UNSTARRED), answered on 2021-07-19
Subject: Inclusion of Petrol and Diesel under GST
Ministry: FINANCE
Asked by: S. Muniswamy, N.K. Premachandran, Anto  Antony, T. R. Paarivendhar, Sarmistha Sethi

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

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## LOK SABHA

## UNSTARRED QUESTION NO.12

## TO BE ANSWERED ON MONDAY THE 19 TH   JULY, 2021 ASHADHA 28, 1943 (SAKA)

## INCLUSION OF PETROL AND DIESEL UNDER GST

## 12. SHRI S. MUNISWAMY:

SHRI N.K. PREMACHANDRAN: SHRI ANTO ANTONY: DR. T.R.PAARIVENDHAR: SHRIMATI SARMISTHA SETHI:

## Will the Minister of FINANCE be pleased to state:

(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.

(c): 44th Meeting of GST Council was held on 12 th June 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.  30 th June, 2021. The reduced rate shall be applicable till 30 th  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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