Lok Sabha Question No. 95 (UNSTARRED), answered on 2023-02-02
Subject: GST on Petroleum Products
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Karti P. Chidambaram

## LOK SABHA UNSTARRED QUESTION NO. 95 TO BE ANSWERED ON 2 nd  February 2023

## GST on Petroleum Products

## 95. SHRI KARTI P. CHIDAMBARAM:

## पेोलयम और ाक ृतक गैस मंी

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

( a)  whether it is a fact that the Union Government is in favour of bringing petrol and diesel under the ambit of GST and if so, the details thereof and if not, the reasons therefor;

(b) whether the GST Council has made a recommendation regarding the same;

(c) if so, whether the Union Government has consulted the States in this regard and if so, the details thereof;

(d) the details of cess and surcharge on petrol and diesel collected and utilised during the last five financial years, including provisional data for the current year;

(e) whether the revenue generated from cess has been diverted for other purposes;

(f) if so, the details of funds diverted during the last five financial years and current year along with the reasons for diversion of funds; and

(g) whether the Government has undertaken any periodic review to evaluate effective utilisation of revenue generated via levied cesses and if so, the details thereof?

## ANSWER

## पेोलयम और ाक ृतक गैस मंालय म राय मंी ( ी रामेवर तेल ) MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI RAMESWAR TELI)

(a to c) 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.

(d  to  g)  As  per  information  compiled  by  the  Ministry  of  Finance,  the  details  of  Cesses collected/realized alongside RE 2021-22 and BE 2022-23 are given below:

(Rs. crore)

|   Sl. No. | Head                                               |   2017-18 |   2018-19 |   2019-20 |   2020-21 | 2021-22 (RE)   | 2022-23 (BE)   |
|-----------|----------------------------------------------------|-----------|-----------|-----------|-----------|----------------|----------------|
|         1 | Additional Excise duties on Motor Spirit (Petrol)* |  21935.1  |   15307.8 |   14381.9 |   26895.3 | -              | -              |
|         2 | Additional Excise Duties on High Speed Diesel*     |  61181.3  |   44272.7 |   40668.7 |   85289.2 | -              | -              |
|         3 | Road& Infrastructure Cess*                         |     15.87 |   51266.7 |   67373.6 |  123596   | 203235.00      | 138450.00      |

* The additional duty of excise/customs on petrol and HSD was converted into 'Road and Infrastructure Cess'  from  Budget  for  2018-19  through  amendment  of  erstwhile  Central  Road  Fund  Act,  2000  into Central Road and Infrastructure Fund Act, 2000.

Levy of Cess as part of the tax collection is for meeting specific objectives of the Government. Taking  into  account  the  receipts  and  utilisation  of  different  cesses  in  the  previous  years,  the additional transfers to reserve funds are also made towards making good the shortfalls, if any, from Union Government's own resources and borrowings. Government has been transferring the Cess  so  collected  to  various  dedicated  Reserve  Funds,  kept  in  Public  Account,  after  due appropriation authorised by Parliament by Law.

Accordingly, the transfer to Central Road and Infrastructure Fund during the last five years is as follows:

| Name of the Fund                                 |   2018-19 |   2019-20 |   2020-21 |   2021-22 (RE) |   2022-23 (BE) |
|--------------------------------------------------|-----------|-----------|-----------|----------------|----------------|
| Central Road and Infrastructure Fund (Rs. crore) |   62879.6 |   90252.4 |    182363 |         247858 |         295150 |

******