Lok Sabha Question No. 1597 (UNSTARRED), answered on 2025-02-13
Subject: Cess Levied through Petroleum Products
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri Rao Rajendra Singh

## LOK SABHA UNSTARRED QUESTION NO. 1597 TO BE ANSWERED ON 13 FEBRUARY, 2025

Cess Levied through Petroleum Products

1597. Shri Rao Rajendra Singh:

## पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũी

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

- (a)  whether  the  Government  has  any  data  on  the  amount  of  cess  levied  through  various petroleum products and if so, the details thereof; and
- (b) whether the Government has any account of utilisation of the aforementioned cess and if so, the details thereof along with the details of the petroleum infrastructure devolved to States for the development?

## ANSWER

## पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũालय मŐ राǛ मंũी ( ŵी सुरे श गोपी )

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI SURESH GOPI)

- (a): The details of taxes imposed on Petrol, Diesel, LPG are as follows:

## Petrol & Diesel:

Currently,  an excise duty of Rs. 19.90 per litre and Rs. 15.80 per litre is levied on petrol and diesel respectively. The Union Government levies Central Excise/Cess on petrol/diesel, while the State Governments levy Value Added Tax (VAT). The details of VAT levied by various State Governments on Petrol and Diesel are given at Annexure-I.

LPG: The rates of Customs duty and GST applicable on LPG are:

| Particulars   | Particulars    | GST   | Customs Duty   |
|---------------|----------------|-------|----------------|
|               | Domestic *     | 5%    | Nil            |
|               | Non - Domestic | 18%   | 5%             |

Source: Petroleum Planning and Analysis Cell (PPAC)

The  details  of  contribution  of  petroleum  sector  to  exchequer  since  2023-24  are  given  at Annexure-II.

- (b): The  revenue  generated  by  taxation  is  used  in  various  infrastructural  projects  and developmental schemes of the Government like Targeted subsidy to PMUY households, Pradhan Mantri  Gram  Sadak  Yojana  (PMGSY),  Pradhan  Mantri  Ujjwala  Yojana  (PMUY),  Ayushman Bharat, Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), free vaccination for COVID 19 etc.

Annexure referred to in reply to Lok Sabha Unstarred Question No. 1597 asked by Shri Rao  Rajendra  Singh  to  be  answered  on  13.02.2025  regarding  'Cess  Levied  through Petroleum Products'.

Details of VAT /Sales tax on petrol and diesel as on 07.02.2025

| State/UT                                 | Petrol                                                                                            | Diesel                                                                                                                       |
|------------------------------------------|---------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------|
| Andaman &Nicobar Islands                 | 1%                                                                                                | 1%                                                                                                                           |
| 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                                                 |
| Arunachal Pradesh                        | 14.50%                                                                                            | 7.00%                                                                                                                        |
| Assam                                    | 24.77% or Rs.18.80 per litre whichever is higher                                                  | 22.19% OR Rs. 14.60 per litre whichever is higher Rebate of Rs. 1.50 per litre subject to minimum tax of Rs. 14.60 per litre |
| Bihar                                    | 23.58% or Rs. 16.65/Litre whichever is higher (30% Surcharge on VAT as irrecoverable tax)         | 16.37% or Rs. 12.33/Litre whichever is higher (30% Surcharge on VAT as irrecoverable tax)                                    |
| Chandigarh                               | Rs.10/KL cess +15.24% or Rs.12.42/Litre whichever is higher                                       | Rs.10/KL cess + 6.66% or Rs.5.07/Litre whichever is higher                                                                   |
| Chhattisgarh                             | 24% VAT + Rs.2/litre VAT                                                                          | 23% VAT + Rs.1/litre VAT                                                                                                     |
| Dadra and Nagar Haveli and Daman and Diu | 12.75% VAT                                                                                        | 13.50% VAT                                                                                                                   |
| Delhi                                    | 19.40% VAT                                                                                        | Rs.250/KL air ambience charges + 16.75% VAT                                                                                  |
| Goa                                      | 21.5% VAT + 0.5% Green cess                                                                       | 17.5% VAT + 0.5% Green cess                                                                                                  |
| Gujarat                                  | 13.7% VAT+ 4% Cess on Town Rate &VAT                                                              | 14.9% VAT + 4 %Cess on Town Rate &VAT                                                                                        |
| Haryana                                  | 18.20% or Rs.14.50/litre whichever is higher as VAT+5% additional tax on VAT                      | 16.00% VAT or Rs.11.86/litre whichever is higher as VAT+5% additional tax on VAT                                             |
| Himachal Pradesh                         | 17.5% or Rs. 13.50/Litre- whichever is higher                                                     | 13.90% or Rs. 10.40/Litre- whichever is higher                                                                               |
| Jammu &Kashmir                           | 24% MST+ Rs.2/Litre employment cess, Rebate of Rs.4.50/Litre                                      | 16% MST+ Rs.1.00/Litre employment cess , Rebate of Rs.6.50/Litre                                                             |
| 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                                |
| Karnataka                                | 29.84% sales tax                                                                                  | 18.44% sales tax                                                                                                             |
| Kerala                                   | 30.08% sales tax+ Rs.1/litre additional sales tax + 1% cess , Social security cess Rs.2 per litre | 22.76% sales tax+ Rs.1/litre additional sales tax + 1% cess , Social security cess Rs.2 per litre                            |
| Ladakh                                   | 15% MST+ Rs.5/Litre employment cess, Reduction of Rs.2.5/Litre                                    | 6% MST+ Rs.1/Litre employment cess , Reduction of Rs.0.50/Litre                                                              |
| Lakshadweep                              | 10% VAT                                                                                           | 10% VAT                                                                                                                      |
| Madhya Pradesh                           | 29 %VAT+Rs.2.5/litre VAT+1% Cess                                                                  | 19% VAT+ Rs.1.5/litre VAT+1% Cess                                                                                            |

| Maharashtra - Mumbai, Thane &Navi Mumbai   | 25% VAT+ Rs.5.12/Litre additional tax                                                                                                                                                          | 21% VAT                                                                                                                                                                                             |
|--------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Maharashtra (Rest of State)                | 25% VAT+ Rs.5.12/Litre additional tax                                                                                                                                                          | 21% VAT                                                                                                                                                                                             |
| Manipur                                    | 25% VAT                                                                                                                                                                                        | 13.5% VAT                                                                                                                                                                                           |
| Meghalaya                                  | 13.50% or Rs.13.50/Litre- whichever is higher (Rs.0.10/Litre pollution surcharge)                                                                                                              | 5% or Rs. 9.50/Litre- whichever is higher (Rs.0.10/Litre pollution surcharge)                                                                                                                       |
| Mizoram                                    | 18%, Social Infrastructure and Services Cess Rs. 2000/KL, Road Maintenance Cess Rs 2000/KL                                                                                                     | 10%, Social Infrastructure and Services Cess Rs 2000/KL, Road Maintenance Cess Rs. 2000/KL                                                                                                          |
| Nagaland                                   | 21.75% VAT or Rs. 16.94/litre whichever is higher                                                                                                                                              | 17.20% VAT or Rs. 12.83/litre whichever is higher                                                                                                                                                   |
| Odisha                                     | 28% VAT                                                                                                                                                                                        | 24% VAT                                                                                                                                                                                             |
| Puducherry                                 | 16.98% VAT                                                                                                                                                                                     | 11.22% VAT                                                                                                                                                                                          |
| Punjab                                     | Rs.2050/KL (cess)+ Rs.0.10 per Litre (Urban Transport Fund) + 0.25 per Litre (Special Infrastructure Development Fee)+16.58% VAT plus 10% additional tax or Rs.14.93/Litre whichever is higher | Rs.1050/KL (cess) + Rs.0.10 per Litre (Urban Transport Fund) +0.25 per Litre (Special Infrastructure Development Fee) + 13.1% VAT plus 10% additional tax and or Rs.10.94/Litre whichever is higher |
| Rajasthan                                  | 29.04% VAT+Rs. 1500/KL road development cess                                                                                                                                                   | 17.30% VAT+ Rs.1750/KL road development cess                                                                                                                                                        |
| Sikkim                                     | 20% VAT+ Rs.4000/KL cess                                                                                                                                                                       | 10% VAT + Rs.3500/KL cess                                                                                                                                                                           |
| Tamil Nadu                                 | 13% + Rs.11.52 per litre                                                                                                                                                                       | 11% + Rs.9.62 per litre                                                                                                                                                                             |
| Telangana                                  | 35.20% VAT                                                                                                                                                                                     | 27% VAT                                                                                                                                                                                             |
| Tripura                                    | 17.50% VAT+ 3% Tripura Road Development Cess                                                                                                                                                   | 10.00% VAT+ 3% Tripura Road Development Cess                                                                                                                                                        |
| Uttar Pradesh                              | 19.36% or Rs. 14.85/Litre whichever is higher                                                                                                                                                  | 17.08% or Rs. 10.41/Litre whichever is higher                                                                                                                                                       |
| Uttarakhand                                | 16.97% or Rs. 13.14 Per Ltr whichever is greater                                                                                                                                               | 17.15% or Rs. 10.41 Per Ltr whichever is greater                                                                                                                                                    |
| West Bengal                                | 25% or Rs.13.12/litre whichever is higher as sales tax+ Rs.1000/KL cess (20% Additional tax on VAT as irrecoverable tax)                                                                       | 17% or Rs.7.70/litre whichever is higher as sales tax + Rs 1000/KL cess (20% Additional tax on VAT as irrecoverable tax)                                                                            |

Source: Petroleum Planning and Analysis Cell (PPAC)

Annexure referred to in reply to Lok Sabha Unstarred Question No. 1597 asked by Shri Rao  Rajendra  Singh  to  be  answered  on  13.02.2025  regarding  'Cess  Levied  through Petroleum Products'.

## Contribution of petroleum sector to exchequer

(Rs. in Crore)

| Particulars                                               | Particulars                                               | 2023-24   | 2024-25 (Apr-Sep) (P)   |
|-----------------------------------------------------------|-----------------------------------------------------------|-----------|-------------------------|
| Contribution to Central Exchequer                         | Contribution to Central Exchequer                         |           |                         |
|                                                           | A. Tax/ Duties on Crude oil & Petroleum products          |           |                         |
|                                                           | Cess on Crude Oil                                         | 19,580    | 7,769                   |
|                                                           | Royalty on Crude Oil / Natural Gas                        | 9,286     | 4,675                   |
|                                                           | Customs Duty                                              | 13,134    | 6,696                   |
|                                                           | National Calamity Contingent Duty (NCCD) on Crude Oil     | 1,191     | 578                     |
|                                                           | Excise Duty                                               | 2,73,684  | 1,22,507                |
|                                                           | Service tax                                               | -         | -                       |
|                                                           | IGST                                                      | 20,930    | 10,364                  |
|                                                           | CGST                                                      | 12,230    | 5,523                   |
|                                                           | Others                                                    | 51        | 23                      |
|                                                           | Sub Total (A)                                             | 3,50,086  | 1,58,135                |
| B. Dividend to Government/                                | B. Dividend to Government/                                |           |                         |
|                                                           | Corporate/ Income Tax                                     | 57,493    | 19,053                  |
|                                                           | Dividend income to Central Govt.                          | 19,310    | 4,294                   |
|                                                           | Dividend distribution tax                                 | -         | -                       |
|                                                           | Profit Petroleum on exploration of Oil/ Gas               | 5,505     | 1,837                   |
|                                                           | Sub Total (B)                                             | 82,308    | 25,184                  |
| 1. Total Contribution to Central Exchequer (A+B)          | 1. Total Contribution to Central Exchequer (A+B)          | 4,32,394  | 1,83,319                |
| 2. Total Contribution to State Exchequer                  | 2. Total Contribution to State Exchequer                  | 3,18,762  | 1,55,866                |
| Total Contribution of Petroleum Sector to Exchequer (1+2) | Total Contribution of Petroleum Sector to Exchequer (1+2) | 7,51,156  | 3,39,185                |

The above is based on data provided to Petroleum Planning and Analysis Cell (PPAC) by 15 major oil & gas  companies.  The  amount  reported  by  the  companies  to  PPAC  is  the  consolidated  amount  of  all taxes/cess/ duties /GST etc. for crude oil and petroleum products.    (P) - Provisional