GST Council hasn't recommended inclusion of petrol, diesel under GST: Ministry of Finance

The Union Ministry of Finance on Tuesday informed that no recommendation has been made by the Good and Services Tax (GST) Council to bring petrol and diesel in its ambit. The information comes in response to a question put forth by Bharatiya Janata Party (BJP) MP Udayanraje Bhonsle, Samajwadi Party (SP) MPs Vishmabhar Prasad Nishad and Sukhram Singh Yadav and Congress MP Chhaya Verma.

"As per section 9(2) of the CGST Act, the inclusion of these products in GST will require the recommendation of the GST Council. So far, the GST Council has not made any recommendation for the inclusion of petrol and diesel under GST," Union Minister of State for Finance, Anurag Thakur said in a written reply in the Rajya Sabha.

Earlier, Minister of Finance Nirmala Sitharaman had confirmed the same, and said," Whenever the GST Council decides to take up the issue, they are well within their interest to take it up and discuss. It's a call which the Council has to take." 

No new cess on petroleum products 

Thakur also took the opportunity to inform that no new cess will be imposed on petroleum products. Presently, petrol and diesel in the country attract road and infrastructure cess, special additional excise duty and Agriculture Infrastructure and Development Cess (AIDC), along with basic excise duty on fuel products. 

In the Union Budget 2021, Agricultural Infrastructure and Development Cess of Rs 2.5 per litre on petrol and Rs 4 on diesel. To compensate for this, basic excise and special additional excise duties on the fuel were reduced by an equal amount. The basic excise duty on unbranded petrol was reduced to Rs 1.40 from Rs 2.98 and special additional excise duty to Rs 11 per litre from Rs 12. 

Reason for a rise in prices of petrol and diesel 

The price of petrol and diesel has been at an all-time high since February. Earlier, Union Petroleum and Natural Gas and Steel Minister Dharmendra Pradhan had cited reduced fuel production and oil-rich nations seeking more profits as the primary reasons for the rise. 

Thereafter a source had stated, "The government is discussing as to what extent the taxes could be cut, and that too, without having much stress on either the Centre or the state government. The discussion has been started among the Ministry officials on how to bring the Centre and government on a platform where relief from high fuel prices can be given to the common man."

(with inputs from ANI)