Petrol, Diesel unlikely to come under GST ambit

Petrol, Diesel unlikely to come under GST ambit

Lucknow: Petrol and diesel are unlikely to come under the GST ambit in the 45th GST council meeting headed by the Union Finance Minister Nirmala Sitharaman.

After 20 months, GST council meeting was to discuss Covid pandemic and petrol, diesel prices. 

Recently Kerala had directed that petrol and diesel should be included in GST, as fuel prices touched record highs this year. The court said the GST Council, which includes the Centre and states, should consider it.

Kerala Finance Minister KN Balagopal and Maharashtra Deputy Chief Minister Ajit Pawar had said that they are completely against any idea to include petrol, diesel under GST. Even Tamil Nadu has also opposed bringing petrol, diesel under the GST ambit. 

In 2020, the GST Council relaxed the tax on medical grade oxygen, oxygen concentrator/generator and ventilators, and other related medical devices from 12 percent to five percent - based on the suggestions put forth by a group of ministers.

A GST compensation of ₹1,13,000 crore has been released to states since April 2020. However, the amount in the GST compensation fund is not enough to meet the full amount expected by states because of the impact of Covid on GST and GST cess collection, 

The GST Council is likely to discuss treating food delivery services (including takeaway, door delivery services) as “restaurant service.” These services may draw five percent GST, according to sources.