No recommendation from GST Council to subsume fuels like petrol, diesel, natural gas, ATF under GST

The Union Finance Minister SHRIMATI NIRMALA SITHARAMAN in a written reply to a question raised in Lok Sabha said, “No recommendation from GST Council to subsume fuels like petrol, diesel, natural gas, ATF under GST”.

SHRI SHYAM SINGH YADAV asked these questions in Lok Sabha:

Will the Minister of Finance be pleased to state:

(a) whether the Government intends to subsume fuels like petrol, diesel, natural gas and Aviation Turbine Fuel (ATF) under GST;

(b) if so, the details thereof and if not, the reasons therefor;

(c) whether the Government has made any estimate as to how much revenue would be generated by subsuming or the amount of revenue forgone by not subsuming fuels mentioned above under GST; and

(d) if so, the details thereof?

The Union Finance Minister replied:

(a) and (b): 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) and (d): Revenue Generation will depend on the GST rate. At present, these products are not covered in GST and no recommendation has been made so far by the GST Council. Therefore, it is not possible to assess the revenue generated or revenue foregone by not subsuming these fuels in GST.