• Notification Date: 15-11-2022
• Notification No: N/A

Petroleum Minister Declares the Inclusion of Fuel under GST

On Monday, Petroleum and Natural Gas Minister Hardeep Singh Puri declared that the Central Government is going to bring fuel under the Goods and Service Tax (GST) regime. According to Puri, this decision might not be agreed upon by the states since liquor and energy are the two most important revenue-generating items for the states.  

Hardeep Puri further added that they will proceed with the implementation of the idea once the states agree with this decision proposed by the Center. The implementation of the matter also has some issues that need to be figured out by the Finance Minister. 

Liquor and energy are the two foremost sources for the states to generate revenue. It is not likely for the states to give up on their revenues. The Central Government is only concerned about matters like inflation, but the states would not sacrifice the revenue generated from fuel. Previously, Hardeep Puri highlighted that the Kerala High Court has suggested this matter be placed before the GST Council.   

According to Puri’s statement, the Finance Minister of Kerala state did not agree with this decision made by the Center.  He said, “The finance minister of that state did not agree. As far as GST is concerned, your wishes and my wishes apart, we are in a cooperative federal system." Regarding the rise of prices in petrol, diesel, and other fuels, Hardeep Paul stated that India has noted the lowest hike in fuel prices in the last year.  

Compared to North America, where prices of fuel went up by 43 percent in a year, India has noted only a 2 percent rise in fuel prices. Puri added that the managing director of IMF, Morgan Stanley has also remarked that it is India that stands in the brightest spot.