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Petrol, Diesel Won’t be Brought Under GST As of Now: Nirmala Sitharaman

She said that GST Council members made it clear that they did not want petroleum to be put under GST.

New Delhi: Union Finance Minister Nirmala Sitharaman speaks during a press conference at NMC in New Delhi, Thursday, Sept. 16, 2021. (PTI Photo/Manvender Vashist)

New Delhi: Union Finance Minister BNirmal Siathraman on Friday announced that petrol, diesel would not be brought under the GST regime as of now. Her comments came after the 45th meeting of the GST Council in Lucknow.

She said that GST Council members made it clear that they did not want petroleum to be put under GST.

“GST Council Members made it clear they do NOT want petroleum products to be included under #GST It was decided, we will report to Kerala HC that, matter has been discussed & Council felt it was not the time to bring petroleum products under GST,” she said.

She added that the matter was only put to discussion after the order of the Kerala High Court.

READ MORE: Reduced GST Rates On Covid Medicines Extended Till December 31, Says Nirmala Sitharaman

“I make it absolutely clear that this came on today’s agenda purely because of the Kerala High Court order where it suggested the matter to be placed before,” the minister said.

Back in June, the Kerala HC had asked the GST council to consider bringing petrol diesel under the GST regime after hearing a writ petition.

Sitharaman said that the Center will approach the HC and inform them that the matter has been discussed.

Kerala on Thursday said it will vehemently oppose any move to bring petrol and diesel under the GST regime as that will further reduce revenue generation for the state and asserted that the Centre should reduce its levies on the two commodities to provide relief to the common people.

READ MORE: GST Rate On Biodiesel Reduced To 5%; See Other Major Announcements By Sitharaman After Council Meet

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Talking to PTI, Kerala Finance Minister K N Balagopal said the state will strongly oppose, if there is any move to bring petrol and diesel under the GST regime.

He said the fuel prices skyrocketed due to the huge increase of its cess by the Centre and if the Union Government reduces the cess, that will help in bringing down the prices of petrol and diesel.

According to him, if petrol and diesel are brought under the GST regime, the state will lose Rs 8,000 crore annually.

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