New Delhi: Minister of Petroleum & Natural Gas Dharmendra Pradhan on Wednesday said that any decision regarding levy of GST on petroleum products has to be decided as per recommendation of the GST Council.
As per the section 9(2) of the CGST Act, inclusion of all excluded petroleum products, including petrol and diesel in GST will require recommendation of the GST Council, Pradhan in a written reply in the Rajya Sabha said.
“Goods and Services Tax Council shall recommend the date on which goods and services tax shall be levied on petroleum crude, high speed diesel, motor spirit, natural gas and aviation turbine fuel. Thus while, petroleum products are constitutionally included under GST, the date on which GST shall be levied on such goods, shall be as per the decision of the GST Council,” Pradhan said.
The prices of petroleum products in the country are benchmarked to international product prices. Generally, the prices of sensitive petroleum products in the country are higher/lower than other countries due to various factors, including prevailing tax regime and subsidy compensations by the respective governments, Pradhan had earlier said.