The prices of petroleum products in the country are benchmarked to international product prices.
Union Petroleum Minister Dharmendra Pradhan on Wednesday said that the decision to levy GST on petroleum products will be taken as per the recommendation of GST Council.
“Article 279A (5) of the Constitution provides that 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,” Pradhan in a written reply to the Rajya Sabha said.
“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. 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,” he added.
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.