This document summarizes Lok Sabha Unstarred Question No. 4694, answered on August 21, 2025, regarding the inclusion of petroleum products under the Goods and Services Tax (GST). The question inquired about proposals to include petrol and other petroleum products under GST, the position of various states including Madhya Pradesh, and any studies conducted on the potential impact of such inclusion.
The response from the Minister of State in the Ministry of Petroleum and Natural Gas, Shri Suresh Gopi, clarifies that Article 279 A (5) of the Constitution mandates the Goods and Services Tax Council to recommend the date for levying GST on petroleum crude, high-speed diesel, motor spirit (petrol), natural gas, and aviation turbine fuel (ATF). Section 92 of the CGST Act, 2017, stipulates that the inclusion of these products under GST requires the GST Council's recommendation.
As of August 21, 2025, the GST Council, where all states are represented, has not recommended the inclusion of these goods under GST. Currently, only Liquefied Petroleum Gas (LPG) is covered under the GST regime.
The GST Council discussed including ATF under the GST regime during its 55th meeting on December 21, 2024, but the proposal was rejected.
The response concludes that assessing the likely impact on consumers would be premature, as the specified petroleum products are not currently covered under GST, and no recommendation for their inclusion has been made by the GST Council.
Key Entities Referenced
Ministry of Finance: The government ministry responsible for the financial affairs of India.
Goods and Services Tax: A value-added tax levied on most goods and services sold for domestic consumption.
GST Council: A constitutional body responsible for making recommendations on issues related to Goods and Services Tax in India.
Madhya Pradesh: A state in central India, specifically mentioned in the context of its position on including petroleum products under GST.
Ministry of Petroleum and Natural Gas: The government ministry responsible for the exploration, production, refining, distribution, marketing, import, export, and conservation of petroleum, natural gas, petroleum products, and liquefied natural gas.
Article 279 A 5 of the Constitution: Constitutional article prescribing the role of the GST Council in recommending the date for levying GST on petroleum products.
CGST Act, 2017: The Central Goods and Services Tax Act, a law governing the Goods and Services Tax in India.
Aviation Turbine Fuel: A type of jet fuel, also referred to as ATF, one of the petroleum products discussed for inclusion under the GST regime.
LOK SABHA
UNSTARRED QUESTION NO. 4694
TO BE ANSWERED ON 21 AUGUST 2025
Petroleum Products under GST
†4694. SHRI GYANESHWAR PATIL:
पेट(cid:332)ोिलयम और (cid:366)ाकृ ितक गैस मं(cid:361)ी
Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:
(a) whether the Government has any proposal to bring petrol and petroleum products under the ambit
of Goods and Services Tax (GST);
(b) if so, the details thereof including the position of various States including Madhya Pradesh and if
not, the reasons therefor;
(c) whether the Ministry of Finance has received any proposal during the last five years to bring
petrol and other petroleum products under GST;
(d) if so, the details thereof including the position of Madhya Pradesh;
(e) whether the Government has conducted any study regarding the impact of bringing petrol and
petroleum products under GST; and
(f) if so, the details thereof, State-wise?
ANSWER
पेट(cid:332)ोिलयम और (cid:366)ाकृ ितक गैस मं(cid:361)ालय म(cid:336) रा(cid:475)मं(cid:361)ी
((cid:373)ी सुरेश गोपी)
MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS
(SHRI SURESH GOPI)
(a) to (b) Article 279 A (5) of the Constitution prescribes that the Goods and Services Tax Council
shall recommend the date with effect from which the goods and services tax would be levied on
petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and
aviation turbine fuel (ATF). As per the section 9(2) of the CGST Act, 2017, inclusion of these
products in GST will require recommendation of the GST Council. So far, the GST Council, in which
all States are represented, has not made any recommendation for inclusion of these goods under GST.
Presently, LPG is covered in the GST regime.
(c) to (d) The GST Council in its 55th meeting held on 21st December 2024 had discussed to include
ATF, one of the petroleum products, under the GST Regime. However, the said proposal was
rejected by the Council.
(e) to (f) Since the above products are not covered under GST and also no recommendation has been
made so far by the GST council, therefore, it would be pre-mature to assess the likely impact of
prices on the consumers.
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