Five Petroleum Products (Crude, HSD, MS, ATF and NG) under GST Soon

Petroleum products, including crude and some intermediate products, could be taxed under the proposed goods and services tax (GST), a move that will reduce the imperfections in the new levy. These five sectors are big consumers.

A modest tax of 2-3% with input tax credit is in the offing on these products is being examined and is expected to be taken up by the newly constituted GST Council of both inward and outward transport and provide key inputs to the petro chemical and energy sectors, all of which are under GST.

The idea is to have some minimal tax of about 2-3 per cent so that seamless flow of credit is not broken and cascading is removed.