Archive · 21 Jul 2026
Govt Opposes Including Auto Fuels in GST
The Indian government has decided not to include petrol, diesel, natural gas, and aviation turbine fuel (ATF) under the Goods and Services Tax (GST).
This decision was made during the 45th GST Council meeting in 2021.
The government collects a lot of money from taxes on these fuels, and they think it's not the right time to change this.
They also reduced the excise duty on petrol and diesel by Rs 10 per litre earlier this year, which will cost the government about Rs 1 lakh crore in revenue annually.
The government also imposes export duties on these fuels, which they review every two weeks.
Recently, they increased the duty on diesel exports to Rs 15.50 per litre and on ATF to Rs 14.50 per litre, while reducing the duty on petrol exports to Rs 2.50 per litre.
The Indian government collected Rs 3.27 lakh crore from excise duty on fuel and petroleum products in 2025-26.
The government reduced the central excise duty on petrol and diesel by Rs 10 per litre in March 2024.
The annual revenue impact from this reduction is estimated at around Rs 1 lakh crore.
Petrol, diesel, natural gas, and ATF remain outside the GST ambit.
The GST Council discussed including petrol and diesel under GST but decided it was not the right time.
- Who
- Indian Government
- What
- Decision to not include auto fuels under GST
- When
- Discussed in 45th GST Council meeting on 17th September, 2021
- Where
- India
- Why
- Government believes it is not the right time due to significant revenue from current tax structures
Government's Stance
Potential Benefits of GST Inclusion
Revenue Considerations
Government's Stance
The government believes it is not the right time to bring petrol and diesel under GST due to significant revenue from current tax structures.
Potential Benefits of GST Inclusion
Including auto fuels in GST could streamline taxation and potentially reduce prices for consumers.
- Revenue from Fuel Taxes (2025-26)
- Rs 3.27 lakh crore
- Excise Duty Reduction (March 2024)
- Rs 10 per litre on petrol and diesel
- Annual Revenue Impact of Reduction
- Rs 1 lakh crore
- GST Council Meeting on Fuel Inclusion
- 45th GST Council meeting on 17th September, 2021
- Export Duty on Diesel
- Rs 15.50 per litre
- Export Duty on ATF
- Rs 14.50 per litre
- Export Duty on Petrol
- Rs 2.50 per litre