Context The GST Council might consider taxing petrol, diesel and other petroleum products under the single national GST regime.
Instead of GST, as of now, taxes like ‘Excise Duty’ and ‘VAT’ are being imposed on Petroleum goods like petrol, diesel, Air Turbine Fuel (ATF), natural gas and crude oil
When GST was implemented in 2017, States did not allow these goods to be included in GST, because they were getting huge revenues (through VAT) on these goods.
They thought that if these petroleum goods were included in the GST, then they would lose the freedom to decide the tax rate on these goods.
So, at that time it was agreed that within 5 years i.e. by 2022, these petroleum goods will be included in GST.
About GST Council
The GST Council is a constitutional body established under Article 279A of Indian Constitution
It makes recommendations to the Union and State Government on issues related to Goods and Service Tax (GST).
The GST Council is chaired by the Union Finance Minister.
Its other members are the Union State Minister of Revenue or Finance and Ministers in-charge of Finance or Taxation of all the States.
