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Kerala HC dissatisfied by the reasons given on non-inclusion of Petroleum Products under GST by Centre

2 min read

Chaini Parwani –

Published On: December 2, 2021 at 14:30 IST

The Kerala High Court while expressing dissatisfaction towards the Centre stated that the ‘Pandemic is not an excuse for the Non-Inclusion of Petroleum products under GST’.

The Court noted, “We are not satisfied with the reasons. There should be some discussion and genuine reasons as to why petroleum products cannot be brought under the GST regime. Further, the pandemic period cannot be cited as a reason. It is well known that even during the pandemic, several decisions were taken involving revenue, after deliberations.”

The Public Interest Litigation (PIL) was filed through Advocate Arun B Varghese highlighting that the recent hike in Petrol and Diesel prices has devasted, on general economic stability and the lives of those from middle class households.

The Petitioner, Kerala Pradesh Gandhi Darshanvedhi alleged that the non-inclusion of petrol and diesel under the GST regime is Violation of Articles 14 and 21 of the Indian Constitution.

PR Sreejith representing the Central Board of Indirect Taxes and Customs (CBDT), delivered a copy of the letter from the Director of GST Council to submit that petroleum products cannot be brought under the GST regime.

At the 45th meeting of the GST Council, it was pronounced that it is not appropriate to include petrol and diesel within the boundary of GST at this stage.

Further the Petitioner challenged the decision and moved the Court by way of the present PIL.

Furthermore, the Bench Observed three issues to be considered while including petroleum products under GST:

  • The matter involves high revenue implications,
  • Requires larger deliberations and
  • During pandemic times, it would be difficult to bring petroleum products under the GST regime.