Expert panel recommends bringing petrol, diesel and ATF under GST

A seven-member expert panel has recommended bringing petrol, diesel, and aviation turbine fuel (ATF) under the GST regime, marking a significant proposal for taxation reform of petroleum products. The committee has suggested eliminating the existing 2% central sales tax currently levied on these fuels as part of the transition to the unified GST framework.

The panel's recommendation is grounded in the potential operational benefits of consolidating these petroleum products within the GST system. According to the experts, moving these fuels into the GST framework could improve inter-state fuel movement by streamlining the tax administration across state boundaries. Additionally, the panel believes this shift would facilitate a transition towards pipeline-based transportation infrastructure, which could enhance efficiency in fuel distribution networks across the country.

The proposal aims to modernize the taxation approach to petroleum products while addressing logistical challenges in the fuel supply chain. By bringing these essential commodities under the unified GST regime, the panel suggests the country could achieve better coordination between states and promote infrastructure development in fuel transportation.