Kerala High Court orders GST councils to list reason for not including petrol, diesel under GST

  • Gargi Chatterjee
  • 04:02 PM, 10 Nov 2021

Read Time: 03 minutes

Chief Justice S. Manikumar and Justice Shaji P Chaly the Kerala High Court on Monday asked the Goods and Services Tax (GST) Council why petroleum products can’t come under the GST and directed it to file a reply in ten days. The Court was adjudicating upon a petition filed by Kerala Pradesh Gandhi Darshanvedhi, against the state government’s decision holding that as there is no policy decision of the State Government to recommend to the GST Council to bring petrol and diesel under GST.

The pertitoner, represented by lawyer Arun Varghese, has submitted that due to the frequent rise in fuel prices, the cost of living of common man has gone up. So much so that it is causing immense hardship to the public and their righ ti life guaranteed under Article 21 of the Constitution. It is further contended that under the current system the price of fuel varies from state to state, and sought a uniform tax regime for petroleum products. Further, that this disparity is against harmonised national market as contemplated under Article 279(A) 6 of the constitution.

According to Hindustan Times, the petitioner have further contended that if petrol and diesel are brought under the GST, there will be a harmonious market throughout the nation and the maximum taxable rate will be 28%. Under the current system, state and central taxes amount to 60% of the fuel prices.

The has asked the (GST) Council reasons for not including petroleum products under GST to be filed within ten days.

Case Title: Kerala Pradesh Gandhi Darshanvedhi v. Union of India.