Pandemic cannot be cited as a reason for Non-Inclusion of Petroleum Products under GST: Kerala HC

Kerala Pradesh Gandhi Darshanvedhi Vs Union of India  (Kerala High Court)

Sri. P. R Sreejith, learned Standing Counsel for the Central Board of Indirect Taxes and Customs, handed over a copy of the letter dated 29^th November, 2021 of the Director of Goods and Services Tax Council, New Delhi and submitted that the petroleum products could not be brought under the GST regime.

2. Even though the matter was taken in the 45^th GST Council meeting, three issues seemed to have been considered by the Council, for bringing the petroleum products under the GST regime, i.e., (i) the matter involves high revenue implications, (ii) requires larger deliberations and (iii) during pandemic times, it would be difficult to bring petroleum products under GST regime. 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.

3. Further, pandemic period cannot be cited as a reason. It is well known that even during pandemic period, several decisions were taken involving revenue, after deliberations.

4. We direct Sri. P. R Sreejith, learned Standing Counsel for the Central Board of Indirect Taxes and Customs, to file a detailed statement with reference to the observations made above and the prayers sought for.

Post the matter in the second week of December, 2021 along with W.P.(C) No. 15055 of 2021.