GST in India: Challenges in Enforcing GST on Petroleum Products

This paper is outlined to analyze the challenges faced by the Central Government in introducing GST on Petroleum Products in India. GST is the greatest tax transformation that has replaced several other Indirect taxes in India, including VAT, Excise duty and Service Tax. The study is going to examine how all the items have been included in the ambit of GST except Petroleum Products. GST aims on the ideology of “ONE NATION, ONE TAX” which simplified the taxation process and created a unified tax system for the entire country. GST is a kind of Value Added Tax which is imposed on almost all goods and services except Petroleum Products, in that case the study will discuss the objections on introducing GST on such products. The study will also examine the revenue dependency of both Central and State governments on these products. Presently, petroleum products are subject to Central Excise Duty, Value Added Tax and Central Sales Tax. Bringing these fuels under GST would require consensus among all states. The study will also analyze the positive and negative consequences of bringing such products under GST.