Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles SMS News Highlights
        Home        
Extracts
Home List
← Previous Next →

GST ON PETROLEUM PRODUCTS Need for review of of the Statutory Provisions

Goods and Services Tax - GST - By: - Sasidharan Gopalakrishnan - Dated:- 9-6-2017 Last Replied Date:- 30-12-1899 - When GST is implemented, the Central Excise Duty (CENVAT) leviable under the Central Excise Act 1944 (CE Act) will get replaced by CGST under the CGST Act 2017 (CGST Act) for all commodities including petroleum products falling under Chapter 27 of HSN, except for the five specified petroleum products, excluded from GST for the time being.. These five petroleum products viz. Petroleu .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

f sub-section (2), there shall be levied a tax called the central goods and services tax on all intra-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 and at such rates, not exceeding twenty per cent., as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person. (2) The central tax on the supp .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ection Sec 3 (vide The Taxation Laws Amendment Act 2017). This new Sec 3 of the CE Act authorizes levy & collection of Duty of Excise (CENVAT) at rates set forth in the Fourth Schedule, The Fourth Schedule which is inserted in CE Act through this amendment, is the extract of the existing First Schedule of Central Excise Tariff Act 1985, but containing only those items for which CENVAT is proposed to be continued. The GST Rate Schedule for Goods, finalized by the GST Council, prescribes the r .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ive specified petroleum products are sought to be excluded from GST by express mentioning of such excluded products, in the Rate Schedule against the appropriate entry for the goods under the relevant HSN Chapter heading. In this backdrop, when one analyses the new statutory provisions, it appears that the new provisions with respect to Petroleum Products do not achieve what exactly is sought to be achieved , as can be seen from the following: Sec 9(2) of GST Act states:… .The Central Tax .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

atural Gas has not been expressly excluded. This indicates a GST liability at prescribed rates for Natural Gas alongwith other gases falling under HSN Heading 2711. Under the newly inserted Fourth Schedule of Central Excise Act 1944, which seeks to prescribe cenvat rates only for items sought to be retained under CENVAT , the following entries appear: 2710 Petroleum oils and oils obtained from bituminous minerals, other than crude; preparations not elsewhere specified or included, containing by .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

aste oil 2710 12 - Light oils and preparations: - Motor spirit (Commonly known as petrol): 2710 12 11 - Special boiling point spirits (other than benzene, toluol) with nominal boiling point range 55-115 °C Kg. 14%+Rs. 15.00 per litre 2710 12 12 - Special boiling point spirits (other than benzene, toluene and toluol) with nominal boiling point range 63-70 °C Kg. 14%+Rs. 15.00 per litre 2710 12 13 - Other Special boiling points sprits (other than benzene, benzol, toluene and toluol) Kg. 14 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Jute batching oil and textile oil Kg. ….. 2710 19 80 - Lubricating oil Kg. ….. 2710 19 90 - Other Kg. ….. 2711 Petroleum gases and other gaseous hydrocarbons - Liquefied: 2711 11 00 - Natural gas Kg. 14% 2711 12 00 - Propane Kg. ….. 2711 13 00 - Butane Kg. ….. 2711 14 00 - Ethylene, propylene, butylene and butadiene Kg. ….. 2711 19 00 - Other Kg. ….. - In gaseous state: 2711 21 00 - Natural gas Kg. 14% 2711 29 00 - Other Kg. ….. It may be .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

boiling point range 55-115 °C; 2710 12 12 - Special Boiling Point Spirits: with nominal boiling point range 63-70°C; 2710 12 13 - Other Special Boiling Point Spirits 2710 12 19 - Other Special Boiling Spirits: Petrol .(commonly known as Petrol) Naphtha..(commonly known as Naphtha) Others..(other than Petrol and Naphtha) Out of the above, different categories of Motor Spirits, only one category of product under 2710 12 19 (commonly known as petrol) is to be excluded from GST (and consequ .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

th mentioning in this connection that the existence of Motor Spirit under distinct categories other than Petrol, has already been recognized under the Central Excise Tariff by providing for separate rates of Duty for Motor Spirit commonly known as Petrol , Naphtha and SBPS(other than Petrol & Naphtha), the first two vide separate effective rates /exemptions prescribed in notification issued under Sec. 5A and the the last one by the Tariff Entry itself.. Similar is the case of Light Oils & .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d 2711 21 00; But Natural Gas has been excluded while prescribing GST rate for Goods falling under 2711 in the GST Rate Schedule. This results in a situation Natural Gas falling under 2711 becomes simultaneously liable for CENVAT and GST. This needs to be corrected by express mention of exclusion of Natural Gas in the items under 2711 in GST Rate Schedule or providing exemption from GST for Natural under Sec. 11 of CGST Act. Summary: GST Rate schedule for Goods, finalised by GST Council, prescri .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Discussion Forum
what is new what is new
 


Share:            

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version