Most petroleum products to be taxed at 18% under GST regime

Petrol, diesel, ATF not under GST purview

by Dolly Basantani

On 18 May 2017, the GST Council broadly approved the rates for over 1,200 products under the Goods & Services Tax (GST). Nearly 81 per cent of the items will fall under below-18 per cent GST rate slabs and only 19 per cent of the goods will be taxed above 18 per cent.

Most of the petroleum products are proposed to be taxed at 18 per cent under GST. Following is the list of the products placed in this slab:

  • Petroleum oils and oils obtained from bituminous minerals, other than crude; preparations not elsewhere specified or included, containing by weight 70 per cent or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations; waste oils; such as superior kerosene oil, fuel oil, base oil, jute batching oil and textile oil, lubricating oil, waste oil.

  • Petroleum gases and other gaseous hydrocarbons, such as propane, butane, ethylene, propylene, butylene and butadiene.

  • Petroleum jelly: paraffin wax, micro-crystalline petroleum wax, slack wax, ozokerite, lignite wax, peat wax, other mineral waxes, and similar products obtained by synthesis or by other processes, whether or not colored.

  • Petroleum coke, petroleum bitumen and other residues of petroleum oils or of oils obtained from bituminous minerals.

  • Bitumen and asphalt, natural; bituminous or oil shale and tar sands; asphaltites and asphaltic rocks.

  • Bituminous mixtures based on natural asphalt, on natural bitumen, on petroleum bitumen, on mineral tar or on mineral tar pitch (for example, bituminous mastics, cut-backs).

Few other petroleum products will be taxed at a lower rate of five per cent. These are: (i) Kerosene (sold through the public distribution system) (ii) Liquefied propane and butane mixture, liquefied propane, liquefied butane and liquefied petroleum gas for supply to household domestic consumers or to non-domestic exempted category customers by the Indian Oil Corporation, Hindustan Petroleum Corporation or Bharat Petroleum Corporation.

At present, crude oil, natural gas, ATF, diesel and petrol are not in the purview of GST.

CMIE STATISTICS
Unemployment Rate
Per cent
3.5 -0.0
Consumer Sentiments Index
Base September-December 2015
96.7 -0.4
Consumer Expectations Index
Base September-December 2015
96.2 -0.6
Current Economic Conditions Index
Base September-December 2015
97.3 0.0
Quarterly CapeEx Aggregates
(Rs.trillion) Jun 16 Sep 16 Dec 16 Mar 17
New projects 1.46 2.37 1.42 2.92
Completed projects 0.91 2.21 0.91 1.77
Stalled projects 1.40 0.64 1.01 0.35
Revived projects 0.40 0.51 0.17 0.62
Implementation stalled projects 0.50 0.37 0.80 0.27
Updated on: 27 Jun 2017 4:20PM
Quarterly Financials of Listed Companies
(% change) Jun 16 Sep 16 Dec 16 Mar 17
All listed Companies
 Income -0.9 2.1 6.2 10.3
 Expenses -0.3 1.9 6.4 11.8
 Net profit -4.0 14.6 38.9 18.2
 PAT margin (%) 6.9 6.9 6.1 6.3
 Count of Cos. 4,519 4,489 4,484 4,289
Non-financial Companies
 Income -2.5 0.6 6.0 11.8
 Expenses -2.9 -0.2 7.4 15.5
 Net profit 9.7 26.7 23.4 -1.0
 PAT margin (%) 7.4 6.9 6.3 6.5
 Net fixed assets -9.2 7.7
 Current assets 8.1 2.5
 Current liabilities 11.6 9.3
 Borrowings 3.1 5.6
 Reserves & surplus 8.4 7.7
 Count of Cos. 3,515 3,491 3,491 3,346
Numbers are net of P&E
Updated on: 27 Jun 2017 4:30PM
Annual Financials of All Companies
(% change) FY13 FY14 FY15 FY16
All Companies
 Income 12.5 9.9 5.0 1.0
 Expenses 12.8 9.8 5.0 1.1
 Net profit 1.1 -2.1 2.0 -11.6
 PAT margin (%) 3.6 3.2 3.3 3.2
 Assets 14.3 12.2 9.3 8.1
 Net worth 9.6 9.5 8.6 7.4
 RONW (%) 6.8 6.2 6.2 5.6
 Count of Cos. 24,675 22,117 21,242 17,323
Non-financial Companies
 Income 11.8 9.6 4.1 0.0
 Expenses 12.2 9.2 4.2 -0.8
 Net profit -8.5 -2.4 -5.0 12.5
 PAT margin (%) 2.4 2.2 2.2 2.9
 Net fixed assets 12.9 11.6 13.0 12.4
 Net worth 7.8 8.6 7.3 6.7
 RONW (%) 5.5 5.1 4.9 5.9
 Debt / Equity (times) 1.1 1.1 1.1 1.0
 Interest cover (times) 2.1 1.9 1.9 2.1
 Net working capital cycle (days) 72 69 66 66
 Count of Cos. 19,170 17,554 16,934 14,134
Numbers are net of P&E
Updated on: 08 Jun 2017 2:48PM

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