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
4.8 -0.0
Consumer Sentiments Index
Base September-December 2015
94.7 0.0
Consumer Expectations Index
Base September-December 2015
94.8 0.0
Current Economic Conditions Index
Base September-December 2015
94.6 0.0
Quarterly CapeEx Aggregates
(Rs.trillion) Jun 17 Sep 17 Dec 17 Mar 18
New projects 2.36 1.34 1.30 2.28
Completed projects 0.87 1.21 1.05 1.26
Stalled projects 2.67 0.69 0.95 3.35
Revived projects 0.23 0.34 0.22 0.18
Implementation stalled projects 0.77 0.78 0.59 1.05
Updated on: 22 May 2018 9:20AM
Quarterly Financials of Listed Companies
(% change) Jun 17 Sep 17 Dec 17 Mar 18
All listed Companies
 Income 9.6 7.9 11.9 10.9
 Expenses 9.9 9.0 12.9 18.6
 Net profit -19.8 -18.1 -14.0 -62.8
 PAT margin (%) 5.3 5.5 4.9 3.2
 Count of Cos. 4,493 4,481 4,445 993
Non-financial Companies
 Income 10.2 8.2 13.2 12.7
 Expenses 10.5 8.1 12.4 14.0
 Net profit -25.1 -6.0 12.6 2.8
 PAT margin (%) 5.2 6.2 6.4 9.3
 Net fixed assets 9.2 18.1
 Current assets 78.6 8.6
 Current liabilities 11.0 11.1
 Borrowings 10.4 -5.7
 Reserves & surplus 5.2 9.8
 Count of Cos. 3,471 3,456 3,443 784
Numbers are net of P&E
Updated on: 22 May 2018 9:20AM
Annual Financials of All Companies
(% change) FY15 FY16 FY17 FY18
All Companies
 Income 5.6 1.8 5.5 3.6
 Expenses 5.7 1.9 5.5 2.8
 Net profit 0.0 -10.0 25.8 9.8
 PAT margin (%) 3.1 2.8 3.6 10.0
 Assets 9.5 10.1 7.1 7.1
 Net worth 8.5 11.3 6.6 5.1
 RONW (%) 5.8 4.9 6.0 15.5
 Count of Cos. 25,791 23,882 21,156 37
Non-financial Companies
 Income 4.8 0.9 5.3 3.0
 Expenses 5.0 0.3 5.6 2.0
 Net profit -8.2 19.0 20.5 10.6
 PAT margin (%) 2.0 2.4 3.0 8.7
 Net fixed assets 13.4 17.3 6.1 2.7
 Net worth 7.0 12.0 5.3 3.6
 RONW (%) 4.7 5.2 6.1 17.0
 Debt / Equity (times) 1.1 1.1 1.0 0.2
 Interest cover (times) 1.9 1.9 2.1 16.2
 Net working capital cycle (days) 66 65 62 27
 Count of Cos. 21,034 19,996 17,659 28
Numbers are net of P&E
Updated on: 20 May 2018 10:09PM

Time-series available from 2007-08 onwards