Policy

Petrol pumps selling non-oil products must enrol for GST: Adhia

Our Bureau New Delhi | Updated on January 11, 2018 Published on May 01, 2017

Revenue Secretary Hasmukh Adhia

Revenue Secretary Hasmukh Adhia

Revenue Secretary says new levy will help end tax terrorism

Petroleum products may be outside the ambit of the Goods and Services Tax, but petrol pump owners, who sell non-oil products, such as machine oil and distilled water, or operate convenience shops in their establishments, will have to register for the new levy.

“If petrol pump owners are selling other items like machine oil, then they will have to get enrolled for GST,” said Revenue Secretary Hasmukh Adhia in a Facebook Live session as part of the Finance Ministry’s awareness drive on the new tax regime. At present, petroleum products, including petrol, diesel, aviation turbine fuel, crude oil and natural gas, have been kept out of GST.

However, businesses with an annual turnover of up to ₹20 lakh will not have to register for GST or pay taxes.

The Revenue Secretary also said the Centre and States could at a later time choose to include petroleum products under GST, once revenue flows have stabilised.

“A large part of the income of States and the Centre comes for petroleum products,” he said, adding that States were concerned about a disruption in their income from these products under the new levy.

As much as 30-40 per cent of the income of States comes from potable alcohol and petroleum products.

Meanwhile, Adhia expressed confidence there would be no “tax terrorism” under GST.

“With the IT system of GST, taxpayers will not have to go to meet tax officials. We don’t want anyone to go to the tax department,” he assured, promising that there would be minimum interface with tax officials as long as assessees file their returns honestly.

He pointed out that both filing of returns as well as claims for refunds would be online under GST.

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Published on May 01, 2017
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