Bring Petroleum Products Under GST? Kerala High Court Asks GST Council To Decide

The primary contention leveled in the PIL filed by Kerala Pradesh Gandhi Darshanvedi was that the petrol and diesel prices being sold at different rates across the country owing to difference in taxes among states.

The representation addressed to Chief Secretary, Government of Kerala, Thiruvananthapuram also submitted till a decision is taken by the GST Council, Government of Kerala may refrain from levying the state tax on petrol and diesel.

Adv. Arun B Varghese, while appearing for the petitioner, urged for the unification of tax on petrol and diesel citing that frequent inflations which was detrimental to the life of citizens. It was also submitted that the prices of common goods also increased with an increase in fuel prices.

It was also cited that although the petroleum marketing companies are empowered to decide fuel prices, the Union and the State governments had enthusiastically participated in the reduction of fuel prices prior to the elections. Therefore, all arguments to that effect were pushed to be discarded.

Accordingly, the PIL alleged that non-inclusion of petrol and diesel under the GST regime was violative of Article 14 and 21 of the Constitution of India, and a writ of mandamus was sought to include petrol and diesel under the GST regime.

The Standing Counsel for the GST Council cited a decision of the Division Bench of this court, where it was held that no mandamus can be issued to the GST Council to take any decision. He had further that submitted that Union of India is the competent authority to take a decision on the issue.

The Bench comprising Chief Justice S Manikumar and Justice Shaji P Chaly agreed with the Standing Counsel and held thus:

"We only direct the Goods and Services Tax Council to take an appropriate decision within a period of six weeks from the date of receipt of a copy of the representation."

Title: Kerala Pradesh Gandhi Darshanvedhi vs .Union Of India & Ors.