Why Petrol & Diesel Excluded From GST? Kerala High Court Seeks GST Council's Response

The Kerala High Court on Monday directed the GST council to explain why petrol and diesel were not included within the ambit of Goods and Services Tax (GST).

A Division Bench comprising Chief Justice S. Manikumar and Justice Shaji P Chaly asked the GST council to file a statement in this regard within ten days. The Court was adjudicating upon a petition filed by Kerala Pradesh Gandhi Darshanvedhi challenging the decision of the GST council.

The petitioner, represented by Advocate Arun Varghese, stated that due to different rates of tax levied by the State governments under their fragment taxing policies, currently petrol and diesel were charged differently across the country.

According to the petitioner, this was an impediment in the way of achieving a harmonized national market as contemplated under Article 279 of the Constitution.

The petitioner also contended that due to an increase in the prices of petrol and diesel, there has been a hike in fares of vehicles causing a lot of problems for the common man. He argued that this situation will further lead to a price hike in essential commodities, thereby creating a high increase in the cost of living.

'The unprecedented hike in the price of petrol and diesel pushes the public into immense hardship by which their right to life guaranteed under Article 21 of the Constitution is violated', the plea reads.

The Court entertained the petition and sought reasons for the GST Council not acting upon the same.

Advocate Arun B Varghese appeared for the petitioner, while Standing Counsel for Central Board of Excise and Customs P.R. Sreejith and ASGI P. Vijayakumar appeared for the respondents in the matter.

Case Title: Kerala Pradesh Gandhi Darshanvedhi v. Union of India.