THE FEDERATION OF INDIAN PETROLEUM INDUSTRY (FIPI)€¦ · While the Central Government and manufacturing and refining oil companies are in favour of ... At the request of the Ministry

THE FEDERATION OF INDIAN PETROLEUM INDUSTRY (FIPI)

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Contents

A. Executive Summary 3

B. Overview 5

C. The detailed analysis 8

Methodology 8

Key observations 9

Contribution to Revenue 9

Revenue Neutral Rate Analysis 12

Global taxation: examples of multiple tax structure 13

Taxation structure in India 13

Alternate options for inclusion under GST 14

Impact on Prices 19

Impact on Allied sectors 19

Summary 20

D. Limitations and conclusion 22

E. Annexures 23

Impact Assessment Report

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Glossary of terms

Term Meaning

Agreed period 1 July 2016 to 30 June 2017

1 July 2017 to 30 June 2018

ATF Aviation Turbine Fuel

CENVAT Central Value Added Tax

CGST Act Central Goods and Services Tax Act, 2017

GSTN Goods and Services Tax Network

CST Central Sales Tax Act, 1956

CVD Countervailing Duty

ED Excise duty

Petroleum Products Crude, MS, HSD, ATF and Natural gas

FIPI Federation of Indian Petroleum Industry

GST Goods and Services Tax

HSD High Speed Diesel

ITC Input Tax Credit

MS Motor spirit (Commonly known as Petrol)

NCCD Natural Calamity Contingent Duty

OID Oil Industry Development Cess

Output tax Tax on outward supplies

RNR Revenue Neutral Rate

Stranding Reversal of input tax credit paid on inward supplies

VAT Value Added Tax

2016-17 1 July 2016 to 30 June 2017

2017-18 1 July 2017 to 30 June 2018


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A. Executive Summary

Background

To include or not to include! The debate over bringing petroleum products within the ambit of the

GST has been underway since the introduction of GST.

When GST was introduced, it subsumed almost all indirect taxes, and covered all goods and

services, except a few petroleum products and alcohol for human consumption. These were kept

out of the GST regime. These products have continued to be taxed separately by the Central

Government and the State Governments, as per the previous tax regime. While, petroleum

products are constitutionally included under GST, the date by when GST shall be levied on

excluded petroleum products, is still to be decided by the GST Council, as mandated by Article

279A (5) of the Constitution.

While the Central Government and manufacturing and refining oil companies are in favour of

bringing these petroleum products under the ambit of GST, there is resistance from the

manufacturing states as taxes on petroleum products are a major source of revenue to these

States. These States fear that the introduction of GST on petroleum products will radically impact

their tax revenues adversely. This is causing a lack of consensus amongst States and the Centre.

Objectives

At the request of the Ministry of Petroleum and Natural Gas (MoPNG), the Federation of Indian

Petroleum Industry (FIPI) has undertaken this study. The objective of this study is:

1. To analyse the impact of keeping petroleum products outside GST on oil and gas sector

and government revenues;

2. To provide recommendations on how these products can be brought under GST; and

3. To examine the impact of their inclusion on allied sectors.

The study takes into account the following parameters:

1. All excluded petroleum products should be brought under GST;

2. The Government as a whole must be revenue neutral;

3. Recommendations should be implementable within current constitutional and legal

framework; and

4. Central Government and the State Governments should continue to have autonomy for

revenue generation.

A total of 16 oil and gas entities, who are members of FIPI, participated in the study. The data

was provided by these entities for a two-year period; one year before and one year after GST

implementation. These periods were chosen so that they help to analyse the impact on revenues

both pre and post implementation of GST. As a part of the study, MoPNG shared the terms of

reference with FIPI which contains the list of activities to be analysed for the agreed period. The

terms of reference have been provided in the annexure to the report.

Summary findings

In order to ensure the Government as a whole remains revenue neutral, a revenue neutral tax

rate—the rate that ensures same government revenues post the implementation of the GST on all

petroleum products—is estimated. This is calculated as the ratio of State and Central tax revenues


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(that are going to be subsumed under GST) to local taxable turnover of sales (excluding

transactions at nil rate, and inter-oil co. transactions).

The revenue neutral rates (RNR) for the five petroleum products have been computed at -

35.15% for ATF; 25.09% for Crude; 81.36% for Diesel; 11.31% for Natural Gas; and 110.82%

for Petrol.

In addition to identifying the RNR, four options have been analyzed as to their effectiveness in

facilitating the inclusion of petroleum products under GST. Three of these options provide a

framework for retaining autonomy with the Central and/or State Government on taxation of the

petroleum products. Further if all the petroleum products are included under GST then there

should be no blocking of taxes. Therefore, one of the options considers the impact on Central

Government and the State Governments due to removing stranding of taxes. This option may not

be revenue neutral.

Further, the impact on pricing of petroleum products has been analysed. It has been found that

the inclusion of petroleum products into the scope of GST will most benefit those States with the

highest VAT rates. From industry perspective, the fertiliser and transport sectors will benefit the

most as they will be able to claim ITC, whilst the impact on the electricity sector is marginal.


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B. Overview

Introduction and overview of GST

The Goods and Services Tax (GST) went live on July 1, 2017. It replaced a myriad of Central,

State, inter-state, and local taxes, uniting the nation with common tax rates for both goods and

services across the Country. Calling the levy a "good and simple tax," the Prime Minister

expressed hope that the reform would herald the economic integration of India, streamline

businesses and boost the economy by removing barriers among India’s 28 states and 9 union

territories.

As GST nears two and a half years since its introduction, the goods and services network (GSTN),

along with the GST Council continues to simplify compliance processes and take measures to

improve ease of doing business in India. The changes are aimed at:

1. Correcting rates - to facilitate trade and affordability;

2. Easing compliance - e.g. by increasing thresholds for registration and simplification of

returns; and

3. Enforcing compliance – e.g. through automation (e.g. e-way bills, e-invoicing) and anti-

profiteering provisions.

GST was introduced with a four-tier GST rate structure (excluding diamond and jewelry)—5

percent, 12 percent, 18 percent and 28 percent. Additionally, a cess was levied over and above

the applicable rates on demerit goods such as aerated drinks, luxury cars, and cigarettes. Since

then, tax rates have been revised for many items, impacting several sectors, these include fast

moving consumer goods (FMCG), real estate, and restaurant services, among others. The

mandatory threshold limit for the GST registration has been doubled from an initial INR 20 lakh to

INR 40 lakh, thereby granting significant relief to small businesses.

The Government and senior GST officials have continued to interact with industry and trade

representatives to address various concerns arising post the implementation of GST and issues

specific to sectors including the Ministry of Micro, Small and Medium Enterprises (MSME). The

objective is to enable these representatives to express grievances and practical difficulties they

face on a daily basis. Based on the inputs and feedback from the industry, the GST Council has

been providing clarifications on a number of litigious issues including intermediary services, post

sales discount, taxability of transactions, etc, and is working toward achieving smooth operation

across the GST system.

The introduction of the e-way bill (electronic-way bill) has been a monumental shift from the

earlier ’Departmental Policing Model’ to a ’Self-Declaration Model’. New provisions in the e-way bill

system have been introduced, such as the auto calculation of distance based on PIN codes for the

generation of e-way bills and blocking the generation of multiple e-way bills on a single invoice.

The Government has been continuously paving the way to improve and automate the processes.

Further, the new GST return filing system is proposed to be introduced on the GST portal with

effect from 1 April 2020. The Government is deliberating on the approach and operational aspects

of the proposed e-invoicing system. Overall, the Government is continuing to work towards

making the GST more technology-driven.

Anti-profiteering provisions were inserted into the GST legislation to ensure companies pass on

savings from lower taxes and additional ITC to consumers. This was with a view to protecting


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consumers against spikes in prices after India’s largest tax reform was rolled out in 2017. To date,

the National Anti-profiteering Authority (NAA) has issued several orders pertaining to alleged

profiteering across sectors, primarily FMCG, hospitality and real estate sectors. In many cases,

manufacturers and dealers have been found to have not passed on the benefit to consumers. The

parties aggrieved by the negative orders of the NAA have challenged their respective orders

before the High Court. Many of those petitions are pending resolution. Initially the NAA was

formed, for two years, to examine compliance with the anti-profiteering provisions. Considering

the pendency of matters on hand, the tenure of NAA has been extended by two more years by the

GST Council. Additionally, the penal provisions under the anti-profiteering section was introduced

specifying a penalty of 10 percent of the profiteered amount, if companies don’t pay up the fine

within 30 days.

It can be seen that large number of deliberate changes have been implemented since the

introduction of GST. Further changes will continue to be made. The inclusion of the petroleum

products into the scope of GST could also be beneficial. The following study has been undertaken

to assess how this could be achieved.

Background - Petroleum products

The effective sales tax on fuel varies widely across states; on petrol, it generally ranges from 6

percent to 40 percent, while on diesel, it ranges from 6 percent to 35 percent. On the other hand,

the Centre levies a tax of approximately 60 percent on petrol and 40 percent on diesel. Taking the

Central and State taxes together, prices of each litre of petrol or diesel carries almost 100 percent

of taxes. To include petroleum products under GST, the Revenue Neutral Rate (RNR) for these

products could be as high as 100 percent, which although unacceptable, this is the reality of the

existing tax model and the way it is implemented.

The tax revenue from the petroleum sector to the central exchequer alone constitutes around 16

percent of the total tax revenue collected. In the financial year 2018-19, the total contribution of

the petroleum sector to the exchequer on account of petroleum products alone was INR 5,95,438

crores. Out of the total contribution, INR 3,65,113 crores (61 percent) was to the Central

exchequer and the remaining INR 2,30,325 crores (39 percent) was to State exchequers. In Delhi,

out of the total revenue of INR 38,400 crores, 12 percent (INR 4,455 crores) came from

petroleum products. In Maharashtra, of the total revenue of INR 1,88,931 crores, 15 percent (INR

29,093 crores) originated from petroleum products. The figures mentioned include a contribution

in the form of direct taxes as well.

Having said that, States are apprehensive that revenue loss will be significant if and when the

petroleum products are subsumed within GST, especially for the manufacturing states since GST

is a destination-based tax. States also fear that post GST, they will lose autonomy and the

flexibility to change rates of these products, which have aided in meeting revenue deficiencies and

emergency fund requirements in the past.

On the other hand, the Centre has constantly opposed keeping crude petroleum and natural gas

out of the GST ambit as it would result in the input tax credit (ITC) on capital goods and input

services incurred in the exploration and extraction being blocked, resulting in higher costs. The

former Finance Minister, Mr. Arun Jaitley said that, “As far as the Central Government is

concerned, we are in favour of bringing petroleum under GST. Let me categorically state this. But

we would await the consensus of the states and I do hope at some stage, sooner or later, the

states will agree to bring this inside GST."1

1ET Bureau, ”Including petro-products in GST ambit after consensus: Arun Jaitley”, The Economic Times, December 20, 2017, https://economictimes.indiatimes.com/news/economy/policy/including-petro-products-in-gst-ambit-after-consensus-arun-jaitley/articleshow/62133830.cms?from=mdr

https://economictimes.indiatimes.com/news/economy/policy/including-petro-products-in-gst-ambit-after-consensus-arun-jaitley/articleshow/62133830.cms?from=mdr

https://economictimes.indiatimes.com/news/economy/policy/including-petro-products-in-gst-ambit-after-consensus-arun-jaitley/articleshow/62133830.cms?from=mdr


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Various studies have been conducted to analyse the inclusion of petroleum products under GST.

One such study was conducted by the National Institute of Public Finance and Policy (NIPFP) to

explore policy options to include petroleum products under GST. The study recommended that the

government could introduce an additional regulatory levy on petroleum products and allow full ITC

for petroleum products up to a standard GST rate.

In this context, it is important to highlight that the total GST collections were targeted to be

around INR 1,25,000 crores per month. However, the average GST collections added up to only

INR 98,114 crores per month in FY 2018-19. Even though GST collections in FY 2018-19 have

improved compared to FY 2017-18 and the trend of GST collections indicates a steady rise in

overall gross collections, the collections still need to stabilise around INR 1,25,000 crores, to

achieve the GST revenue target. The inclusion of petroleum products under GST may further aid

the government in achieving GST targets.

Objectives of this study

The objectives of this study are three-folds:

1. To analyse the impact of keeping petroleum products outside GST on oil and gas sector

and government revenues;

2. To provide recommendations on how these products can be brought under GST; and

3. To analyse the impact of their inclusion on allied sectors.

The study takes into account the following parameters:

1. All excluded petroleum products should be brought under GST;

2. The Government as a whole must be revenue neutral;

3. Recommendations should be implementable within current constitutional and legal

framework; and

4. Central Government and the State Governments should continue to have autonomy for

revenue generation.

The activities involved in this study include:

1. Understanding and aligning on the tax related data and information collected from 16

major oil and gas companies;

2. Inputs and feedback from the industry members;

3. Insights from Deloitte subject matter experts; and

4. Insights from the major stakeholders from oil and gas industry on how to bring

improvements to the possible tax structure.


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C. The detailed analysis

Methodology

Estimating the revenue neutral rate

The study is focused on the concept of maintaining revenue neutrality. A revenue neutral tax rate

is the rate at which the Government can continue to earn the same revenue2 it is collecting today,

from the petroleum products overall, i.e. both at Central and State Governments level in

aggregate.

RNR has been calculated by taking all the State and Central tax revenues as the numerator (that

are going to be subsumed under GST) and local taxable turnover of sales (excluding transactions

at nil rate, and inter-oil co. transactions) as the denominator.

State and Central taxes include output tax on intra-state sales and inter-state sales, total

duties/taxes/cesses on manufacture and imports (CVD and SAD only). The GST stranding has

been added and specific VAT credits utilised have been reduced from the numerator. For crude,

NCCD and OID Cess has been considered.

In the denominator, all taxes on manufacture i.e. excise as well as blocked credit i.e. CVD and

SAD on import of finished products, have been deducted to arrive at the denominator, so as to

bring it at par with the net transaction value under GST. For crude, all local sales as well as inter-

state sales have been considered to arrive at denominator, considering crude is for further

processing and is not sold as such and elimination of inter-state sales will misrepresent the

results.

The methodology has been depicted below:

Based on the above methodology, the revenue neutral rate has been arrived at for different

petroleum products.

2 The data used in this study has been sourced from 16 oil and gas companies and covers the period 2016-17 and 2017-18. This data is indicative of the national level data for petroleum products.


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Key observations

Contribution to Revenue

The aggregate output taxes are INR 4,21,306 crores in 2016-17 and INR 4,43,754 crores in 2017-

18. The gross tax collection is inclusive of NCCD and OID cess on crude. The increase of INR

22,448 crores in 2017-18 is primarily due to increase in sales volume of the products.

The gross tax collections are highest in the state of Maharashtra followed by Gujarat and Uttar

Pradesh. Maharashtra has the highest gross tax collection on most of the petroleum products

except natural gas. The collection of taxes from natural gas is highest in the state of Gujarat.

The heat map below shows the output tax collection from the petroleum products across the

country:

The chart below summarizes product and state-wise output tax collections:

Source for charts and graphs: Data provided by 16 oil and gas companies who participated in the study. Detailed representation has been provided for in the annexures.


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The net tax contribution to exchequer was INR 4,01,477 crores in 2016-17 and INR 4,45,315

crores (including GST stranding) in 2017-18. The net tax contribution has been derived after

deducting VAT input tax credit utilised and adding GST stranding which is revenue to the

exchequer. The increase in tax contribution of INR 43,838 crores in 2017-18 is on account of

increase in sales volumes of the products and due to GST reversals.

The charts below provide the product-wise breakup of net tax contribution:



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The analysis of the data for 2016-17 and 2017-18 demonstrated an increased tax cost was

incurred by the oil companies because input tax credit of GST paid on costs could not be claimed.

In 2016-17, the value of total tax reversals was INR 9,305 crores. This increased to INR 18,043

crores following the introduction of GST out of which INR 14,805 crores was GST related tax

stranding.

The aggregate available ITC in 2016-17 was INR 29,130 crores and considering reversals of INR

9,305 crores, net ITC utilised was INR 19,829 crores. The reversals were mainly due to restricted

service tax (upstream companies) and VAT credits (mid- stream companies).

In 2017-18, the aggregate available ITC was of INR 16,980 crores and after considering reversals

of INR 3,238 crores, net ITC utilised was INR 13,741 crores. The reversal is mainly on account of

restricted VAT for midstream companies. In addition, there is an additional GST ITC stranding of

INR 14,805 crores, attributable to petroleum products. Taking together, for 2017-18 the total tax

reversals were 18,043 crores.

Incremental tax stranding in 2017-18 as compared to 2016-17, is INR 8,738 crores. The

incremental tax stranding is the highest in case of Diesel (INR 4,579 crores) followed by Petrol

(1,837 crores) and Crude (INR 1,107 crores).



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The chart below provides the product-wise incremental stranding:

Revenue Neutral Rate Analysis

Based on the methodology adopted, RNR for the five petroleum products is arrived as below:

• ATF : 35.15%;

• Crude : 25.09%;

• Diesel : 81.36%;

• Natural Gas : 11.31%;

• Petrol : 110.82%



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At the derived RNR, if all petroleum products are included under GST, the contribution of taxes to

the states would increase as tax collections will be distributed in equal proportion as compared to

current scenario where the Central share is higher than those of the States. At product level, the

Central government will gain on ATF and natural gas as currently VAT is the main tax collected on

these products. However, for Crude, Diesel and Petrol the State Governments will gain as

currently Central taxes are higher on these products.

Global taxation: examples of multiple tax structure

A number of countries in addition to India have a multi-tiered structure for petroleum products.

The examples include Brazil, Canada and China which are some of the world’s largest oil

producing countries.

Fossil fuels in Brazil are subject to variety of taxes levied at federal, state and municipal levels.

Brazil’s indirect tax system includes the levy of consumption taxes such as excise duty and CIDE

fuel-tax on petroleum products at the federal level. Gasoline is subject to state tax (standard rate

plus excise) at 38 percent, federal tax at 12 percent and fuel tax (CIDE) – at 3 percent which

combines to 53 percent of total tax. Other indirect taxes levied include ICMS at state level and

service tax at Municipality level. ICMS is a consumption tax that operates in a manner similar to

value-added taxes and is levied at the state level on products imported from other states or

overseas. ICMS is levied at 12-30 percent according to the product and the state where it is

consumed. There are exemptions from taxes to fossil fuels in certain cases at federal and the

municipality level.

Canada’s indirect tax system is a combined landscape that encompasses a federal VAT known as

the Goods and Services Tax/Harmonized Sales Tax (GST/HST), along with various provincially

regulated, more traditional, sales and use taxes known as provincial sales taxes (PST). GST/HST

is applicable at the rate of 15 percent, 13 percent and 5 percent in different provinces of Canada.

Other taxes that specifically apply to the oil and gas industry are fuel and carbon taxes which

include excise tax at a flat rate of 10 cents per litre on gasoline (in effect since 1995) and 4 cents

per litre on diesel (in effect since 1987). Furnace oil, natural gas and propane are exempt from

this tax. The carbon tax rate varies, based on the type of fossil fuel used. In Alberta province, the

oil and gas industry is largely exempt from the carbon tax until 2023. The federal carbon charge

for natural gas is 3.91 cents per cubic metre (m3). This charge is expected to increase annually

each April.

China has imposed 5 percent tariffs on the import of US crude starting from September 1, 2019.

VAT is payable at a rate of 5 percent on the crude oil and natural gas produced from an oil (gas)

field operated under a Sino-foreign PSC. The purchase of goods (including equipment and

materials) supplied in China is subject to VAT, generally at the standard rate of 17 percent.

Consumption tax is levied on the petroleum products which is calculated based on the volume of

sales and related fixed tax rate. Consumption tax is levied on petrol at $0.21 per litre and diesel

at $0.17 per litre. Apart from the above, local levies in China include city construction tax (CCT),

education surcharge (ES) and local education surcharge (LES). The extra indirect tax cost to an

offshore oil production project would be equivalent to 6 percent of VAT payments, adding CCT, ES

and LES together, whereas for onshore oil production projects it could be equivalent to 12 percent

of VAT payments should the project be located in a city.

Taxation structure in India

In addition to GST on the supply of goods, for specified goods, there is an additional levy called

compensation cess. Similarly there are goods which are subject to multiple levies, such as

cigarettes on which there is excise duty, GST and GST compensation cess. Section 18 of The

Constitution (One Hundred and First Amendment) Act, 2016 empowers Parliament, by law, on the

recommendations of the GST Council, to provide for compensation to the states for loss of


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revenue arising on account of implementation of Goods and Services Tax for a period of 5 years.

By exercising the above power, the Parliament has enacted the Goods and Service Tax

(Compensation to States) Act, 2017, effective from 1 July 2017, to compensate the state for loss

of revenue. This has resulted in the levy of compensation cess on certain commodities at specified

rates. Similarly, a central cess may be introduced on similar lines on petroleum products to

ensure that no state unduly benefits post inclusion of the petroleum products in the GST

framework. The GST Council in its 32nd meeting, to mobilise revenue for natural calamities, has

empowered the state of Kerala to levy the Kerala Flood Cess on specified intra state supplies of

goods or services or both at a rate not exceeding 1 percent for a period of 2 years. This was

introduced by exercising powers under Article 246A(1) read with Article 279A(4)(f) of the

Constitution of India. The Government of Punjab has also recently introduced levy of cess on

specified goods (Diesel and Petrol) via the Punjab Urban Transport Fund Act, 2019. This cess was

introduced by exercising the powers given under Article 246 read with Entry 54 of List II of

Seventh Schedule to the Constitution of India. On similar lines, a state cess may be introduced on

petroleum products to compensate any loss on account of introduction of these products under

GST and retaining autonomy for changing the tax rates at a state level.

Alternate options for inclusion under GST

Set out below are four alternate options which if implemented could lead to the successful

integration of the petroleum products within the scope of GST.

Option 1: Minimal base rate plus central and/or state cess to maintain autonomy for

both central and state

Under this option, the base rate will be kept at minimum within the existing scheduled tax rate

bracket and for petrol and diesel it is suggested to keep under the maximum cap of 40 percent. In

addition, Central and/or State Government will have to introduce cess [under Article 246A of

Constitution of India] to ensure existing tax collection. Considering there will be different rates of

tax across states, keeping the base rate at higher will unduly benefit most of the states.

The main benefit under this option is that Central and State Governments will have autonomy to

manage their revenues. For any change in cess (upward or downward), Central and State

Governments will have to reach out to GST Council. This can be achieved through legislative

amendments. However, under this option, there may be difference in rates applicable on

petroleum products across states.

Tax Rate Structure under GST

*The cess amount has been divided equally between Centre and State for the purpose of calculations. However, the actual

rates may differ from those shown in the above table.


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At the above mentioned rates if all the products are brought in, the Central Government revenue

will fall by INR 22,942 crores and States will gain by INR 27,022 crores. The difference in

gain/loss is on account of rounding of RNR.

The chart below provides the comparative analysis of tax contribution to the Central and State

Government post inclusion under GST:

Source for charts and graphs: Data provided by 16 oil and gas companies who participated in the study.

Detailed representation has been provided for in the annexures.

Option 2: Eliminate GST related tax stranding (INR 14,805 crores) by introducing

nominal GST rates

Under this option, petroleum products will continue to be taxed under the existing regime.

However to eliminate GST ITC stranding, petroleum products should be included under GST, with

GST being set at nominal rates. In this scenario, downstream companies will be in a position to

claim input tax credit of GST paid on Crude consumed in refineries.

The main benefit under this option is that GST related tax stranding will be reduced as the oil

companies will be eligible for ITC of GST paid on costs. The Government collection will be revenue

neutral and oil companies will be benefited. Central and State governments will retain autonomy

to manage their revenues as per existing regime.

Central and State Governments will have to reach out to the Council for any change in the GST

tax rate (upward or downward). However, given three separate taxes/duties will be leviable on

the manufacture/sale of the petroleum goods. This will lead to further complexity in the

administration of taxes. The compliance burden will also increase since companies will have to file

returns under old as well as new tax regime. Government may also have to recalibrate the taxes

and duties (under legacy laws) to keep the customers tax neutral.

In the formula for deriving the tax rate under this option, in the numerator only product-wise GST

related tax stranding has been considered (INR 14,805 crores).


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At the rates proposed above if all the products are brought in, the Centre and the States will

receive additional revenue on petroleum products of INR 630 crores each. However, the GST paid

on inputs will be available as a credit to oil companies. Therefore, the Government will be in a

revenue neutral position under this scenario.



Source for charts and graphs: Data provided by 16 oil and gas companies who participated in the study.

Detailed representation has been provided for in the annexures.

If this option is implemented then all products will need to be brought under GST as bringing only

one or two products will not be effective. It is important to note that under this option, VAT will

remain chargeable on the petroleum products and therefore will continue to remain cost to those

businesses that utilise the petroleum products in the production of GST goods and services. This

therefore is a partial solution.


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Option 3: Eliminate the entire tax stranding – All products brought in

Although the premise is to maintain revenue neutrality, given the key principle of GST is to ensure

free flow of ITC, ideally there should not be any tax stranding at all in the hands of oil companies.

Hence an option has been considered which results in zero tax blockage.

If this option is implemented then the landed price to consumers is likely to be reduced to the

extent of removal of the tax stranding. Also, the oil companies will be benefited by reduced tax

stranding on petroleum goods. This can be achieved through legislative amendments. Within this

option, split between Centre and State cess option has been considered to provide autonomy to

Centre and state government to manage their revenues. However, under this option the Central

and State Governments will lose part of their current revenues on account of the removal of ITC

stranding.

In the formula for deriving tax rate under this option, in the numerator the total ITC available is

deducted (i.e. entire tax stranding on account of CENVAT, VAT and GST reversal has not been

considered).


At the above mentioned rates if all the products are brought in, the Centre will forgo INR 33,386

crores and States will gain in the region of 16,577 crores.




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Option 4: Inclusion of only natural gas and ATF under GST

Considering the difficulty in bringing all the petroleum products under GST, there is a merit in

exploring the benefits of including some of the petroleum products under GST.

ATF and natural gas, are likely to be among the first set of petro products to be included in the

GST. Recently, Union Petroleum Minister Dharmendra Pradhan made a strong appeal to the

Hon’ble Finance minister for bringing ATF and natural gas under the ambit of GST to reduce

multiplicity of taxes and improve business climate. Even earlier, Mr Pradhan had made a strong

case for the inclusion of natural gas in GST, saying that if polluting coal can be included, the

environment-friendly fuel certainly deserves a place in the new tax regime. The Ministry of

Petroleum and Natural Gas had already made a request for their inclusion in GST and the Finance

Ministry could consider placing the proposal in further meetings of the Council.

The inclusion of ATF under GST would allow airlines to recover ITC on the GST paid thus bringing

down the effective cost of the products. The civil aviation ministry had also written to the finance

ministry seeking the inclusion of ATF under GST with full ITC at the earliest. Inclusion of gas

would not pose a challenge for the GST Council as it is largely an industrial product where a

switchover to the new taxation would not be difficult. The revenue implication for the States is

also low in the case of this switchover. It will also aid in making the proposed gas trading hub a

success. A single and predictable tax rate would make it easier for the market.

The revenue neutral rate for ATF is around 36 percent. The GST rate of 34 percent is

recommended because GST stranding will be removed. Bringing ATF at the existing slab rate of 18

percent would lead to loss of revenue to the Centre and the States. Hence, an additional Central

and/or State cess may be levied as a top-up to augment the revenue deficit. Even though the

revenue neutral rate for natural gas is 12 percent, it is recommended to cap it to 5 percent when

brought under GST. Any tax rate above 5 percent may create inefficiency for mid-stream and

downstream companies. Bringing ATF under GST will benefit corporate travelers the most as they

would be able to claim credit on GST paid while paying their output taxes.

India is aiming to build a gas trading hub to help develop the domestic gas market, and the

downstream regulator, Petroleum and Natural Gas Regulatory Board (PNGRB), is developing

regulations for the proposed hub. The inclusion of natural gas under GST would be necessary to

make the proposed gas trading hub a success, according to the chief of PNGRB. Currently the tax


19

rates on natural gas vary from state to state and as a result there will be confusion in trading gas

on the hub without GST. India currently imports about half of the gas it consumes. The

Government plans to increase the share of gas in India’s primary energy mix from current 6

percent to 15 percent by 2030. Natural gas pipelines are set to expand to 28,000 km by 2023-end

from the current 16,000 km, and the capacity of liquefied natural gas (LNG) import terminals are

planned to be doubled to 55 million tonnes per annum in three years. Including natural gas within

GST regime would facilitate these aims by simplifying and reducing tax costs.

Impact on Prices

There is much merit in the argument that bringing petroleum products under the ambit of the GST

may simplify the way petrol and diesel are priced in the country. However, the State Governments

are reluctant to adopt GST for petroleum products and do not want to forego the asymmetric

petrol revenue gains. Today different states have different sales taxes or VAT for petrol and

diesel, and this creates anomalous price dispersion of oil across states and cities.

The inference that GST on petrol and diesel will bring down the two transport fuels’ retail prices

may not be true. The tax rates recommended on these products is determined considering the

revenue neutrality to the Government at both Central and State level. Moreover, the additional

cost on account of GST related tax stranding is currently being absorbed by companies as tax cost

and not loaded into the final price to consumers. However, considering free flow of credit post

GST, this additional cost is expected to be fully available as credit in the hands of oil companies.

This leads to the tax neutral situation in case of GST stranded taxes. The evaluation of the impact

on price of petrol and diesel under different options is dependent on the current VAT rates in

different states. The analysis shows that the states with a low VAT rate have the maximum price

increase and those with a high VAT rate have a much lower price increase.

Impact on Allied sectors

The petroleum products that are currently excluded are also principal inputs for many services

such as fertilisers, electricity, and transport, among others. Natural gas remains one of the most

important fossil fuel energy resources in India. Prime customers of natural gas are the power and

nitrogenous fertiliser industries. It is the main and preferred feedstock for urea manufacture. In

addition, because of its clean combustion characteristics, natural gas is the choice of fuel for many

sections of the Indian industry. However, natural gas has been outside the GST and attracts 15

percent VAT in various states. As a result, fertiliser companies are not able to claim input tax

credit for taxes paid on finished goods. The non-inclusion of natural gas in GST, which accounts

for 75 percent of the cost of production, has become a key issue for urea manufacturers.

The electricity production/transmission and distribution sector will also benefit from natural gas

being included in GST. It will help in making gas cheaper and affordable for the stranded gas-

based power plants in the country. Currently, electricity is taxed under Electricity Act by states.

Transmission or distribution of electricity by an electricity transmission or distribution utility is

wholly exempted from the GST. Hence, the electricity companies will remain unaffected even if

natural gas comes within the ambit of GST. However, if it comes with the GST tax rate lower than

the current tax rate of 15 percent, the companies will benefit in the form of reduced stranded

taxes. Also, there is no constitutional bar on the levy of GST on electricity. In other words, the

levy of electricity duty by states on consumption or sale of electricity can co-exist with the levy of

GST on electricity. In future when electricity is taxed under GST then it is possible to structure the

rates so as to benefit the power sector enabling free flow of credit.

Petroleum products, mainly ATF, petrol and diesel, are subject to the levy of central excise and

state specific VAT regulations. The introduction of uniform fuel price across states will be very

useful for transporters/ transport sector. It will increase cost-effectiveness in the transport sector


20

by enabling free flow of credit leading to reduction in overall cost and time. This is because each

state in India operates under a different tax rate with dynamic fuel prices, making it difficult to

track fuel payments in case of multi-state transport. Under the GST regime, uniform prices will

help transporters in better planning and improving operational efficiencies. Inclusion of ATF in

GST would allow airlines to take input tax credit on the GST paid thereby bringing down effective

cost. It would also benefit corporate travelers as they would be able to claim credit of GST against

their output tax liability.

Summary

According to the data provided by the 16 companies, tax collections have gone up in FY 2017-18

compared to FY 2016-17, on account of an increase in sales volumes of products and due to the

additional stranding of ITC under the GST. Further, the comparative analysis of revenue

collections shows that in FY 2017-18, revenue base shifted from the Central Government to State

Governments at the product as well as at gross levels.

However, it has been observed that the amount of input tax paid on goods and services required

for manufacturing these products and their consumption by allied industries (for which no ITC can

be claimed) has increased post the implementation of the GST. This has led to additional ITC

stranding for oil companies. It was also found that the total incremental ITC stranding post GST

implementation was INR 8,738 crores. Analysis of ITC data depicts that the total incremental ITC

stranding is the highest in case of diesel followed by petrol and crude. In FY 2017-18, GST-related

tax stranding alone was INR 14,805 crores. Based on feedback from industry members during the

course of this study, it was also found that additional tax stranding by oil companies accruing due

to GST on inputs/input services, was fully absorbed by oil companies and not passed on to final

consumers.

The estimated revenue neutral rates (RNR) for the five petroleum products are:

• 35.15% for ATF;

• 25.09% for Crude;

• 81.36% for Diesel;

• 11.31% for Natural Gas; and

• 110.82% for Petrol.

After arriving at RNR rates, various options were analyzed for inclusion of petroleum products

under GST. Since multi-tax structure exist globally (including in India), we chose to explore this

option as well as for this analysis. Four identified options for bringing petroleum products at the

derived tax rates are as follows:

Option 1 provides a revenue neutral rate and vests powers with both the Centre and State level

to levy their own cesses;

Option 2 sets out a dual structure under which tax continues to be raised under the existing

regime with the addition of a nominal GST rate to cover losses to oil companies arising because of

GST-related tax stranding;

Option 3 sets out a basis at which both VAT and GST stranding is removed wherein Centre and

States will have to forego a part of their revenues pertaining to ITC stranding. This will also see

the end of VAT being charged on the petroleum products; and

Option 4 provides partial transitional move to GST by bringing only natural gas and/or ATF under

GST. It is recommended a 5 percent rate is levied on natural gas to avoid any further adverse

impact on petroleum industry in the form of ITC stranding. ATF can be brought under any of the


21

options suggested, after considering the pros and cons of each of the options. Under this option,

VAT would also remain chargeable on the other three petroleum products.

Subsequently, the impact on petrol and diesel prices was evaluated under different options, which

is dependent on the current VAT rates in different states. The findings suggests that States with a

low VAT rate witnesses the maximum price increase, and those with a high VAT rate sees a much

lower price increase.

The analysis of the impact on allied sectors shows that the overall fertiliser and transport sectors

will benefit if petroleum products are brought under the GST ambit, since these sectors will be

able to claim ITC on taxes paid on petroleum products used as inputs for their manufacturing.

Since, electricity has been exempted under GST, this sector will remain marginally unaffected with

the inclusion of petroleum products under GST.


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D. Limitations and conclusion

The current status of the economy and the ease of doing business criterion will determine the

options recommended and the goods that could be brought under GST. Each option has its own

pros and cons and depending on the mutual agreement between the Centre and the States, the

appropriate option needs to be considered. While Option 1 seeks at providing a revenue neutral

rate and vests powers with both the Centre and state to levy their own cesses, this option defeats

the purpose of the GST, which is to have a universal and standard tax rate across all states. The

multiple tax structure, as envisaged in Option 2, may distort the system and go against the “one

nation, one-market” concept. With the 3rd option, the government will likely lose on the entire

revenue on account of tax stranding. Under the alternate options as suggested above, the

provisions of Section 171 (Anti-profiteering) will have to be evaluated considering the impact of

changed tax rates post GST on prices of these products and any increase in ITC eligibility. Oil

companies may face challenges in complying with Section 171, which needs to be addressed.

The study shows that the exclusion of petroleum products has a larger impact on oil and gas

industries and consumers of petroleum products, as it leads to ITC stranding and consequentially,

an increase in the prices of consumer goods. Having said that, it is advisable to bring all the

petroleum products under the GST rather than keeping them outside because of the positive

impact that may have on the oil and gas industry, the other allied sectors, as well as oil

companies. These advantages include simplified and consistent compliances and reduced tax costs

through the supply chain.

Introducing all the petroleum products into GST at the same time will improve efficiency in the

economy and increase cost-effectiveness in the related sectors by enabling free flow of credit,

reducing the overall cost of production. That said, bringing petroleum products under GST will

require oil companies to comply with transitional and other GST provisions, which could lead to

teething issues and short term pains related to implementation.

Given the potential opposition from the States on bringing petroleum products under the GST, the

Government could choose to include these products within the GST ambit in phases. In the first

phase, two of the five petroleum products, mainly ATF and natural gas, can be considered to be

taxed under GST. Gradually the other products may get included in the subsequent phases. If

natural gas is included, the GST paid on inputs and services used for producing natural gas can be

set off against taxes on its sale. Natural gas should be brought under the GST at an early stage to

maximise benefits of affordability. It is recommended to bring natural gas under GST at the rate

of 5 percent, considering any rate exceeding 5 percent may create inefficiencies for mid-stream

and downstream companies. Similarly, if ATF is also included, it would benefit the airline industry

by enabling corporate travelers to claim ITC.


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E. Annexures

1. As part of the study, MoPNG had shared the terms of reference with FIPI which include the

following:

Sr.No. Particulars Covered

1 Contribution of tax revenue viz. taxes, duties, levies and cess on

petroleum products from 2014-15 to 2017-181. Company wise

(Public & Private companies) & product wise for Centre and States.

Yes

2 Comparative analysis of tax revenue collection for Centre and

States on petroleum products during 2014-15 to 2017-181 with

2009-10 to 2013-141.

Yes

3 Analysis of impact on State finances for the petroleum products

presently under the ambit of GST compared to pre GST regime.

Yes

4 Company wise details of input tax credit claimed against State taxes

and Central taxes from 2014-15 to 2017-181.

Yes

5 Analysis of impact of input tax credit impact due to keeping the

excluded petroleum products outside the ambit of GST.

Yes

6 Various possible scenarios for inclusion of excluded petroleum

products under GST slabs2, other scenarios (including revenue

neutral scenarios/ phased wised inclusion of excluded petroleum

products etc.) & its second stage impact on other petroleum

products that are in GST3.

Yes

7 Probable impact on the State finances due to implementation of

GST for petroleum products under various scenarios.

Yes

8 Taxation structure on petroleum products across major economies

of the world.

Yes

9 Sector wise direct tax incidence and cascading effects. No

10 Analysis of impact of variation in prices of petroleum product due to

changing tax rates across different states4.

Yes

11 The details of the best practices adopted by different States in

course of implementation of the GST.

No

1 The agreed period 1 July 2016 to 30 June 2017 and 1 July 2017 to 30 June 2018. 2 Data for 1 July 2017 to 30 June 2018 has been considered for arriving at Revenue Neutral Rate (RNR) and collections

post inclusion in GST under various options. 3 The second stage impact on other petroleum products that are in GST has not been included in scope. 4 Impact of variation in prices of petroleum products in the supply chain is not considered.


24

2. The 16 oil and gas companies which are the members of Federation of Indian Petroleum

Industry had participated in the study. These entities included Bharat Oman Refineries Limited

(BORL), Bharat Petroleum Corporation Limited (BPCL), British Petroleum (BP), Cairn India,

Chennai Petroleum Corporation Limited (CPCL), Gas Authority of India Limited (GAIL), HPCL-

Mittal Energy Limited (HMEL), Hindustan Petroleum Corporation Limited (HPCL), Indian Oil

Corporation Limited (IOCL), Mangalore Refinery and Petrochemicals Limited (MRPL), Nayara

Energy Limited, Numaligarh Refinery Limited (NRL), Oil India, Oil and Natural Gas Corporation

(ONGC), Reliance Industries Limited (RIL) and Shell. The tax related data gathered from this

16 oil and gas companies was used for the purpose of this study. The agreed period for the

study is 1 July 2016 to 30 June 2017 and 1 July 2017 to 30 June 2018. The period’s one year

pre and post the implementation of GST was selected to get the actual impact of GST on these

products.

3. Output tax collection3 from the petroleum products across the country (INR crores)

State 2016-17 2017-18 Rise/(fall)

Andaman & Nicobar Islands 63 81 18

Andhra Pradesh 9,037 9,046 9

Arunachal Pradesh 60 71 10

Assam 2,637 3,387 750

Bihar 4,829 5,693 864

Chandigarh 56 56 -0

Chhattisgarh 3,313 3,870 557

Dadra & Nagar Haveli - 0 0

Daman & Diu 1 2 1

Delhi 3,780 4,565 784

Goa 629 579 -49

Gujarat 21,230 21,510 280

3 This includes only state taxes namely VAT, Cess/surcharge and CST.


25

Haryana 7,098 8,148 1,050

Himachal Pradesh 292 350 59

Jammu & Kashmir 1,089 1,379 290

Jharkhand 2,780 3,281 501

Karnataka 11,262 13,975 2,712

Kerala 6,805 7,779 974

Madhya Pradesh 10,656 11,493 838

Maharashtra 24,548 28,424 3,876

Manipur 124 172 48

Meghalaya - - -

Mizoram 40 77 37

Nagaland 81 89 8

Orissa 4,222 5,066 844

Puducherry 9 9 0

Punjab 8,061 9,084 1,023

Rajasthan 11,011 12,380 1,369

Sikkim 103 115 13

Tamil Nadu 12,600 16,374 3,774

Telangana 7,731 9,109 1,378

Tripura 201 218 17

Uttar Pradesh 16,981 18,245 1,265

Uttarakhand 1,309 1,455 146

West Bengal 6,374 7,435 1,061

Total 1,79,011 2,03,518 24,507

4. Product wise and state wise output tax contribution4 from the petroleum products (INR Crores)

2016-17

State ATF Crude Diesel Natural gas Petrol Total

Andaman & Nicobar Islands 11 - 45 - 6 63

Andhra Pradesh 6 65 5,893 373 2,700 9,037

Arunachal Pradesh 1 - 38 - 22 60

Assam 150 484 1,128 176 699 2,637

Bihar 26 - 3,102 - 1,701 4,829

Chandigarh 27 - 9 0 19 56

Chhattisgarh 5 - 2,336 - 972 3,313

Dadra & Nagar Haveli - - - - - -

Daman & Diu 1 - - - - 1

4 This includes only state taxes namely VAT, Cess/surcharge and CST.


26

Delhi 771 - 1,150 39 1,820 3,780

Goa 56 - 420 - 153 629

Gujarat 239 523 11,650 3,502 5,315 21,230

Haryana 52 - 5,159 94 1,793 7,098

Himachal Pradesh 8 - 176 0 108 292

Jammu & Kashmir 58 - 562 - 469 1,089

Jharkhand 6 - 1,917 - 857 2,780

Karnataka 215 - 6,866 - 4,182 11,262

Kerala 116 - 3,624 67 2,997 6,805

Madhya Pradesh 48 - 6,448 145 4,014 10,656

Maharashtra 775 1,226 12,557 1,201 8,790 24,548

Manipur 4 - 55 - 64 124

Meghalaya - - - - - -

Mizoram 1 - 20 - 20 40

Nagaland 2 - 35 - 43 81

Orissa 15 - 3,087 - 1,120 4,222

Puducherry - - 4 - 5 9

Punjab 62 - 4,855 11 3,133 8,061

Rajasthan 112 340 7,259 148 3,152 11,011

Sikkim - - 66 - 37 103

Tamil Nadu 158 30 7,739 106 4,566 12,600

Telangana 117 - 5,087 5 2,523 7,731

Tripura 4 - 66 72 59 201

Uttar Pradesh 128 1,134 8,770 1,054 5,895 16,981

Uttarakhand 6 - 740 4 560 1,309

West Bengal 458 - 4,061 0 1,855 6,374

Total 3,636 3,802 1,04,925 6,997 59,651 1,79,011

2017-18

State ATF Crude Diesel Natural gas Petrol Total

Andaman & Nicobar Islands 16 - 57 - 8 81

Andhra Pradesh 8 62 5,808 438 2,730 9,046

Arunachal Pradesh 5 - 41 - 24 71

Assam 176 611 1,477 189 934 3,387

Bihar 44 - 3,762 - 1,888 5,693

Chandigarh 23 - 11 3 20 56

Chhattisgarh 8 - 2,726 - 1,136 3,870

Dadra & Nagar Haveli - - - 0 - 0


27

Daman & Diu 1 - - 1 - 2

Delhi 1,077 - 1,468 60 1,960 4,565

Goa 57 - 295 - 227 579

Gujarat 287 647 11,516 4,476 4,584 21,510

Haryana 64 - 5,943 125 2,016 8,148

Himachal Pradesh 12 - 209 1 129 350

Jammu & Kashmir 74 - 722 - 583 1,379

Jharkhand 10 - 2,301 - 970 3,281

Karnataka 405 - 8,639 - 4,931 13,975

Kerala 149 - 3,964 208 3,457 7,779

Madhya Pradesh 99 - 6,792 146 4,456 11,493

Maharashtra 964 1,421 13,887 1,015 11,137 28,424

Manipur 7 - 77 - 87 172

Meghalaya - - - - - -

Mizoram 2 - 42 - 33 77

Nagaland 0 - 42 - 47 89

Orissa 21 - 3,686 0 1,359 5,066

Puducherry 0 - 3 - 6 9

Punjab 80 - 5,448 3 3,552 9,084

Rajasthan 146 414 7,948 209 3,663 12,380

Sikkim - - 74 - 41 115

Tamil Nadu 264 42 9,629 116 6,323 16,374

Telangana 113 - 6,069 5 2,922 9,109

Tripura 9 - 70 72 67 218

Uttar Pradesh 180 - 9,877 1,459 6,729 18,245

Uttarakhand 14 - 782 7 653 1,455

West Bengal 232 - 5,097 1 2,106 7,435

Total 4,547 3,197 1,18,461 8,533 68,780 2,03,518

5. Product and transaction wise tax contribution (Gross taxes) (INR crores)

Product Name

2016-17

Intra-state Inter-state Central taxes5 CVD/SAD Total taxes

ATF 3,536 99 1,724 51 5,410

Crude 3,158 644 13,534 - 17,336

Diesel 1,02,731 2,193 1,55,840 1,419 2,62,183

Natural gas 6,834 163 - - 6,997

Petrol 59,106 545 69,280 447 1,29,378

Total 1,75,366 3,645 2,40,378 1,918 4,21,306

Product Name

2017-18

Intra-state Inter-state Central taxes5 CVD/SAD Total taxes

ATF 4,408 138 2,246 - 6,792

Crude 2,415 782 16,308 - 19,505

Diesel 1,15,185 3,276 1,50,834 428 2,69,723

Natural gas 7,415 1,117 - - 8,532

Petrol 68,144 636 70,297 123 1,39,200

Total 1,97,568 5,949 2,39,686 551 4,43,754

5 Central taxes include Excise duty, NCCD and OID Cess.


28

6. Transaction wise net tax contribution to the Central and State Government (INR crores)

Particulars 2016-17 2017-18

Central taxes State taxes Total taxes Central taxes State taxes Total taxes

Output taxes 2,42,295 1,79,011 4,21,306 2,40,237 2,03,518 4,43,754

Credit utilised (-) 6,671 13,159 19,829 - 13,244 13,244

GST reversal (+) - - - 7,403 7,403 14,805

Net tax revenue 2,35,625 1,65,852 4,01,477 2,47,639 1,97,676 4,45,315

Tax revenue (%) 58.69% 41.31% 100% 55.61% 44.39% 100%

7. Product and transaction wise net tax contribution to the Central and State Government (INR

crores)

Product Name

2016-17

Intra-state

Inter-state

Central taxes6

CVD/SAD CENVAT Specific ITC

Common ITC

Total taxes

ATF 3,536 99 1,724 51 364 307 67 4,673

Crude 3,158 644 13,534 - - 131 - 17,205

Diesel 1,02,731 2,193 1,55,840 1,419 4,643 6,476 189 2,50,875

Natural gas 6,834 163 - - - 2,350 2 4,646

Petrol 59,106 545 69,280 447 1,663 3,555 82 1,24,078

Total 1,75,366 3,645 2,40,378 1,918 6,671 12,818 340 4,01,477

Product Name

2017-18

Intra-state

Inter-state

Central taxes6

CVD/SAD CENVAT Specific ITC

ITC reversal (GST)

Total taxes

ATF 4,408 138 2,246 - - 423 264 6,635

Crude 2,415 782 16,308 - - - 6,306 25,812

Diesel 1,15,185 3,276 1,50,834 428 - 6,612 4,669 2,67,780

Natural gas 7,415 1,117 - - - 2,549 1,715 7,699

Petrol 68,144 636 70,297 123 - 3,660 1,850 1,37,390

Total 1,97,568 5,949 2,39,686 551 - 13,244 14,805 4,45,315

6Central taxes include Excise duty, NCCD and OID Cess.


29

8. Product wise net tax contribution to the Central and State Government (INR crores)

Product Name

2016-17 2017-18

Central taxes State taxes Total taxes Central taxes State taxes Total taxes

ATF 1,411 3,262 4,673 2,379 4,256 6,635

Crude 13,534 3,672 17,205 19,462 6,350 25,812

Diesel 1,52,616 98,259 2,50,875 1,53,596 1,14,184 2,67,780

Natural gas - 4,646 4,646 858 6,841 7,699

Petrol 68,064 56,014 1,24,078 71,345 66,045 1,37,390

Total 2,35,625 1,65,852 4,01,477 2,47,639 1,97,676 4,45,315


30

9. ITC details – (Centre and State taxes separately) (INR crores)

Product Name

2016-17 (State taxes) 2017-18 (State taxes)

Available Utilised Reversed Available7 Utilised8 Reversed9 GST reversal10

ATF 392 374 18 434 433 - 132

Crude 633 131 502 577 - 577 3,153

Diesel 6,782 6,665 117 6,696 6,676 19 2,335

Natural gas 3,795 2,352 1,444 4,943 2,550 2,393 858

Petrol 3,666 3,637 29 3,690 3,683 7 925

Total 15,268 13,159 2,110 16,339 13,342 2,997 7,403

Product Name

2016-17 (Central taxes) 2017-18 (Central taxes)

Available Utilised Reversed Available Utilised Reversed11 GST reversal12

ATF 377 364 13 14 9 5 132

Crude 5,274 - 5,274 - - - 3,153

Diesel 4,802 4,643 162 448 279 169 2,335

Natural gas 1,688 - 1,688 - - - 858

Petrol 1,721 1,663 59 179 112 67 925

Total 13,862 6,671 7,195 641 400 241 7,403

10. Total ITC details (Centre and State taxes together) (INR crores)

Product Name

2016-17 2017-18

Available Utilised Reversed Available Utilised Reversed13

ATF 769 738 31 448 442 270

Crude 5,907 131 5,776 577 - 6,883

Diesel 11,584 11,308 279 7,144 6,955 4,857

Natural gas 5,483 2,352 3,132 4,943 2,550 4,108

Petrol 5,387 5,300 88 3,869 3,795 1,925

Total 29,130 19,829 9,305 16,980 13,741 18,043

7 Any Input GST has not been considered as ITC available since petroleum products are excluded from the purview of GST. 8 Out of total state taxes of INR 13,342 crores, specific VAT credit of INR 13,244 crores has been considered for RNR

working. 9 This consists of reversals of VAT paid on inputs. 10 GST paid on inputs and input services pertaining to excluded petroleum products has been considered as reversed since

the same is not available as ITC. 11 CENVAT credits utilised for 2017-18 (w.r.t. Petrol, Diesel and ATF) has not been considered for RNR working, since post GST these are the only petroleum products taxable under Excise and it is unlikely the same are used as input in manufacture of same product. 12 GST paid on inputs and input services pertaining to excluded petroleum products has been considered as reversed since

the same is not available as ITC. 13 This includes VAT, CENVAT and GST reversals for the period 2017-18.


31

11. Product-wise incremental ITC stranding (INR crores)

Product Name 2016-17 2017-18 Incremental

ATF 31 270 239

Crude 5,776 6,883 1,107

Diesel 278 4,857 4,579

Natural gas 3,132 4,108 976

Petrol 88 1,925 1,837

Total 9,305 18,043 8,738

12. Revenue Neutral Rate for five petroleum products


32

Product Numerator (INR Crores) Denominator (INR Crores) RNR (%)

ATF 6,635 18,874 35.15%

Crude 25,812 1,02,856 25.09%

Diesel 2,67,780 3,29,110 81.36%

Natural Gas 7,699 68,064 11.31%

Petrol 1,37,390 1,23,972 110.82%

Total 4,45,315 6,42,876

13. Tax contribution – current vs inclusion in GST at suggested RNR (i.e. RNR bifurcated equally

between Centre and States) (INR crores)

• Tax contribution to the Central and State Government at suggested RNR Product Name

Taxable turnover CGST (%) CGST SGST (%) SGST Total taxes

ATF 18,874 17.58 3,317 17.58 3,317 6,635

Crude 1,02,856 12.55 12,906 12.55 12,906 25,812

Diesel 3,29,110 40.68 1,33,890 40.68 1,33,890 2,67,780

Natural gas 68,064 5.66 3,849 5.66 3,849 7,699

Petrol 1,23,972 55.41 68,695 55.41 68,695 1,37,390

Total 6,42,876 2,22,658 2,22,658 4,45,315

• Current vs inclusion in GST at suggested RNR

Product Name

Central taxes State taxes

Current Inclusion in GST Increase/ (Decrease)

Current Inclusion in GST

Increase/ (Decrease)

ATF 2,379 3,317 939 4,256 3,317 -939

Crude 19,462 12,906 -6,556 6,350 12,906 6,556

Diesel 1,53,596 1,33,890 -19,706 1,14,184 1,33,890 19,706

Natural gas 858 3,849 2,992 6,841 3,849 -2,992

Petrol 71,345 68,695 -2,650 66,045 68,695 2,650

Total 2,47,639 2,22,658 -24,982 1,97,676 2,22,658 24,982

• State-wise tax contribution to the Central and State Government at suggested RNR (All

Products) State Current tax Estimated tax Rise/(fall) Rise/(fall) %

Central taxes1 2,47,639 2,22,658 -24,982 -10%

State taxes1 1,97,676 2,22,658 24,982 13%

Meghalaya 0 - -0 -100%

Dadra & Nagar Haveli 0 0 -0 -64%

Daman & Diu 2 1 -1 -42%

Andhra Pradesh 9,232 8,182 -1,051 -11%


33

Gujarat 16,895 16,965 70 0%

Tamil Nadu 16,574 16,934 360 2%

Kerala 7,911 8,088 177 2%

Telangana 9,165 9,373 209 2%

Assam 4,097 4,275 178 4%

Bihar 5,824 6,223 399 7%

Madhya Pradesh 10,432 11,175 743 7%

West Bengal 7,647 8,257 610 8%

Maharashtra 27,987 30,434 2,447 9%

Chhattisgarh 3,889 4,243 355 9%

Delhi 4,432 4,931 499 11%

Orissa 5,273 5,877 604 11%

Jharkhand 3,292 3,885 593 18%

Uttar Pradesh 18,416 21,930 3,514 19%

Punjab 7,006 8,508 1,502 21%

Karnataka 14,207 18,326 4,119 29%

Rajasthan 12,753 16,592 3,839 30%

Jammu & Kashmir 1,386 1,866 480 35%

Sikkim 115 161 46 40%

Chandigarh 54 76 22 40%

Haryana 8,141 11,473 3,332 41%

Himachal Pradesh 355 557 202 57%

Uttarakhand 1,233 1,946 713 58%

Tripura 222 355 133 60%

Manipur 172 278 105 61%

Puducherry 9 15 6 63%

Nagaland 89 147 58 65%

Goa 586 966 380 65%

Arunachal Pradesh 74 147 73 98%

Mizoram 77 158 80 104%

Andaman & Nicobar

Islands

82 314 232 283%

1INR 86 cr. on account of offshore GST reversal – CGST (50%) and SGST (50%) portion is included in current Central and State taxes

respectively.

• State-wise tax contribution to the Central and State Government at suggested RNR (ATF) State Current tax Estimated tax Rise/(fall) Rise/(fall) %

Central taxes 2,379 3,317 939 39%

State taxes 4,256 3,317 -939 -22%


Arunachal Pradesh 6 1 -4 -78%

Haryana 65 26 -39 -60%

Delhi 946 460 -486 -51%

Kerala 155 81 -75 -48%

Bihar 45 24 -21 -47%

Tamil Nadu 274 145 -129 -47%

Karnataka 412 226 -186 -45%

West Bengal 242 141 -101 -42%

Jammu & Kashmir 75 44 -30 -40%

Himachal Pradesh 12 7 -5 -40%

Assam 191 118 -73 -38%

Madhya Pradesh 101 69 -32 -32%

Gujarat 236 174 -62 -26%

Uttarakhand 14 11 -3 -22%

Daman & Diu 1 1 -0 -22%

Manipur 7 6 -2 -22%

Mizoram 2 1 -0 -22%

Chandigarh 22 18 -4 -18%

Rajasthan 148 126 -22 -15%

Uttar Pradesh 182 163 -20 -11%

Tripura 9 9 -0 -3%


34

Dadra & Nagar Haveli - - - 0%

Sikkim - - - 0%

Puducherry 0 0 0 6%

Goa 58 65 7 11%

Maharashtra 809 935 126 16%

Punjab 56 75 19 33%

Telangana 117 173 56 48%

Andaman & Nicobar

Islands

16 24 9 55%

Orissa 24 65 41 168%

Jharkhand 11 40 30 279%

Chhattisgarh 8 32 24 283%

Andhra Pradesh 11 54 43 393%

Nagaland 0 3 2 1198%

• State-wise tax contribution to the Central and State Government at suggested RNR (Crude) State Current tax Estimated tax Rise/(fall) Rise/(fall) %

Central taxes1 19,462 12,906 -6,556 -34%

State taxes1 6,350 12,906 6,556 103%

Andaman & Nicobar

Islands

- - - 0%

Bihar - - - 0%

Chandigarh - - - 0%

Chhattisgarh - - - 0%


Daman & Diu - - - 0%

Delhi - - - 0%

Goa - - - 0%

Haryana - - - 0%

Himachal Pradesh - - - 0%

Jammu & Kashmir - - - 0%

Jharkhand - - - 0%

Karnataka - - - 0%

Kerala - - - 0%

Madhya Pradesh - - - 0%

Manipur - - - 0%

Meghalaya - - - 0%

Mizoram - - - 0%

Nagaland - - - 0%

Orissa - - - 0%

Puducherry - - - 0%

Punjab - - - 0%

Sikkim - - - 0%

Telangana - - - 0%

Uttar Pradesh - - - 0%

Uttarakhand - - - 0%

West Bengal - - - 0%

Tamil Nadu 72 104 33 45%

Assam 1,057 1,538 482 46%

Gujarat 1,247 1,948 701 56%

Maharashtra 2,932 5,220 2,289 78%


Tripura 0 1 1 246%


Rajasthan 875 3,631 2,756 315%


respectively.


35

• State-wise tax contribution to the Central and State Government at suggested RNR (Diesel) State Current tax Estimated tax Rise/(fall) Rise/(fall) %

Central taxes 1,53,596 1,33,890 -19,706 -13%

State taxes 1,14,184 1,33,890 19,706 17%


Andhra Pradesh 5,926 5,106 -820 -14%

Assam 1,619 1,573 -46 -3%



Telangana 6,109 6,264 155 3%

Gujarat 8,939 9,169 230 3%

Chhattisgarh 2,739 2,813 74 3%

Orissa 3,837 3,959 122 3%

Kerala 4,124 4,256 132 3%

Tamil Nadu 9,747 10,275 529 5%

Bihar 3,855 4,122 267 7%

Rajasthan 7,879 8,713 835 11%

West Bengal 5,253 5,815 563 11%

Madhya Pradesh 6,240 6,999 759 12%

Jharkhand 2,309 2,675 367 16%

Maharashtra 12,866 14,924 2,058 16%

Delhi 1,497 2,046 549 37%

Karnataka 8,812 12,311 3,499 40%

Uttar Pradesh 10,014 14,111 4,097 41%

Goa 298 427 129 43%

Punjab 4,142 5,965 1,823 44%

Haryana 5,949 8,728 2,780 47%

Sikkim 74 114 40 53%

Jammu & Kashmir 726 1,122 396 54%


Uttarakhand 672 1,172 500 74%


Nagaland 42 77 35 84%

Manipur 77 148 71 92%

Tripura 70 158 87 124%


Mizoram 42 97 55 131%


Andaman & Nicobar

Islands

58 242 184 318%

• State-wise tax contribution to the Central and State Government at suggested RNR (Natural

Gas) State Current tax Estimated tax Rise/(fall) Rise/(fall) %

Central taxes1 858 3,849 2,992 349%

State taxes1 6,841 3,849 -2,992 -44%

Jharkhand 0 - -0 -100%

Assam 239 76 -163 -68%

Daman & Diu 1 0 -1 -66%


Orissa 0 0 -0 -62%


Andhra Pradesh 371 144 -227 -61%

Uttar Pradesh 1,437 612 -825 -57%

Punjab 3 1 -2 -55%

Gujarat 3,202 1,468 -1,734 -54%


Tripura 76 59 -16 -21%


36

Tamil Nadu 113 89 -24 -21%

Maharashtra 753 689 -64 -9%

Haryana 122 120 -3 -2%

Rajasthan 205 205 -0 0%

Andaman & Nicobar

Islands

- - - 0%

Arunachal Pradesh - - - 0%

Bihar - - - 0%


Goa - - - 0%


Karnataka - - - 0%

Manipur - - - 0%

Meghalaya - - - 0%

Mizoram - - - 0%

Nagaland - - - 0%

Puducherry - - - 0%

Sikkim - - - 0%

Kerala 69 81 12 17%


West Bengal 0 1 0 50%

Telangana 1 2 1 86%

Delhi 63 201 138 220%

Uttarakhand 7 40 33 488%


respectively.

• State-wise tax contribution to the Central and State Government at suggested RNR (Petrol) State Current tax Estimated tax Rise/(fall) Rise/(fall) %

Central taxes 71,345 68,695 -2,650 -4%

State taxes 66,045 68,695 2,650 4%


Maharashtra 10,628 8,666 -1,962 -18%

Andhra Pradesh 2,779 2,418 -360 -13%

Punjab 2,805 2,467 -338 -12%

Assam 991 970 -21 -2%

Tamil Nadu 6,369 6,320 -49 -1%

Telangana 2,937 2,934 -3 -0%



Madhya Pradesh 3,937 4,048 111 3%

Kerala 3,563 3,670 107 3%

Uttar Pradesh 6,783 7,044 261 4%

West Bengal 2,152 2,300 148 7%

Rajasthan 3,647 3,917 270 7%

Bihar 1,924 2,077 153 8%

Sikkim 41 47 6 15%

Delhi 1,926 2,223 298 15%

Karnataka 4,983 5,790 807 16%

Jammu & Kashmir 585 699 114 19%

Jharkhand 973 1,169 196 20%

Chhattisgarh 1,141 1,398 256 22%

Gujarat 3,271 4,206 934 29%

Haryana 2,005 2,599 594 30%

Orissa 1,412 1,853 441 31%



Manipur 87 123 36 41%

Nagaland 47 67 20 43%



37



Mizoram 33 59 26 76%

Tripura 67 128 61 91%

Goa 230 474 244 106%

Andaman & Nicobar

Islands

8 47 39 478%

14. Computation of taxes under option 1 i.e. Minimal base rate plus central and/or state cess to

maintain autonomy for both the Central and State Government(INR crores)

• Tax rate structure under GST

*The cess amount has been divided equally between Centre and State for the purpose of calculations. However, the actual

rates may differ from those shown in the above table.


Central taxes

Taxable turnover CGST (%) CGST Cess (%) Cess Total CGST

ATF 18,874 9.00% 1,699 9.00% 1,699 3,397

Crude 1,02,856 6.00% 6,171 6.50% 6,686 12,857

Diesel 3,29,110 20.00% 65,822 21.00% 69,113 1,34,935

Natural gas 68,064 2.50% 1,702 3.50% 2,382 4,084

Petrol 1,23,972 20.00% 24,794 36.00% 44,630 69,424

Total 6,42,876 1,00,188 1,24,509 2,24,697

Product Name

State taxes


ATF 18,874 9.00% 1,699 9.00% 1,699 3,397

Crude 1,02,856 6.00% 6,171 6.50% 6,686 12,857

Diesel 3,29,110 20.00% 65,822 21.00% 69,113 1,34,935

Natural gas 68,064 2.50% 1,702 3.50% 2,382 4,084

Petrol 1,23,972 20.00% 24,794 36.00% 44,630 69,424

Total 6,42,876 1,00,188 1,24,509 2,24,697


38


Product Name





ATF 2,379 3,397 1,019 4,256 3,397 -859

Crude 19,462 12,857 6,605 6,350 12,857 6,507

Diesel 1,53,596 1,34,935 -18,661 1,14,184 1,34,935 20,752

Natural gas 858 4,084 3,226 6,841 4,084 -2,757

Petrol 71,345 69,424 -1,921 66,045 69,424 3,379

Total 2,47,639 2,24,697 -22,942 1,97,676 2,24,697 27,022



Central taxes1 2,47,639 2,24,697 -22,942 -9%

State taxes1 1,97,676 2,24,697 27,022 14%



Daman & Diu 2 1 -1 -40%

Andhra Pradesh 9,232 8,256 -977 -11%

Gujarat 16,895 17,167 272 2%

Tamil Nadu 16,574 17,090 516 3%

Telangana 9,165 9,458 293 3%

Kerala 7,911 8,167 256 3%

Assam 4,097 4,299 202 5%

Bihar 5,824 6,277 454 8%

Madhya Pradesh 10,432 11,278 846 8%

West Bengal 7,647 8,331 684 9%

Maharashtra 27,987 30,687 2,700 10%

Chhattisgarh 3,889 4,281 392 10%

Orissa 5,273 5,930 656 12%

Delhi 4,432 4,994 562 13%

Jharkhand 3,292 3,919 627 19%

Uttar Pradesh 18,416 22,156 3,740 20%

Punjab 7,006 8,583 1,577 23%

Karnataka 14,207 18,489 4,282 30%

Rajasthan 12,753 16,703 3,950 31%

Jammu & Kashmir 1,386 1,883 497 36%

Sikkim 115 163 47 41%


39


Haryana 8,141 11,577 3,436 42%


Uttarakhand 1,233 1,966 732 59%

Tripura 222 361 139 63%

Manipur 172 280 108 63%


Nagaland 89 149 59 66%

Goa 586 976 390 67%


Mizoram 77 159 82 106%

Andaman & Nicobar

Islands

82 317 235 287%


respectively.


Central taxes 2,379 3,397 1,019 43%

State taxes 4,256 3,397 -859 -20%



Haryana 65 27 -38 -59%

Delhi 946 471 -475 -50%

Kerala 155 83 -73 -47%

Bihar 45 24 -21 -46%

Tamil Nadu 274 148 -126 -46%

Karnataka 412 231 -181 -44%

West Bengal 242 145 -97 -40%



Assam 191 120 -70 -37%


Gujarat 236 179 -57 -24%


Daman & Diu 1 1 -0 -20%

Manipur 7 6 -1 -20%

Mizoram 2 1 -0 -20%


Rajasthan 148 129 -18 -13%


Tripura 9 9 -0 -1%


Sikkim - - - 0%

Puducherry 0 0 0 9%

Goa 58 67 8 14%


Punjab 56 77 21 37%

Telangana 117 177 60 51%

Andaman & Nicobar

Islands

16 25 9 59%

Orissa 24 66 42 174%

Jharkhand 11 41 31 288%





Central taxes1 19,462 12,857 -6,605 -34%


40

State taxes1 6,350 12,857 6,507 102%

Andaman & Nicobar

Islands

- - - 0%

Bihar - - - 0%

Chandigarh - - - 0%




Delhi - - - 0%

Goa - - - 0%

Haryana - - - 0%



Jharkhand - - - 0%

Karnataka - - - 0%

Kerala - - - 0%


Manipur - - - 0%

Meghalaya - - - 0%

Mizoram - - - 0%

Nagaland - - - 0%

Orissa - - - 0%

Puducherry - - - 0%

Punjab - - - 0%

Sikkim - - - 0%

Telangana - - - 0%




Tamil Nadu 72 104 32 45%

Assam 1,057 1,533 476 45%

Gujarat 1,247 1,941 694 56%

Maharashtra 2,932 5,201 2,269 77%


Tripura 0 1 1 244%


Rajasthan 875 3,617 2,743 314%


respectively.


Central taxes 1,53,596 1,34,935 -18,661 -12%

State taxes 1,14,184 1,34,935 20,752 18%


Andhra Pradesh 5,926 5,146 -780 -13%

Assam 1,619 1,585 -34 -2%



Telangana 6,109 6,313 204 3%

Gujarat 8,939 9,240 301 3%


Orissa 3,837 3,990 153 4%

Kerala 4,124 4,289 166 4%

Tamil Nadu 9,747 10,356 609 6%

Bihar 3,855 4,154 300 8%

Rajasthan 7,879 8,781 903 11%

West Bengal 5,253 5,861 608 12%

Madhya Pradesh 6,240 7,054 813 13%

Jharkhand 2,309 2,696 388 17%


41

Maharashtra 12,866 15,040 2,174 17%

Delhi 1,497 2,062 565 38%

Karnataka 8,812 12,407 3,595 41%

Uttar Pradesh 10,014 14,221 4,207 42%

Goa 298 430 133 45%

Punjab 4,142 6,011 1,870 45%

Haryana 5,949 8,796 2,848 48%

Sikkim 74 115 40 55%

Jammu & Kashmir 726 1,131 405 56%


Uttarakhand 672 1,181 509 76%


Nagaland 42 78 36 85%

Manipur 77 150 72 93%

Tripura 70 159 89 126%


Mizoram 42 98 56 133%


Andaman & Nicobar

Islands

58 244 186 321%



Central taxes1 858 4,084 3,226 376%

State taxes1 6,841 4,084 -2,757 -40%


Assam 239 80 -159 -66%

Daman & Diu 1 0 -1 -64%


Orissa 0 0 -0 -60%



Uttar Pradesh 1,437 649 -788 -55%

Punjab 3 2 -2 -52%

Gujarat 3,202 1,557 -1,645 -51%


Tripura 76 63 -12 -17%

Tamil Nadu 113 95 -18 -16%


Andaman & Nicobar

Islands

- - - 0%


Bihar - - - 0%


Goa - - - 0%


Karnataka - - - 0%

Manipur - - - 0%

Meghalaya - - - 0%

Mizoram - - - 0%

Nagaland - - - 0%

Puducherry - - - 0%

Sikkim - - - 0%

Haryana 122 127 5 4%

Rajasthan 205 217 12 6%

Kerala 69 86 17 24%



42


Telangana 1 2 1 98%

Delhi 63 214 151 239%



respectively.


Central taxes 71,345 69,424 -1,921 -3%

State taxes 66,045 69,424 3,379 5%


Maharashtra 10,628 8,758 -1,870 -18%

Andhra Pradesh 2,779 2,444 -335 -12%

Punjab 2,805 2,494 -312 -11%

Assam 991 980 -11 -1%



Tamil Nadu 6,369 6,387 18 0%

Telangana 2,937 2,965 28 1%

Madhya Pradesh 3,937 4,091 154 4%

Kerala 3,563 3,709 146 4%

Uttar Pradesh 6,783 7,119 336 5%

West Bengal 2,152 2,325 173 8%

Rajasthan 3,647 3,958 311 9%

Bihar 1,924 2,099 175 9%

Sikkim 41 48 7 16%

Delhi 1,926 2,247 321 17%

Karnataka 4,983 5,851 868 17%

Jammu & Kashmir 585 706 121 21%

Jharkhand 973 1,181 209 21%

Chhattisgarh 1,141 1,413 271 24%

Gujarat 3,271 4,251 979 30%

Haryana 2,005 2,627 622 31%

Orissa 1,412 1,873 461 33%



Manipur 87 125 37 43%

Nagaland 47 68 21 44%




Mizoram 33 60 26 78%

Tripura 67 129 62 93%

Goa 230 479 249 108%

Andaman & Nicobar

Islands

8 48 39 485%

• Impact on price of Diesel at suggested RNR Taxes Current Post Inclusion

Delhi Maharashtra Telangana

Base Price 37.15 37.15 37.15 37.15

Freight etc 0.32 0.32 0.32 0.32

Add: Excise Duty 15.83 15.83 15.83 -

Add: Dealer Commission

(Average)

2.49 2.49 2.49 2.49

Transaction Value 55.79 55.79 55.79 39.96

Add: VAT at ~ (17% to 35%) 9.64 13.39 19.64 -

Add: CGST at 20% - - - 7.99


43

Add: SGST at 20% - - - 7.99

Add: Central Cess at 21% - - - 8.39

Add: State Cess at 21% - - - 8.39

Retail Selling Price 65.43 69.18 75.43 72.73

Increase/(Decrease) 11% 5% -4%

Note:

1. Price Buildup of Diesel at Delhi effective 16-Aug-19 as per IOCL (INR/Litre) is considered.

2. Price post inclusion is computed based on the assumption that there is no change in base price.

3. States are mentioned as per the representative tax rates – Low/Medium/High.

• Impact on price of Petrol at suggested RNR Taxes Current Post Inclusion

Delhi Tamil Nadu Maharashtra

Base Price 32.81 32.81 32.81 32.81

Freight etc 0.35 0.35 0.35 0.35

Add: Excise Duty 19.98 19.98 19.98 -


(Average)

3.55 3.55 3.55 3.55


Add: VAT at ~ (27% to 39%) 15.30 19.27 21.86 -

Add: CGST at 20% - - - 7.34

Add: SGST at 20% - - - 7.34





Note:

1. Price Buildup of Petrol at Delhi effective 16-Aug-19 as per IOCL (INR/Litre) is considered.



15. Computation of taxes under option 2 i.e. Elimination of GST related tax stranding (INR 14,805

Crores) with nominal GST rates (INR crores)



44


Central taxes

Taxable turnover14

CGST (%) CGST GST credit on Crude

Current taxes excluding reversal

Total CGST

ATF 21,120 1.25% 264 -101 2,246 2,408

Crude 1,02,856 3.25% 3,343 - 16,308 19,651

Diesel 4,80,372 1.00% 4,804 -2,308 1,51,262 1,53,758

Natural gas 68,064 1.50% 1,021 - - 1,021

Petrol 1,94,392 1.00% 1,944 -934 70,420 71,430

Total 8,66,804 11,375 -3,343 2,40,237 2,48,269

Product Name

State taxes

Taxable turnover10

CGST (%) CGST GST credit on Crude

Current taxes excluding reversal

Total CGST

ATF 21,120 1.25% 264 -101 4,124 4,286

Crude 1,02,856 3.25% 3,343 - 3,197 6,540

Diesel 4,80,372 1.00% 4,804 -2,308 1,11,849 1,14,345

Natural gas 68,064 1.50% 1,021 - 5,983 7,004

Petrol 1,94,392 1.00% 1,944 -934 65,120 66,130

Total 8,66,804 11,375 -3,343 1,90,273 1,98,306


Product Name





ATF 2,379 2,409 30 4,256 4,286 30

Crude 19,462 19,651 190 6350 6,540 190

Diesel 1,53,596 1,53,758 162 1,14,184 1,14,345 162

Natural gas 858 1,021 163 6,841 7,004 163

Petrol 71,345 71,430 85 66,045 66,130 85

Total 2,47,639 2,48,269 630 1,97,676 1,98,306 630



Central taxes1 2,47,639 2,48,269 630 0%

State taxes1 1,97,676 1,98,306 630 0%

14 Taxable turnover for computing GST is considered to be the value at which State VAT would be levied.


45



Assam 4,097 3,855 -242 -6%

Tripura 222 212 -11 -5%

Gujarat 16,895 16,514 -382 -2%

Kerala 7,911 7,738 -173 -2%

Orissa 5,273 5,170 -103 -2%

West Bengal 7,647 7,585 -62 -1%

Andhra Pradesh 9,232 9,190 -43 -0%

Bihar 5,824 5,802 -22 -0%

Haryana 8,141 8,112 -30 -0%


Maharashtra 27,987 28,009 22 0%

Madhya Pradesh 10,432 10,486 54 1%

Tamil Nadu 16,574 16,681 106 1%

Karnataka 14,207 14,300 93 1%

Delhi 4,432 4,473 41 1%

Telangana 9,165 9,274 110 1%

Puducherry 9 9 0 1%

Punjab 7,006 7,107 101 1%



Uttar Pradesh 18,416 18,721 305 2%

Jharkhand 3,292 3,350 58 2%


Goa 586 598 12 2%

Jammu & Kashmir 1,386 1,412 26 2%

Sikkim 115 118 3 2%

Nagaland 89 92 2 2%

Manipur 172 177 4 3%

Uttarakhand 1,233 1,268 35 3%

Mizoram 77 80 3 3%

Daman & Diu 2 2 0 5%

Rajasthan 12,753 13,451 698 5%

Andaman & Nicobar

Islands

82 87 5 6%


respectively.


Central taxes 2,379 2,409 30 1%

State taxes 4,256 4,286 30 1%



Assam 191 181 -9 -5%

Gujarat 236 231 -5 -2%

Kerala 155 153 -3 -2%

Orissa 24 24 -0 -2%

Haryana 65 65 -1 -1%

West Bengal 242 239 -3 -1%

Tamil Nadu 274 271 -3 -1%



Bihar 45 45 -0 -0%


Sikkim - - - 0%

Delhi 946 948 2 0%


Karnataka 412 416 4 1%


46


Uttar Pradesh 182 187 4 2%

Jammu & Kashmir 75 76 2 3%




Rajasthan 148 152 5 3%

Manipur 7 8 0 3%

Puducherry 0 0 0 3%

Mizoram 2 2 0 4%

Telangana 117 122 4 4%

Goa 58 61 2 4%

Tripura 9 9 0 4%

Punjab 56 59 3 5%

Andaman & Nicobar

Islands

16 17 1 7%

Jharkhand 11 12 2 15%


Nagaland 0 0 0 49%


Central taxes1 19,462 19,651 190 1%

State taxes1 6,350 6,540 190 3%

Tripura 0 0 -0 -11%


Gujarat 1,247 1,152 -95 -8%

Maharashtra 2,932 2,773 -159 -5%

Assam 1,057 1,010 -47 -4%

Tamil Nadu 72 69 -3 -4%

Andaman & Nicobar

Islands

- - - 0%

Bihar - - - 0%

Chandigarh - - - 0%




Delhi - - - 0%

Goa - - - 0%

Haryana - - - 0%



Jharkhand - - - 0%

Karnataka - - - 0%

Kerala - - - 0%


Manipur - - - 0%

Meghalaya - - - 0%

Mizoram - - - 0%

Nagaland - - - 0%

Orissa - - - 0%

Puducherry - - - 0%

Punjab - - - 0%

Sikkim - - - 0%

Telangana - - - 0%





47


Rajasthan 875 1,355 480 55%


respectively.


Central taxes 1,53,596 1,53,758 162 0%

State taxes 1,14,184 1,14,345 162 0%


Assam 1,619 1,507 -113 -7%

Kerala 4,124 4,038 -86 -2%

Orissa 3,837 3,760 -77 -2%

Gujarat 8,939 8,772 -166 -2%

West Bengal 5,253 5,205 -47 -1%

Haryana 5,949 5,902 -46 -1%

Delhi 1,497 1,491 -7 -0%

Bihar 3,855 3,839 16 -0%

Andhra Pradesh 5,926 5,903 -23 -0%




Maharashtra 12,866 12,928 62 0%

Madhya Pradesh 6,240 6,279 38 1%

Karnataka 8,812 8,868 56 1%

Tamil Nadu 9,747 9,821 74 1%

Uttar Pradesh 10,014 10,114 100 1%

Telangana 6,109 6,186 76 1%


Puducherry 3 3 0 2%

Rajasthan 7,879 8,007 128 2%

Goa 298 303 5 2%


Punjab 4,142 4,215 73 2%

Jharkhand 2,309 2,350 42 2%




Sikkim 74 76 2 3%

Nagaland 42 43 1 3%

Manipur 77 80 3 3%

Tripura 70 73 2 3%

Mizoram 42 44 2 4%

Andaman & Nicobar

Islands

58 61 4 6%



Central taxes1 858 1,021 163 19%

State taxes1 6,841 7,004 163 2%


Kerala 69 39 -30 -43%

Tripura 76 61 -15 -20%

Assam 239 209 30 -13%



Tamil Nadu 113 105 -8 -7%

Gujarat 3,202 3,148 -54 -2%


48

Andaman & Nicobar

Islands

- - - 0%


Bihar - - - 0%


Goa - - - 0%


Karnataka - - - 0%

Manipur - - - 0%

Meghalaya - - - 0%

Mizoram - - - 0%

Nagaland - - - 0%

Puducherry - - - 0%

Sikkim - - - 0%

Madhya Pradesh 154 155 2 1%



Orissa 0 0 0 9%


Uttar Pradesh 1,437 1,598 161 11%

Punjab 3 3 0 12%


Rajasthan 205 245 39 19%

Haryana 122 153 31 25%


Telangana 1 1 0 43%

Delhi 63 113 50 79%



respectively.


Central taxes 71,345 71,430 85 0%

State taxes 66,045 66,130 85 0%


Assam 991 948 -43 -4%

Gujarat 3,271 3,211 -61 -2%

Orissa 1,412 1,387 -25 -2%

Kerala 3,563 3,508 -55 -2%

Haryana 2,005 1,991 -14 -1%

West Bengal 2,152 2,140 -12 -1%

Andhra Pradesh 2,779 2,766 -13 -0%

Bihar 1,924 1,918 -6 -0%

Delhi 1,926 1,922 -3 -0%




Maharashtra 10,628 10,654 27 0%


Uttar Pradesh 6,783 6,822 39 1%

Karnataka 4,983 5,016 33 1%

Tamil Nadu 6,369 6,416 47 1%

Punjab 2,805 2,830 24 1%

Telangana 2,937 2,965 29 1%

Puducherry 6 6 0 1%

Rajasthan 3,647 3,693 46 1%





49



Jharkhand 973 987 14 1%

Sikkim 41 42 1 2%

Nagaland 47 48 1 2%

Manipur 87 89 2 2%

Goa 230 234 5 2%

Tripura 67 69 2 2%

Mizoram 33 34 1 2%

Andaman & Nicobar

Islands

8 9 1 7%

• Impact on price of Diesel at suggested RNR Taxes Current Post Inclusion


Base Price 37.15 37.15 37.15 37.15

Freight etc 0.32 0.32 0.32 0.32

Add: Excise Duty 15.83 15.83 15.83 15.83


(Average)

2.49 2.49 2.49 2.49


Add: VAT at ~ (17% to 35%) 9.64 13.39 19.64 9.64

Add: CGST at 1% - - - 0.56

Add: SGST at 1% - - - 0.56

Add: Central Cess (N.A.) - - - -

Add: State Cess (N.A.) - - - -


Increase/(Decrease) 2% -4% -12%

Note:



3. VAT rate applicable for Delhi is considered for computing post inclusion price.


• Impact on price of Petrol at suggested RNR Taxes Current Post Inclusion


Base Price 32.81 32.81 32.81 32.81

Freight etc 0.35 0.35 0.35 0.35

Add: Excise Duty 19.98 19.98 19.98 19.98


(Average)

3.55 3.55 3.55 3.55


Add: VAT at ~ (27% to 39%) 15.30 19.27 21.86 15.30

Add: CGST at 1% - - - 0.57

Add: SGST at 1% - - - 0.57

Add: Central Cess (N.A.) - - - -

Add: State Cess (N.A.) - - - -


Increase/(Decrease) 2% -4% -7%

Note:



3. VAT rate applicable for Delhi is considered for computing post inclusion price.



50

16. Computation of taxes under option 3 i.e. Elimination of entire tax stranding – All products

brought In (INR crores)


• Tax contribution to the Central and State Government at suggested rate Product Name

Central taxes


ATF 18,874 9.00% 1,699 8.00% 1,510 3,209

Crude 1,02,856 6.00% 6,171 3.25% 3,343 9,514

Diesel 3,29,110 20.00% 65,822 20.00% 65,822 1,31,644

Natural gas 68,064 2.50% 1,702 0.00% - 1,702

Petrol 1,23,972 20.00% 24,794 35.00% 43,390 68,184

Total 6,42,876 1,00,188 1,14,065 2,14,253

Product Name

State taxes


ATF 18,874 9.00% 1,699 8.00% 1,510 3,209

Crude 1,02,856 6.00% 6,171 3.25% 3,343 9,514

Diesel 3,29,110 20.00% 65,822 20.00% 65,822 1,31,644

Natural gas 68,064 2.50% 1,702 0.00% - 1,702

Petrol 1,23,972 20.00% 24,794 35.00% 43,390 68,184

Total 6,42,876 1,00,188 1,14,065 2,14,253


51

• Current vs inclusion in GST at suggested rate

Product Name





ATF 2,379 3,209 830 4,256 3,209 -1,048

Crude 19,462 9,514 -9,947 6,350 9,514 3,164

Diesel 1,53,596 1,31,644 -21,952 1,14,184 1,31,644 17,460

Natural gas 858 1,702 844 6,841 1,702 -5,139

Petrol 71,345 68,184 -3,161 66,045 68,184 2,139

Total 2,47,639 2,14,253 -33,386 1,97,676 2,14,253 16,577

• State-wise tax contribution to the Central and State Government at suggested rate (All


Central taxes1 2,47,639 2,14,253 -33,386 -13%

State taxes1 1,97,676 2,14,253 16,577 8%



Daman & Diu 2 1 -1 -52%

Andhra Pradesh 9,232 7,875 -1,357 -15%

Gujarat 16,895 15,443 -1,452 -9%

Assam 4,097 3,791 -306 -7%

Tamil Nadu 16,574 16,633 58 0%

Kerala 7,911 7,941 30 0%

Telangana 9,165 9,240 75 1%

Maharashtra 27,987 28,332 345 1%

Madhya Pradesh 10,432 10,992 560 5%

Bihar 5,824 6,137 313 5%

West Bengal 7,647 8,138 491 6%

Delhi 4,432 4,753 321 7%

Chhattisgarh 3,889 4,185 296 8%

Orissa 5,273 5,795 522 10%

Uttar Pradesh 18,416 21,294 2,878 16%

Jharkhand 3,292 3,830 538 16%

Punjab 7,006 8,387 1,380 20%

Rajasthan 12,753 15,344 2,591 20%

Karnataka 14,207 18,069 3,862 27%

Jammu & Kashmir 1,386 1,840 454 33%


Sikkim 115 159 44 38%


52

Haryana 8,141 11,240 3,099 38%

Tripura 222 318 95 43%

Uttarakhand 1,233 1,898 665 54%


Manipur 172 274 102 59%


Nagaland 89 145 56 62%

Goa 586 953 367 63%


Mizoram 77 156 78 101%

Andaman & Nicobar

Islands

82 308 227 277%


respectively.

• State-wise tax contribution to the Central and State Government at suggested rate (ATF) State Current tax Estimated tax Rise/(fall) Rise/(fall) %

Central taxes 2,379 3,209 830 35%

State taxes 4,256 3,209 -1,048 -25%



Haryana 65 25 -40 -61%

Delhi 946 445 -501 -53%

Kerala 155 78 -77 -50%

Bihar 45 23 -22 -49%

Tamil Nadu 274 140 -134 -49%

Karnataka 412 218 -194 -47%

West Bengal 242 137 -105 -44%



Assam 191 114 -77 -40%


Gujarat 236 169 -67 -29%


Daman & Diu 1 1 -0 -25%

Manipur 7 6 -2 -24%

Mizoram 2 1 -0 -24%


Rajasthan 148 122 -26 -17%


Tripura 9 8 -1 -7%


Sikkim - - - 0%

Puducherry 0 0 0 3%

Goa 58 63 5 8%


Punjab 56 73 16 29%

Telangana 117 168 50 43%

Andaman & Nicobar

Islands

16 24 8 50%

Orissa 24 63 38 159%

Jharkhand 11 39 28 266%




• State-wise tax contribution to the Central and State Government at suggested rate (Crude) State Current tax Estimated tax Rise/(fall) Rise/(fall) %

Central taxes1 19,462 9,514 -9,947 -51%

State taxes1 6,350 9,514 3,164 50%


53

Andaman & Nicobar

Islands

- - - 0%

Bihar - - - 0%

Chandigarh - - - 0%




Delhi - - - 0%

Goa - - - 0%

Haryana - - - 0%



Jharkhand - - - 0%

Karnataka - - - 0%

Kerala - - - 0%


Manipur - - - 0%

Meghalaya - - - 0%

Mizoram - - - 0%

Nagaland - - - 0%

Orissa - - - 0%

Puducherry - - - 0%

Punjab - - - 0%

Sikkim - - - 0%

Telangana - - - 0%




Tamil Nadu 72 77 5 7%

Assam 1,057 1,134 78 7%

Gujarat 1,247 1,436 189 15%

Maharashtra 2,932 3,848 917 31%


Tripura 0 1 0 155%


Rajasthan 875 2,677 1,802 206%


respectively.

• State-wise tax contribution to the Central and State Government at suggested rate (Diesel) State Current tax Estimated tax Rise/(fall) Rise/(fall) %

Central taxes 1,53,596 1,31,644 -21,952 -14%

State taxes 1,14,184 1,31,644 17,460 15%


Andhra Pradesh 5,926 5,020 -905 -15%

Assam 1,619 1,547 -73 -4%



Telangana 6,109 6,159 50 1%

Gujarat 8,939 9,015 76 1%


Orissa 3,837 3,893 56 1%

Kerala 4,124 4,185 61 1%

Tamil Nadu 9,747 10,103 356 4%

Bihar 3,855 4,053 198 5%

Rajasthan 7,879 8,567 688 9%

West Bengal 5,253 5,718 465 9%

Madhya Pradesh 6,240 6,882 641 10%

Jharkhand 2,309 2,631 322 14%

Maharashtra 12,866 14,673 1,808 14%

Delhi 1,497 2,012 515 34%


54

Karnataka 8,812 12,104 3,292 37%

Uttar Pradesh 10,014 13,874 3,860 39%

Goa 298 420 122 41%

Punjab 4,142 5,864 1,723 42%

Haryana 5,949 8,582 2,633 44%

Sikkim 74 112 38 51%

Jammu & Kashmir 726 1,104 377 52%


Uttarakhand 672 1,152 480 71%


Nagaland 42 76 34 80%

Manipur 77 146 68 88%

Tripura 70 155 85 120%


Mizoram 42 96 54 128%


Andaman & Nicobar

Islands

58 238 180 311%

• State-wise tax contribution to the Central and State Government at suggested rate (Natural


Central taxes1 858 1,702 844 98%

State taxes1 6,841 1,702 -5,139 -75%


Assam 239 34 -206 -86%

Daman & Diu 1 0 -1 -85%


Orissa 0 0 -0 -83%



Uttar Pradesh 1,437 270 -1,166 -81%

Punjab 3 1 -3 -80%

Gujarat 3,202 649 -2,553 -80%


Tripura 76 26 -49 -65%

Tamil Nadu 113 39 -73 -65%

Maharashtra 753 305 -448 -60%

Haryana 122 53 -69 -57%

Rajasthan 205 91 -115 -56%

Kerala 69 36 -34 -48%


West Bengal 0 0 -0 -34%

Telangana 1 1 -0 -18%

Andaman & Nicobar

Islands

- - - 0%


Bihar - - - 0%


Goa - - - 0%


Karnataka - - - 0%

Manipur - - - 0%

Meghalaya - - - 0%

Mizoram - - - 0%

Nagaland - - - 0%

Puducherry - - - 0%

Sikkim - - - 0%


55

Delhi 63 89 26 41%



respectively.

• State-wise tax contribution to the Central and State Government at suggested rate (Petrol) State Current tax Estimated tax Rise/(fall) Rise/(fall) %

Central taxes 71,345 68,184 -3,161 -4%

State taxes 66,045 68,184 2,139 3%


Maharashtra 10,628 8,601 -2,026 -19%

Andhra Pradesh 2,779 2,400 -378 -14%

Punjab 2,805 2,449 -356 -13%

Assam 991 963 -28 -3%

Tamil Nadu 6,369 6,273 -96 -2%

Telangana 2,937 2,912 -25 -1%




Kerala 3,563 3,642 80 2%

Uttar Pradesh 6,783 6,992 209 3%

West Bengal 2,152 2,283 131 6%

Rajasthan 3,647 3,888 241 7%

Bihar 1,924 2,061 137 7%

Sikkim 41 47 6 14%

Delhi 1,926 2,207 281 15%

Karnataka 4,983 5,747 764 15%

Jammu & Kashmir 585 694 109 19%

Jharkhand 973 1,160 188 19%

Chhattisgarh 1,141 1,387 246 22%

Gujarat 3,271 4,175 903 28%

Haryana 2,005 2,580 575 29%

Orissa 1,412 1,840 428 30%



Manipur 87 123 35 40%

Nagaland 47 67 20 42%




Mizoram 33 59 25 75%

Tripura 67 127 60 90%

Goa 230 470 240 105%

Andaman & Nicobar

Islands

8 47 39 474%

• Impact on price of Diesel at suggested rate Taxes Current Post Inclusion


Base Price 37.15 37.15 37.15 37.15

Freight etc 0.32 0.32 0.32 0.32

Add: Excise Duty 15.83 15.83 15.83 -


(Average)

2.49 2.49 2.49 2.49


Add: VAT at ~ (17% to 35%) 9.64 13.39 19.64 -

Add: CGST at 20% - - - 7.99

Add: SGST at 20 % - - - 7.99



56




Note:




• Impact on price of Petrol at suggested rate Taxes Current Post Inclusion


Base Price 32.81 32.81 32.81 32.81

Freight etc 0.35 0.35 0.35 0.35

Add: Excise Duty 19.98 19.98 19.98 -


(Average)

3.55 3.55 3.55 3.55


Add: VAT at ~ (27% to 39%) 15.30 19.27 21.86 -

Add: CGST at 20% - - - 7.34

Add: SGST at 20% - - - 7.34





Note:




17. Computation of taxes under option 4 if only natural gas brought in at 12% ( i.e. 2.5% CGST +

2.5% SGST + 3.5% Central Cess + 3.5% State Cess) (INR Crores)

Taxes Current Estimated Increase/(Decrease)

Central excise - - -

CVD & SAD - - -

CGST credit reversals 858 - -858

CGST - 1,702 1,702

Central Cess - 2,382 2,382


57

Central Revenue 858 4,084 3,226

VAT 7,415 - -7,415

CST 1,117 - -1,117

Specific reversals – VAT -2,549 - 2,549

SGST credit reversals 858 -858

SGST - 1,702 1,702

State Cess - 2,382 2,382

State Revenue 6,841 4,084 -2,757

• State-wise tax contribution to the Central and State Government from natural gas State Current tax Estimated tax Rise/(fall) Rise/(fall) %

Central taxes1 858 4,084 3,226 376%

State taxes1 6,841 4,084 -2,757 -40%


Assam 239 80 -159 -66%

Daman & Diu 1 0 -1 -64%


Orissa 0 0 -0 -60%



Uttar Pradesh 1,437 649 -788 -55%

Punjab 3 2 -2 -52%

Gujarat 3,202 1,557 -1,645 -51%


Tripura 76 63 -12 -17%

Tamil Nadu 113 95 -18 -16%


Andaman & Nicobar

Islands

- - - 0%


Bihar - - - 0%


Goa - - - 0%


Karnataka - - - 0%

Manipur - - - 0%

Meghalaya - - - 0%

Mizoram - - - 0%

Nagaland - - - 0%

Puducherry - - - 0%

Sikkim - - - 0%

Haryana 122 127 5 4%

Rajasthan 205 217 12 6%

Kerala 69 86 17 24%



Telangana 1 2 1 98%

Delhi 63 214 151 239%



respectively.


58

18. Computation of taxes under option 4 if only natural gas brought in at 5% ( i.e. 2.5% CGST +

2.5% SGST) (INR Crores)


Central excise - - -

CVD & SAD - - -


CGST - 1,702 1,702

Central Cess - - -

Central Revenue 858 1,702 844

VAT 7,415 - -7,415

CST 1,117 - -1,117



SGST - 1,702 1,702

State Cess - - -

State Revenue 6,841 1,702 -5,139

• State-wise tax contribution to the Central and State Government from natural gas State Current tax Estimated tax Rise/(fall) Rise/(fall) %

Central taxes1 858 1,702 844 98%

State taxes1 6,841 1,702 -5,139 -75%


Assam 239 34 -206 -86%

Daman & Diu 1 0 -1 -85%


Orissa 0 0 -0 -83%



Uttar Pradesh 1,437 270 -1,166 -81%

Punjab 3 1 -3 -80%

Gujarat 3,202 649 -2,553 -80%


Tripura 76 26 -49 -65%

Tamil Nadu 113 39 -73 -65%

Maharashtra 753 305 -448 -60%

Haryana 122 53 -69 -57%

Rajasthan 205 91 -115 -56%

Kerala 69 36 -34 -48%



59

West Bengal 0 0 -0 -34%

Telangana 1 1 -0 -18%

Andaman & Nicobar

Islands

- - - 0%


Bihar - - - 0%


Goa - - - 0%


Karnataka - - - 0%

Manipur - - - 0%

Meghalaya - - - 0%

Mizoram - - - 0%

Nagaland - - - 0%

Puducherry - - - 0%

Sikkim - - - 0%

Delhi 63 89 26 41%



respectively.

19. Computation of taxes under option 4 if only ATF and ntural gas brought in GST with ATF taxed

at 36% (9% CGST + 9% SGST + 9% Central Cess + 9% State Cess) and natural gas taxed at

12% (2.5% CGST + 2.5% SGST + 3.5% Central Cess + 3.5% State Cess) (INR Crores)


Central excise 2,246 - -2,246

CVD & SAD - - -


CGST - 3,400 3,400

Central Cess 4,081 4,081

Central Revenue 3,236 7,481 4,245

VAT 11,824 - -11,824

CST 1,256 - -1,256



SGST - 3,400 3,400

State Cess - 4,081 4,081

State Revenue 11,097 7,481 -3,616


60

• State-wise tax contribution to the Central and State Government from ATF and natural gas State Current tax Estimated tax Rise/(fall) Rise/(fall) %

Central taxes1 3,236 7,481 4,245 131%

State taxes1 11,097 7,481 -3,616 -33%




Assam 430 201 -229 -53%

Uttar Pradesh 1,619 816 -803 -50%

Gujarat 3,438 1,736 -1,702 -50%


Bihar 45 24 -21 -46%


Karnataka 412 231 -181 -44%

West Bengal 242 145 -97 -40%

Daman & Diu 2 1 -1 -40%


Tamil Nadu 387 243 -144 -37%


Delhi 1,009 684 -325 -32%

Kerala 225 169 -56 -25%

Manipur 7 6 -1 -20%

Mizoram 2 1 -0 -20%


Haryana 188 154 -34 -18%

Tripura 85 72 -13 -15%

Rajasthan 353 347 -6 -2%

Sikkim - - - 0%

Maharashtra 1,562 1,689 127 8%

Puducherry 0 0 0 9%

Goa 58 67 8 14%

Punjab 59 78 19 32%

Telangana 118 179 61 51%

Andaman & Nicobar

Islands

16 25 9 59%


Orissa 24 66 42 174%

Jharkhand 11 41 31 284%




respectively.


61

20. Computation of taxes under option 4 if only ATF and ntural gas brought in GST with ATF taxed

at 34% (9% CGST + 9% SGST + 8% Central Cess + 8% State Cess) and natural gas taxed at

5% (2.5% CGST + 2.5% SGST) (INR Crores)


Central excise 2,246 - -2,246

CVD & SAD - - -


CGST - 3,400 3,400

Central Cess 1,510 1,510

Central Revenue 3,236 4,910 1,674

VAT 11,824 - -11,824

CST 1,256 - -1,256



SGST - 3,400 3,400

State Cess - 1,510 1,510

State Revenue 11,097 4,910 -6,187

• State-wise tax contribution to the Central and State Government from ATF and natural gas State Current tax Estimated tax Rise/(fall) Rise/(fall) %

Central taxes1 3,236 4,910 1,674 52%

State taxes1 11,097 4,910 -6,187 -56%




Gujarat 3,438 817 -2,621 -76%

Uttar Pradesh 1,619 428 -1,191 -74%


Assam 430 147 -283 -66%


Tripura 85 35 -50 -59%

Haryana 188 78 -109 -58%

Tamil Nadu 387 179 -207 -54%

Daman & Diu 2 1 -1 -52%

Kerala 225 114 -111 -49%

Bihar 45 23 -22 -49%

Delhi 1,009 534 -475 -47%

Karnataka 412 218 -194 -47%


62

West Bengal 242 137 -105 -44%



Rajasthan 353 213 -140 -40%


Manipur 7 6 -2 -24%

Mizoram 2 1 -0 -24%

Maharashtra 1,562 1,209 -353 -23%

Sikkim - - - 0%

Puducherry 0 0 0 3%

Goa 58 63 5 8%

Punjab 59 73 14 23%


Telangana 118 168 50 42%

Andaman & Nicobar

Islands

16 24 8 50%

Orissa 24 63 38 159%

Jharkhand 11 39 28 263%




respectively.

This study was conducted by FIPI with Deloitte as a knowledge partner and is completly based on data provided by industry.© Federation of Indian Petroleum Industry

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