Compliance by petrol pumps under GST will raise costs: Industry

Despite petrol and petroleum products, including diesel and natural gas, being exempt under the GST, filling stations will come under the tax ambit as they also sell lubricants and distilled water, which are not exempt, leading to an increase in compliance costs, industry stakeholders and experts have said.India currently has over 45,000 petrol pumps.

“All petrol pumps are selling lubricants and it is under GST. Many of the petrol pumps also sell distilled water and other merchandise due to which each and every petrol pump will come under GST,” Punjab Petroleum Dealers Association President Sandeep Sehgal told IANS.

Experts are in fact of the opinion that this will lead to duality of compliances as the petrol pumps will have to file two returns — one for the petroleum products and the other for non-exempt products on which Goods and Services Tax (GST) will be applicable, like lubricants.

“Petrol pumps also sell engine oils, cold drinks and water bottles on which they will have to pay GST and on petrol/diesel VAT (Value Added Tax) will be payable to the states. This will lead to duality and will lead to increase in the compliance cost,” GST expert Pritam Mahure told IANS.