Impact of GST on Five Petroleum products

What will be the Impact of GST on Five Petroleum products if it comes under the purview of GST?

1.Under the current scenario, Five Petroleum products [Petroleum Crude, High Speed Diesel, Aviation Turbine Fuel, Motor Spirit (Petrol), Natural Gas] are kept outside Goods and Services Tax.

2. On sale of above products, State Value Added Tax is charged and Central Sales Tax in case of Inter State Sale and on manufacture of above products Central Excise Duty is chargeable as per Entry No. 84 of Article 246 read with 7th schedule of Constitution.

3.The main reason these products kept outside GST because they are main source of Revenue for State and Central Government and according to recent prices of petrol, around 51% Central Excise Duty is charged on Basic Cost on Fuel after Refining that goes to Central Government and around 27% Value Added Tax is charged on Fuel Cost before charging Value Added Tax which goes to State Government and both governments are afraid that if above products come under GST, then there revenue from these products goes down.

4.(REASON FOR INCREASE IN PETROLEUM PRODUCTS) 
There is double taxation also under the existing law, on sale the VAT is charged on combined value of price plus Central Excise Duty the Input Tax Credit of which is not available to a dealer which also leads to increase in prices of above products.

5.(REASON FOR INCREASE IN PETROLEUM PRODUCTS)

One of the reasons for sharp increase in price of mainly petrol, diesel is that mainly the above products are sold by Oil Marketing Companies like HPCL, IOCL, BPCL mainly they are sold Inter State on which Central Sales Tax is charged the credit of which is not available to the buyer and that becomes part of cost of buyer.

6. (IMPACT OF GST ON PETROLEUM PRODUCTS) 
When above five petroleum products comes under GST, then there might be decrease in price of products because in existing law, around 86 % combined tax (Central Excise Duty and Value Added Tax) is charged and under GST if petroleum products come under 28% bracket then also prices of petroleum products sharply decreases.

7. (IMPACT OF GST ON PETROLEUM PRODUCTS)
The problem specified in point 5 might be solved to the extent if these products come under GST because on Inter-State Supplies, IGST is charged under GST the credit of which is available in making payment of CGST, SGST, UTGST, IGST which leads to decrease in price.