Petrol and diesel are not covered under the GST (Goods and Services Tax) regime. These fuels continue to be taxed through traditional methods such as VAT (Value Added Tax), central excise duty, and central sales tax.In India, GST is levied on motor vehicles, irrespective of the type of fuel used. In that regard, GST applies to all diesel vehicles, such as diesel cars, buses and trucks. The applicability of GST on diesel vehicles depends on various factors based on the vehicle’s classification and purpose.
HSN Code and GST Rate on Diesel Vehicles
| HSN Code | Description | GST Rate |
| 8408 | Compression-ignition internal combustion piston engines (diesel or semi-diesel engines) | 28% |
| 8409 | Diesel engine parts | 28% |
| 8413 | Fuel, lubricating or cooling medium pumps for internal combustion piston engines | 28% |
| 8702 | Motor vehicles designed to transport 10 or more individuals | 28% |
| 8703 | Motor cars and vehicles primarily intended to transport people (excluding those under heading 8702), such as station wagons and racing cars, but not including cars designed for individuals with physical disabilities | 28% |
| 8703 | Diesel vehicles with an engine capacity of up to 1500 cc, intended for use by individuals with orthopedic disabilities (subject to certification from a Deputy Secretary or higher in the Department of Heavy Industries, Government of India) | 18% |
| 8704 | Goods transport vehicles | 28% |
GST on Fuel and Petroleum Products
Particulars | HSN code | GST rate |
Petroleum jelly | 27129010, 90 | 18% |
Petroleum Gases in gaseous state | 27112100 | 18% |
Petroleum Oils And Oils Obtained From Bituminous Minerals, Other Than Crude, with the weight of 70% or more of Petroleum Oils | 27109100 | 18% |
Petroleum Gases in liquified form | 27111900 | 5% |
Liquified petroleum gas or LPG supplied to non-domestic, exempted category (NDEC) customers by companies such as IOC, HP or BP | 27111200 | 5% |
Raw petroleum coke for node making used in the Aluminium Industry as per Standard Is 17049 | 27131110 | 18% |
FAQs
Q1. Are diesel fuel and diesel engines taxed at the same rate?
No, diesel fuel and diesel engines are not taxed at the same rate. Diesel fuel is outside the purview of GST, whereas GST is levied at 28% on diesel engines.
Q2. How is the GST calculated on diesel cars?
Lorem ipsum dolor sit amet, consectetur adipisThe GST on diesel cars is calculated based on the applicable GST rate, which is currently 28% for diesel engine vehicles, with a few exceptions. The final price would include this tax and any additional cess or state levies.cing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
Q3. Is ITC Available on GST on Diesel Vehicles?
- Four-wheeler motor cars
- Three-wheelers or auto rickshaws
- Two-wheeler motorbikes or cycles
- Buses or Tempo Travellers (TT) that have up to 13 seats, including the driver
- Any other vehicle used on the road
Except where the purchase of the passenger transportation vehicle is for the purpose of conducting the following businesses-
- Passenger transportation services, cabs, or bus rental or lease service
- Driving school
- Automobile retail shops, showrooms, or manufacturing establishments
Q4. Why is petrol price high in India?
