Question

Which one of the following is not covered under GST in India?

• A. Cosmetics
• B. Medical Grade Oxygen
• C. Jewellery
• D. Petrol

Hint:

Remember, petrol and other petroleum products are excluded from GST and are instead subject to other forms of taxation.

Answer 1

The Correct Option is D

Petrol is not covered under the Goods and Services Tax (GST) in India. While most goods and services fall under GST, petroleum products like petrol are taxed separately by the states.

Answer 2

Goods and Services Tax (GST) in India is a comprehensive indirect tax that has subsumed many central and state taxes. It was implemented on July 1, 2017 to streamline the taxation structure and create a unified national market.

While GST covers a wide range of goods and services, certain items are kept outside its purview, either temporarily or permanently, based on policy decisions and administrative considerations.

Petrol and GST:
As of now, petroleum products like petrol, diesel, crude oil, natural gas, and aviation turbine fuel are not covered under GST. These products continue to be taxed separately by the central and state governments through excise duty and VAT (Value Added Tax).

This exclusion is mainly due to the significant revenue petroleum products generate for both central and state governments. Including them under GST would require a consensus among the GST Council members, which has not yet been reached.

Other Goods Covered Under GST:
Most goods and services including electronics, textiles, packaged foods, restaurants, and entertainment are within the GST framework, with varying tax slabs such as 5%, 12%, 18%, and 28%.

Conclusion:
The correct answer is Petrol, as it is not covered under the GST regime in India and continues to be taxed separately by the central and state governments.