Despite petrol and petroleum products, together with diesel and natural fuel, being exempt beneath the GST, filling stations will come beneath the tax ambit as additionally they sell lubricants and distilled water, which are not exempt, resulting in an increase in compliance costs, business stakeholders and specialists have said.

India presently has over forty five,000 petrol pumps.

ll petrol pumps are selling lubricants and it is under GST. Lots of the petrol pumps additionally sell distilled water and other merchandise attributable to which each petrol pump will come underneath GST,Punjab Petroleum Dealers Affiliation President Sandeep Sehgal told IANS.

Specialists are the truth is of the opinion that it 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 merchandise on which Items and Providers Tax (GST) might be applicable, like lubricants.

etrol pumps additionally sell engine oils, chilly drinks and water bottles on which they must pay GST and on petrol/diesel VAT (Worth Added Tax) will probably be payable to the states. This will result in duality and will lead to increase within the compliance cost,GST expert Pritam Mahure instructed IANS.

lso, small petrol pump house owners will probably be challenged as they do not have refined software program to keep up business records at such a minute degree,Mahure added.

Rahul Devidasrao Jadhav, who owns an Indian Oil filling station in Solapur, Maharashtra, mentioned that it will be extra work for his accountant, leading to a rise in compliance costs.

own a highway petrol pump at Solarpur. We promote distilled water and lubricants. It will be more work for our accountant filing two separate returns for exempt and non-exempt merchandise. Twin tax, i.e., VAT on petrol/diesel and GST on oil and other products, will result in double compliance for us,Jadhav told IANS.

overnment ought to try to address these challenges for us,Jadhav added.

or clean transition to GST, the government should goal at reducing compliance value for enterprise. Then only, GST will actually deliver ease of doing enterprise,Jigar Doshi, Associate, SKP Business Consulting, and a GST expert, instructed IANS.

lso, petroleum firms ought to take measures to ensure that they guide petrol pump owners to ensure easy transition. The government should problem applicable guidelines to assist the small vendors,Doshi added.

The Punjab Petroleum Sellers Association, which has 3,268 petrol pumps within the state as members, has been asking for petroleum products to be included beneath GST as the VAT rates in the state are greater than in Haryana and Chandigarh.

e would have to file value-added tax and one other GST for non-exempt products. We are demanding petrol products to be brought beneath GST. Petrol is cheaper in Chandigarh and Haryana because of upper VAT in Punjab, so we lose out on enterprise in Punjab. Petrol sales won’t grow in Punjab,Sehgal mentioned.

he authorities ought to levy one fee for petroleum products,he urged.

Petrol and petroleum products have been saved zero-rated beneath the GST regime. Since 30-forty per cent of statesrevenue is derived from potable alcohol and petroleum products, the GST Council — which consists of statesfinance ministers — most well-liked to keep these out of GST as of now.