Facts checked on 9 November 2026. Published by MDG Services on 9 November 2026.
A pump sells two kinds of things. Petrol and diesel sit outside GST; lubricants, accessories and services do not. This is the split as on 9 November 2026, and general information, not tax advice.
Is there GST on petrol and diesel?
Not today. Five petroleum products, which are petrol, diesel, crude oil, natural gas and aviation turbine fuel, were kept out of GST for the time being, and the GST Council decides the date they come in CBIC GST FAQ, 3rd edition, 15 Dec 2018. The CGST Act says the central tax on them is levied from a date notified on the Council's recommendation CGST Act 2017, section 9(2). The rate notification of 17 September 2025 still calls them "not in GST" Notification 9/2025-IGST (Rate), Schedule II. We found no notified date.
So the price of petrol and diesel carries VAT and central excise, not GST CBIC GST FAQ, 3rd edition, 15 Dec 2018. VAT is a state tax, and the Petroleum Minister said in Lok Sabha that some State Governments also reduced it PIB, Petroleum Minister, 21 Aug 2025.
What does a pump's other business pay?
| Sale | Tax treatment |
|---|---|
| Petrol, diesel | Outside GST; VAT and central excise continue CBIC GST FAQ, 3rd edition, 15 Dec 2018 |
| Lubricating preparations (heading 3403) | In the 18 per cent schedule Notification 9/2025-IGST (Rate), Schedule II |
| Accessories, store goods, services | Each item has its own rate; look it up on CBIC's rate finder |
When must a pump register?
A supplier must register if turnover in a year goes above Rs 20 lakh, or Rs 10 lakh in special category states CGST Act 2017, section 22(1). For a supplier of goods only, the Government may raise the limit to as much as Rs 40 lakh CGST Act 2017, section 22(1). A person supplying only goods that are not taxable or are wholly exempt need not register CGST Act 2017, section 23(1)(a). Which of your sales count, and which limit applies, is for a chartered accountant.
How does input tax credit work for a mixed business?
Where goods or services are used partly for taxable and partly for exempt supplies, credit is limited to the taxable part CGST Act 2017, section 17(2). "Exempt supply" includes a non-taxable supply, which is one not leviable to GST CGST Act 2017, section 2(47) and 2(78). Whether petrol sold today counts as a non-taxable supply under these definitions, and how credit on a cost shared by petrol and lubricant sales is split, is for a chartered accountant.
Where this comes from
- CGST Act 2017, CBIC tax information site: sections 2, 9, 17, 22 and 23.
- CBIC FAQ on GST, 3rd edition: petroleum products kept out of GST.
- Notification 9/2025-Integrated Tax (Rate): rates, as hosted by CBIC.
- Petroleum Minister's reply, PIB, 21 August 2025: state VAT cuts.
Questions people ask
01Does petrol have GST?
No, not today. Petrol, diesel, crude oil, natural gas and aviation turbine fuel have been kept out of GST for the time being, until the GST Council decides a date CBIC GST FAQ, 3rd edition, 15 Dec 2018.
02Is GST applicable on a petrol pump?
Not on petrol and diesel. Other goods a pump sells, such as lubricants, are taxed at the rate set for each item Notification 9/2025-IGST (Rate), Schedule II.
03Does a petrol pump need GST registration?
A supplier must register if turnover in a year goes above the limit in section 22, but a person supplying only goods that are not taxable or are wholly exempt need not register CGST Act 2017, section 22(1) CGST Act 2017, section 23(1)(a). Ask a chartered accountant which sales count.
04What is the HSN code of petrol?
Heading 2710 covers petroleum oils, and the rate notification says petrol, diesel and ATF in it are not in GST Notification 9/2025-IGST (Rate), Schedule II. For an 8-digit code, use CBIC's tax information site.
Related pages
About Dealer Kavach (advertisement)
Dealer Kavach is an app from MDG Services that tracks your outlet's filings, renewals, inspections and daily reports, and reminds you before deadlines, in Hindi and English.