What state cess is added to the GST on fuel sold in Gurugram?

Detailed Legal Analysis

The state cess added to the GST on fuel sold in Gurugram is primarily the Haryana State Goods and Services Tax (Haryana GST) along with specific additional levies imposed by the state government on petroleum products.

In India, the taxation of fuel is a complex interplay between central and state taxes. While the Goods and Services Tax (GST) is applicable on most goods and services, petroleum products, including diesel and petrol, are currently outside the GST framework. Instead, they are subject to state-specific taxes such as Value Added Tax (VAT) and additional cess.

In Haryana, the following taxes are applicable on fuel:

• Value Added Tax (VAT): The VAT rate on petrol and diesel in Haryana is set by the state government and can vary. As of the latest updates, the VAT on petrol is 30% and on diesel is 24%.
• Haryana State Cess: The state government also imposes a cess on fuel, which is applicable on the sale price. This cess is in addition to the VAT and is intended for specific developmental purposes. The rate of cess can change based on state policies.

For the calculation of the total tax on fuel sold in Gurugram, the following steps are generally involved:

• Determine the base price of the fuel.
• Calculate VAT based on the applicable rate for petrol or diesel.
• Add the Haryana State Cess to the VAT calculated.
• Consider any other local taxes or surcharges that may apply.

It is essential for businesses involved in the sale of fuel to stay updated with the latest notifications from the Haryana government regarding changes in tax rates. The relevant laws governing these taxes include:

• Haryana Value Added Tax Act, 2003: This act governs the imposition of VAT in the state.
• Haryana Goods and Services Tax Act, 2017: While GST applies to many goods and services, this act outlines provisions applicable to goods sold within the state.

In conclusion, fuel sold in Gurugram is subject to the Haryana VAT and state-specific cess, and it is crucial for consumers and businesses alike to be aware of these components in order to understand the final pricing of fuel products.