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

Detailed Legal Analysis

In Guwahati, the state cess added to the Goods and Services Tax (GST) on fuel is the Assam Value Added Tax (AVAT) and the additional excise duties imposed by the state government.

The taxation structure on fuel in Assam, including Guwahati, is governed by both the Central and State laws. The fuel prices are influenced by various components, including the GST, which is currently set at 28% for petroleum products, along with state-specific levies.

• GST on Fuel: The GST rate on petroleum products, including diesel and petrol, is 28%. However, it is essential to note that petroleum products are currently outside the ambit of GST and are instead taxed under the old VAT regime.
• Assam Value Added Tax (AVAT): In Assam, the AVAT on petrol is 35% and on diesel is 27%. These rates are applicable to the taxable value of the fuel before the addition of GST.
• Additional Cess: The state government may impose additional cess or surcharges, which can vary depending on the prevailing economic conditions and state policies.

Moreover, the essential legal frameworks regulating these taxes include:

• Goods and Services Tax Act, 2017: This act governs the imposition of GST in India, though petroleum products are excluded from its purview under Section 9(2) of the GST Act.
• Assam Value Added Tax Act, 2003: This act regulates the levy of VAT in Assam, including the applicable rates on fuel products.
• Taxation Laws (Amendment) Act, 2019: This act provides for the imposition of additional taxes or cesses related to specific goods, including petroleum products.

Overall, while the GST component remains fixed at 28%, the effective tax rate on fuel in Guwahati is influenced heavily by the AVAT and any additional state cesses, leading to a significant total tax burden on consumers. Keeping abreast of state government notifications is crucial, as these rates can be subject to change based on fiscal policies and economic conditions.