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

Detailed Legal Analysis

In Rourkela, the state cess added to the Goods and Services Tax (GST) on fuel is primarily the "Odisha Rural Employment and Guarantee Scheme Cess" (OREGSC), along with an additional "State Value Added Tax" (VAT) component that varies based on the type of fuel.

The GST on fuel is structured under the GST regime, which was implemented by the Goods and Services Tax Act, 2017, and is governed by the following provisions:

• Goods and Services Tax Act, 2017: This act consolidates various indirect taxes into a single tax regime. Fuel, however, is primarily taxed by the state governments under VAT.
• State Value Added Tax (VAT): In Odisha, VAT on petrol and diesel is determined by the Odisha Value Added Tax Act, 2004.
• Odisha Rural Employment and Guarantee Scheme Cess: This is a cess levied on the sale of fuel in the state, aimed at providing employment and ensuring social security.

The current structure of taxation on fuel in Rourkela includes:

• GST Rate: While fuel is generally outside the purview of GST, the central government has indicated possible future inclusion, but as of now, it remains under state taxes.
• VAT on Petrol: In Odisha, the VAT on petrol can be as high as 26% plus the cess.
• VAT on Diesel: The VAT on diesel is generally lower than petrol, around 18% plus applicable cess.
• Additional Cess: The OREGSC can add an additional percentage to the overall cost of fuel and is subject to change based on state legislative decisions.

It is important for consumers and businesses in Rourkela to stay updated on these rates, as they can fluctuate based on government policies and economic conditions. Regular updates are published by the Odisha government and the Central Board of Indirect Taxes and Customs (CBIC).

In summary, when purchasing fuel in Rourkela, consumers should be aware of the combined impact of the state VAT and the OREGSC, which collectively contribute to the final retail price of fuel.