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

Detailed Legal Analysis

In Thiruvananthapuram, the state cess added to the Goods and Services Tax (GST) on fuel sold is the Kerala Cess on Petrol and Diesel. This cess is levied in addition to the GST applicable on these fuels.

The current rates of GST on fuel products are as follows:

• 5% GST on natural gas.
• 12% GST on petrol.
• 28% GST on diesel.

In addition to the GST, the Kerala government imposes a specific cess on the sale of petrol and diesel, which varies according to the type of fuel:

• Kerala Cess on Petrol: ₹2.00 per litre.
• Kerala Cess on Diesel: ₹2.00 per litre.

The relevant legislation governing the imposition of this cess includes:

• The Kerala Finance Act, 2021 which introduced various cesses to fund state expenditure.
• The Goods and Services Tax Act, 2017 which provides the framework for the levying of GST across India.

Under Section 14 of the Central Goods and Services Tax Act, 2017, the GST rate may vary based on the nature of the goods or services supplied. However, petroleum products are currently outside the purview of GST and continue to be taxed under the existing state laws, including the Kerala Value Added Tax Act, 2003, and the Kerala Cess on Petroleum Products Act.

Additionally, it is pertinent to note that the cess imposed by the Kerala government is intended to address specific state-level needs, such as infrastructure development and social welfare programs. This means that while GST is uniform across states, the cess can vary significantly, reflecting the state's fiscal policies and priorities.

In summary, while GST is a central tax applicable to fuel, the Kerala Cess is a state-level tax that adds to the overall cost of fuel sold in Thiruvananthapuram, thereby affecting consumers directly.