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

Detailed Legal Analysis

In Vellore, Tamil Nadu, the state cess added to the Goods and Services Tax (GST) on fuel sold is primarily the "State Goods and Services Tax" (SGST) along with additional cesses specific to petroleum products.

Fuel in India, particularly petrol and diesel, is subject to a complex tax structure that includes both Central and State levies. Here’s a breakdown of the components involved:

• Goods and Services Tax (GST):
  • Petrol and diesel are currently outside the purview of GST. They are taxed under the previous indirect tax regime, which includes VAT (Value Added Tax).
  • However, the GST regime does allow for the imposition of SGST by the states.
• State Cess on Fuel:
  • The Tamil Nadu government levies a specific tax on petrol and diesel. This is not a GST but a state-specific tax that is applied in addition to the VAT.
  • As of the latest updates, the state cess on petrol can be around ₹20 per litre, while diesel could attract a cess of approximately ₹12 per litre, though these rates are subject to change based on state budget announcements.
• VAT on Fuel:
  • In Tamil Nadu, petrol is subjected to a VAT rate that can be as high as 35%, and diesel generally has a VAT rate around 14.5%.
  • The exact VAT rates can vary, and it is advisable to consult the latest notifications from the Tamil Nadu Commercial Taxes Department for the most accurate figures.

The relevant laws governing these levies include:

• The Tamil Nadu Value Added Tax Act, 2006: This act governs the imposition of VAT in the state, including rates for petroleum products.
• The GST Act, 2017: While fuel is currently outside the GST framework, the act lays the groundwork for the GST system.

For the most accurate and current rates, businesses and consumers should regularly check updates from the Tamil Nadu government and the Ministry of Finance.