Petrol bunks & GST (1): fuel is outside GST, but the business is not

Petrol, diesel, ATF, natural gas and crude remain outside GST (Section 9(2)), so fuel sales bear VAT/excise. Lubricants, other goods and services at the outlet are taxable under GST.

• Section 9(2) of the CGST Act: GST on petroleum crude, high-speed diesel, motor spirit (petrol), natural gas and aviation turbine fuel applies only from a date notified on the GST Council's recommendation. No such date has been notified, and in September 2025 the Government again kept petrol and diesel outside GST. These fuels continue under central excise and State VAT.
• Taxable under GST at a typical outlet: lubricants/engine oils, other goods sold (accessories, packaged items), and services (e.g. rent received, commissions), at the applicable rates.
• Registration: a person engaged exclusively in supplying goods not liable to tax need not register (Section 23). Most outlets also sell taxable goods like lubricants, so registration rules apply. Aggregate turnover (Section 2(6)) includes exempt supplies, and "exempt supply" (Section 2(47)) includes non-taxable supply. Test the threshold with this in mind and take professional advice.
• Invoices: fuel sales are shown as non-GST supplies. Report non-GST outward supplies in the GSTR-1 nil/exempt/non-GST table and in GSTR-3B Table 3.1(e).
• State VAT: fuel sales need VAT returns under the State VAT law. Keep VAT and GST ledgers separate.