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GST on Petrol and Diesel

Vehicles and fuel2710Outside GSTChecked 2 Nov 2026

HSNGST Outside GST

2710

Petrol, diesel, ATF, natural gas, LPG and lubricants

There is no GST on petrol and diesel for now: petrol, high speed diesel, aviation turbine fuel, crude oil and natural gas are covered by the GST law, but tax on them starts only from a date the GST Council recommends, and that has not happened. They continue to carry central excise duty and state VAT instead.

Other petroleum products are under GST: domestic LPG is 5%, commercial LPG and other gases 18%, and lubricants 18%. This page lists the codes, explains why businesses cannot claim credit on fuel and covers diesel generators and filters. Lubricants are on the engine oil page.

Petrol and diesel: codes and GST rates

Item / HSN / GST
  1. Petrol (motor spirit)Outside GSTCentral excise and state VAT
  2. High speed dieselOutside GSTCentral excise and state VAT
  3. Aviation turbine fuelOutside GSTExcise and VAT
  4. Petroleum crudeOutside GSTNot yet notified
  5. Natural gasOutside GSTNot yet notified
  6. LPG for household domestic consumers5%Specific entry
  7. Other LPG and petroleum gases18%Commercial cylinders
  8. Kerosene under PDS5%Public distribution
  9. Lubricating oils and greases18%Under GST
  10. Diesel generator sets18%Machinery, not fuel
  11. Fuel filters18%Filtering apparatus

Quick facts

  • Petrol and diesel

    Outside GST until the Council recommends a date
  • Taxes on fuel

    Central excise duty and state VAT
  • Domestic LPG

    5% (2.5% CGST + 2.5% SGST)
  • Commercial LPG

    18%
  • Input tax credit

    Not available on fuel, since no GST is charged
  • Lubricants

    2710 at 18%

Gst on petrol and diesel: codes and taxes

Fuels and their tax
FuelHSNTax
Petrol2710 12Excise and VAT, outside GST
Diesel (HSD)2710 19 30Excise and VAT, outside GST
ATF2710 19 20Excise and VAT, outside GST
Crude oil2709Outside GST
Natural gas2711 21Outside GST
Domestic LPG27115% GST
Commercial LPG271118% GST
PDS kerosene27105% GST
Furnace oil, LDO271018% GST

How much gst on petrol in India

None. A petrol pump bill shows the retail price, which already includes central excise duty, state VAT and dealer commission. There is no CGST or SGST on the bill. If petrol is brought under GST in future, the Council will notify the date and rate.

Diesel hsn code and businesses

Diesel is 2710 19 30. Because no GST is charged on diesel, a transporter, factory or contractor cannot take input tax credit for it. The VAT and excise in the price are a cost. This is one reason the GTA 5% option without credit is popular with transporters; see transport.

LPG hsn code and gst rate

LPG is 2711. LPG supplied to household domestic consumers is 5%. LPG for non-domestic exempted category customers by the public sector oil companies has a 5% entry too. Commercial and industrial LPG cylinders are 18%.

Fuel filter and diesel generator hsn code

Fuel filters and diesel filters for engines are 8421 23 at 18%. Diesel generating sets are 8502 at 18%; see machinery for other engines and pumps. The diesel used to run them has no GST, and no credit.

What businesses should do

  • Keep fuel bills separate from GST purchase records, since there is no credit to claim.
  • Do not include fuel in GST returns as an input.
  • If fuel is recovered from a client on a bill, the recovery is part of your service value and takes the service's GST rate.
  • Keep generator and vehicle running logs, since auditors often compare fuel costs with output.

Gst on petrol and diesel: what would change if they come in

If petrol and diesel are brought under GST, businesses would be able to claim credit on fuel, which would lower costs for transporters, factories and farms. States would lose the power to set their own VAT on fuel, which is one reason the change has not been made. Until a date is notified, keep treating fuel as outside GST. Car buyers can see vehicle rates on the car GST page.

Fuel taxes here are described in general terms. The GST Council can bring petroleum products under GST by recommending a date, so check the latest notifications on the GST portal and ask a GST practitioner or chartered accountant how fuel costs should be billed in your contracts.

Frequently asked questions

Is GST charged on petrol?

No. Petrol and diesel are outside GST for now and carry central excise and state VAT.

What is the diesel hsn code?

High speed diesel is 2710 19 30.

What is the petrol hsn code?

Petrol (motor spirit) is 2710 12.

What is the GST on LPG?

Domestic LPG is 5%. Commercial LPG is 18%.

Can businesses claim ITC on diesel?

No. Since no GST is charged on diesel, there is no credit to claim.