Should petroleum products be brought under GST? Kerala High Court asks Union government, GST council to decide

The Kerala High Court on Monday asked the Goods and Service Tax (GST) Council to take a decision on a representation that sought to bring petroleum products under the GST regime (Kerala Pradesh Gandhi Darshanvedi Vs. Union of India). .While disposing of the petition, Division Bench of Chief Justice S Manikumar and Justice Shaji P Chaly, took note of an earlier decision of the Court that held that GST council cannot be mandated to make any decision and, therefore, chose to only direct the GST Council to forward the representation to the Union of India to take an appropriate decision within a period of six weeks..Advocate Arun B Varghese, representing the petitioner, submitted that different rates are charged for petrol and diesel in various states in India due to the different rates of tax levied by State governments under "fragmented taxing policies". This, he contended, hinders the achievement of a harmonised national market as envisaged under Article 279A(6) of the Constitution of India..The petitioner further added that rise in petrol prices has a ripple effect that creates inflation of prices of various other commodities which directly affects the common man. .He also alleged that Central and State governments intervene and control petrol prices when elections are imminent even though they claim that it is petroleum marketing companies that decide the prices. .Pertinently, he submitted that the non-inclusion of petrol and diesel under the GST regime are violative of Articles 14 and 21 of the Constitution of India..The petitioner sought directions to be issued to the State to refrain from levying the State tax on petrol and diesel until a decision was taken by the GST Council..Standing Counsel for the GST Council, PR Sreejith, cited a judgement of the Kerala High Court wherein a Division Bench had held that no mandamus can be issued to the GST Council to take any decision. He further submitted that Union of India is the competent authority to take a decision on this issue..Assistant Solicitor General, P Vijayakumar, also submitted that inclusion or deletion of GST is a policy decision and not a legislative matter. .The Court decided to only direct the GST Council to forward the representation to the Union of India to take an appropriate decision within a period of six weeks from the date of receipt of a copy of the representation.