Is there GST on petrol and diesel?

No. Petrol, diesel, crude oil, natural gas and aviation turbine fuel are currently kept outside GST. They are taxed by central excise duty and state VAT instead, which is why prices differ from state to state.

Why isn't fuel under GST yet?

Petroleum products are constitutionally within GST but the GST Council has not yet notified a date to bring them in. Fuel taxes are a major revenue source for both the centre and states, so a rate and revenue-sharing formula has to be agreed first.

Can a business claim input tax credit on a fuel bill?

No. Because there is no GST on petrol or diesel, there is no input tax credit to claim. Businesses still use fuel bills as a deductible business expense in their accounts.

What does a petrol pump bill show?

The outlet name and address, date and time, fuel type, rate per litre, quantity in litres, the total amount, and often the vehicle number and the pump's identifiers. There is no separate GST line because fuel is outside GST.

Can I claim fuel for mileage reimbursement?

Yes. Employees who use a personal vehicle for work commonly submit fuel bills (or a per-kilometre log) for reimbursement under their company's policy. Keep the dated bills as proof.

Is There GST on Petrol & Diesel? Fuel Bill Tax Explained (2026)

1. Is there GST on petrol & diesel?

No. Petrol, diesel, crude oil, natural gas and aviation turbine fuel are kept outside the GST net for now. So a fuel bill never shows CGST, SGST or IGST. The price you pay is built from the base cost plus central excise duty and state VAT.

2. Why fuel is outside GST

Petroleum products are constitutionally within GST, but the GST Council has not yet notified a date to include them. Fuel taxes are one of the largest revenue sources for both the central and state governments, so they must first agree on a GST rate and a revenue-sharing arrangement. Until then, the old excise + VAT structure continues.

3. What taxes a fuel bill carries

Component	Levied by
Base price + dealer commission	Oil marketing company / dealer
Central excise duty	Central government
State VAT / sales tax	State government (varies by state)
GST	Not applicable — fuel is outside GST

Because VAT rates differ by state, the same litre of petrol costs different amounts in, say, Maharashtra and Goa.

4. What a fuel bill shows

Outlet name and address (IOCL, BPCL, HPCL, Reliance, etc.).
Date and time of fuelling.
Fuel type — petrol, diesel, CNG.
Rate per litre, quantity and the total amount.
Often the vehicle number and pump identifiers.

Need a copy of a lost receipt? Recreate the exact format with our free fuel bill generator.

5. Using fuel bills for claims

Employees who drive for work submit fuel bills for reimbursement or to support a per-kilometre mileage claim under company policy. Businesses book fuel as a deductible expense. There is no ITC to claim because there is no GST. For your GST-able invoices, see the invoice format guide.

This is general information, not tax advice. Rules and rates change; confirm at gstcouncil.gov.in.

6. Frequently asked questions

Is there GST on petrol and diesel?: No. Petrol, diesel, crude oil, natural gas and aviation turbine fuel are currently kept outside GST. They are taxed by central excise duty and state VAT instead, which is why prices differ from state to state.
Why isn't fuel under GST yet?: Petroleum products are constitutionally within GST but the GST Council has not yet notified a date to bring them in. Fuel taxes are a major revenue source for both the centre and states, so a rate and revenue-sharing formula has to be agreed first.
Can a business claim input tax credit on a fuel bill?: No. Because there is no GST on petrol or diesel, there is no input tax credit to claim. Businesses still use fuel bills as a deductible business expense in their accounts.
What does a petrol pump bill show?: The outlet name and address, date and time, fuel type, rate per litre, quantity in litres, the total amount, and often the vehicle number and the pump's identifiers. There is no separate GST line because fuel is outside GST.
Can I claim fuel for mileage reimbursement?: Yes. Employees who use a personal vehicle for work commonly submit fuel bills (or a per-kilometre log) for reimbursement under their company's policy. Keep the dated bills as proof.