State Wise Taxes on Petrol and Diesel in India
The central and state governments levy taxes on fuel purchases. The tax includes 55% of the overall retailing petrol price. On the other hand, for diesel, the tax constitutes 50% of the entire retail price. Having said that, the petrol and diesel taxes vary from state to state as different states levy different Value Added Tax (VAT) and sales tax.
What is the State Wise Tax on Petrol and Diesel in India?
As we all know that fuel prices do not remain the same. It keeps on changing and various tax components like excise duty play significant role in this process. For instance, the excise duty on diesel and petrol in India has reduced by Rs.6 per litre and Rs.8 per litre, respectively.
States | VAT on Diesel | VAT on Petrol |
Andaman and Nicobar Island | Rs.4.74 per litre | Rs.4.82 per litre |
Maharashtra | Rs.3 per litre additional tax + 24% VAT | Rs.10.12 per litre additional tax + 26% VAT |
Bihar | 19% (30% surcharge on VAT) | 26% (30% surcharge on VAT) |
Andhra Pradesh | Rs.4 per litre VAT + Re.1 per litre road development cess and VAT + 22.25% VAT | Rs.4 per litre VAT + Re.1 per litre road development cess ad VAT + 31% VAT |
Uttar Pradesh | 17.48% | 26.80% |
Delhi | 16.75% VAT + Rs.250 per KL air ambience charges | 30% |
Assam | 23.66%. VAT minus rebate of Rs.5 per litre | 32.66%. VAT munus rebate of Rs.5 per litre |
Telangana | 27% | 35.20% |
Manipur | 22.50% | 36.50% |
Rajasthan | Rs.1,750 per KL road development cess +26% VAT | Rs.1,500 per KL road development cess + 36% VAT |
Madhya Pradesh | Rs.3 per litre VAT + 23%VAT + 1% cess | Rs.4.5 per litre VAT + 33% VAT + 1% cess |
Breakdown of Tax Structure on Petrol and Diesel in Delhi
Petrol
Base | Rs.34.19 per litre |
Freight charges | Rs.0.36 per litre |
Commission of dealers | Rs.3.77 per litre |
Dealer’s charges (except VAT and excise duty) | Rs.34.55 per litre |
Excise duty | Rs.32.90 per litre |
VAT (including dealer’s commission) | Rs.21.36 per litre |
The state government levies Rs.2136 per litre out of Rs.96.58 per litre. The central government, on the other hand levies Rs.32.90 per litre. Thus, the total tax combining state and central taxes on petrol is Rs.52.26.
Diesel
Base | Rs.36.2 per litre |
Freight charges | Rs.0.33 per litre |
Commission of dealers | Rs.2.58 per litre |
Dealer’s charges (except VAT and excise duty) | Rs.36.65 per litre |
Excise duty | Rs.31.80 |
VAT (including dealer’s commission) | Rs.12.19 per litre |
The central excise tax is Rs.31.80 and VAT is Rs.12.19. Thus, the retail cost diesel is Rs.83.22.
The petrol and diesel taxes keep on changes. The primary reason behind such higher excise duty and VAT is to fulfil the higher expenses owing to the current global health crisis.
FAQs on Taxes on Petrol and Diesel in India
- What is the VAT on diesel and petrol in Madhya Pradesh?
The VAT on diesel and petrol in Madhya Pradesh is 23% and 33%, respectively.
- Do the crude oil prices increase or decrease the fuel taxes in India?
Yes. If the price of crude oil increases, the fuel taxes will automatically rise.
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