Taxes on Petrol and Diesel in India

What Is the State Wise Tax on Petrol & Diesel in India?

 

With the rising fuel prices and increased VAT, few states registered growth in VAT collection. As of July 2021, states like Rajasthan and Madhya Pradesh fall under this category. Andaman and Nicobar Island was the lowest. 

The primary difference was in the amount of VAT levied by each government. For example, Madhya Pradesh charges ₹31.55 per litre VAT on petrol, and Rajasthan levies ₹21.82 per litre VAT on diesel. While in Andaman and Nicobar Island, people pay only ₹4.82 per litre on petrol and ₹4.74 per litre on diesel. 

 

Take a look at the table below showcasing the different tax rates on petrol and diesel in major Indian states and union territories -

States

VAT on Diesel

VAT on Diesel

Madhya Pradesh

₹3/L VAT + 23% VAT+ +1% cess

₹4.5/L VAT+ ₹33% VAT +1%cess

Rajasthan

₹1750/KL road development cess + 26% VAT

₹1500/KL road development cess + 36% VAT

Manipur

22.50%

36.50%

Telangana

27%

35.20%

Assam

23.66% or ₹17.45/L. VAT minus rebate of ₹5/L is applicable

32.66% or ₹22.63/L. VAT minus rebate of ₹5/L is applicable.

Delhi

16.75% VAT + ₹250/KL air ambience charges

30%

Uttar Pradesh

17.48% or ₹10.41/L

26.80% or ₹18.74/L

Andhra Pradesh

₹4/L VAT + ₹1/L road development cess and VAT + 22.25% VAT

₹4/L VAT + ₹1/L road development cess and VAT+ 31% VAT

Bihar

19% or ₹12.33/L (30% surcharge on VAT as irrecoverable tax)

26% or ₹16.65/L(30% surcharge on VAT as irrecoverable tax)

Maharashtra (Thane, Navi Mumbai, Mumbai)

₹3.00/L additional tax + 24% VAT

₹10.12/L additional tax + 26% VAT

Rest of the Maharashtra

₹3.00/L additional tax + 21% VAT

₹10.12/L additional tax + 25% VAT

Andaman and Nicobar Island

₹4.74/L

₹4.82/L

Note: The example of state government tax on petrol in India mentioned below explains the fuel tax structure of Delhi as of May 2021.

Breakdown of Tax Structure on Petrol & Diesel in Delhi

 

Petrol

Base price

₹34.19/L

Freight charges

₹0.36/L

Dealer’s charges (excluding the charges of VAT and excise duty)

₹34.55/L

Commission of dealers

₹3.77/L

Excise duty

₹32.90/L

VAT (inclusive of dealer’s commission)

₹21.36/L

State levies ₹21.36/L out of the total price of ₹92.58/L on petrol. On the other hand, the Central Government charges ₹32.90/L. The total combined taxes on petrol stands at ₹52.26.

 

Diesel

Base price

₹36.2/L

Freight charges

₹0.33/L

Dealer’s charges (excluding the charges of VAT and excise duty)

₹36.65/L

Commission of dealers

₹2.58

Excise duty

₹31.80

VAT (inclusive of dealer’s commission)

₹12.19

The central excise tax constitutes ₹31.80, and VAT is ₹12.19 on the base price of diesel. This comprises the retail cost of ₹83.22.

 

The tax rates on petrol and diesel keep changing. One such factor for higher VAT and excise duty is to meet higher expenses due to the current global health crisis. Therefore, keep yourself updated with the tax on petrol and diesel in India state wise. This will help you to avoid any confusion later.

Frequently Asked Questions