Fuel is outside GST
Petrol, high-speed diesel, aviation turbine fuel, natural gas and crude oil are not taxed under GST at present. They carry central excise duty and state VAT (sales tax) instead. So a pump does not issue GST tax invoices for petrol or diesel, and the tax on fuel purchases is recorded separately from GST.
Lubricants and shop sales are under GST
Engine oil, lubricants, coolant, additives, and anything sold in a shop or convenience store are ordinary goods under GST. They need proper tax invoices with your GSTIN, the HSN code, the taxable value and the CGST and SGST (or IGST for an interstate supply).
- Number invoices in one continuous series per financial year, without gaps.
- Don't edit an issued invoice. Cancel it before filing, or issue a credit note after.
- Keep an HSN-wise summary for GSTR-1.
Input tax credit at a pump
Because a pump makes both taxable supplies (lubricants, shop) and supplies outside GST (fuel), input tax credit on common expenses may have to be reversed in proportion under the GST rules. This is the area where pumps most often get notices. Keep purchases split cleanly — fuel purchases, non-fuel purchases, and common expenses — and ask your accountant to work out the reversal.
Records to keep
- Tax invoices for every non-fuel sale, and credit/debit notes.
- Purchase invoices, with fuel and non-fuel kept apart.
- Monthly invoice list and HSN summary for GSTR-1.
- Fuel purchase tax (VAT and excise) records, kept separately.
Frequently asked questions
Is there GST on petrol and diesel in India?
No. Petrol and diesel are currently outside GST and carry central excise and state VAT instead.
Do I need GST registration for a petrol pump?
If your pump sells lubricants or other taxable goods above the registration threshold — which almost every pump does — you need to be GST-registered. Confirm your position with your accountant.