Should Petroleum, Alcohol, And Electricity Be Included Under GST?

• Author(s): Dr Karthik P; Shikha Bhatt ; Swetha R
• Paper ID: 1713188
• Page: 2304-2309
• Published Date: 31-12-2025
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 9 Issue 6 December-2025

Abstract

The Goods and Services Tax (GST) in India was a major tax reform that aimed at unifying the tax system and making it more transparent. However, some large sectors, such as petroleum, alcohol, and electricity, have been left out, resulting in uneven taxation and loss of input credit benefits. This paper examines their exclusion reasons, estimates the economic and fiscal effects of their inclusion, and identifies the benefits and challenges for the central and state governments. It uses only secondary data from government publications, research papers, and policy reports. In fact, the results indicate that the inclusion may lead to a simpler tax system, greater transparency, and strengthened fiscal coordination, though state compensation and implementation that is done with care are still necessary. The paper ends with the suggestion that a phased-in approach would help achieve a balanced, efficient, and growth-oriented tax framework for ??India.

Keywords

Goods and Services Tax (GST), Petroleum, Alcohol, Electricity, Fiscal federalism, State revenue, Tax reform in India.

Citations

IRE Journals:
Dr Karthik P, Shikha Bhatt , Swetha R "Should Petroleum, Alcohol, And Electricity Be Included Under GST?" Iconic Research And Engineering Journals Volume 9 Issue 6 2025 Page 2304-2309 https://doi.org/10.64388/IREV9I6-1713188

IEEE:
Dr Karthik P, Shikha Bhatt , Swetha R "Should Petroleum, Alcohol, And Electricity Be Included Under GST?" Iconic Research And Engineering Journals, 9(6) https://doi.org/10.64388/IREV9I6-1713188