States and the GST Council have to decide when they will bring petroleum products under GST. “No amendment (to the law) will be required. Whenever the states decide to bring this under the new regime, it can be done.” said Finance minister Nirmala Sitharaman Back in 2017 when the GST regime was introduced, the central government as well as the state governments had consciously decided to keep the five petroleum products, i.e. crude oil, petrol, diesel, ATF and natural gas out of the GST net. However, kerosene, cooking gas and naphtha was included under the GST. In the past, it has been speculated that petroleum products will be brought under the GST net, sooner or later. However, as the FM pointed out, the states will have a final call on this matter. With the government planning to boost revenue, the inclusion of Petroleum products under GST seems inevitable. This can in turn help corporations take benefit of ITC. Sitharaman informally proposed to the GST Council to consider a situation, where tax rates rationalization can take place once a year. Her comments come in the backdrop of frequent changes in rates ever since the new regime kicked in over two years ago and indicated that the Centre was keen on bringing about stability at a time when collections have remained lower than the target. Sitharaman hinted that there could be some “grandfathering” option available to the investors, who have already made long-term investments, keeping in mind the previous tax regime.