GST on Fuel Itself

• GST is not levied on petrol or diesel purchases in India as of now

• Fuel prices include VAT and state taxes but not GST directly

• This exclusion applies regardless of payment method, including credit cards

• The fuel bill issued at the pump reflects state-level taxes only

• GST applicability is regulated separately from central fuel pricing

GST on Fuel Surcharge

• A 1% fuel surcharge is added when paying with a credit card at pumps

• GST is charged on this surcharge component, not the fuel cost itself

• This GST is generally 18% of the surcharge amount

• It appears as a separate line item in the credit card statement

• Some cards offer waiver only on the surcharge, not on GST over it

Impact on Cardholders

• Cardholders effectively pay slightly more due to GST on surcharge

• Waiver benefits offered by fuel cards usually exclude GST components

• Statements reflect GST as a non-reversible charge even with waiver

• Total payment includes fuel cost, surcharge, and GST on surcharge

• Only the basic surcharge (1%) may be reversed through the waiver feature

Issuer Terms and Conditions

• Card issuers clearly mention GST charges in the fuel waiver policy

• Waiver limits and caps are calculated excluding GST charges

• GST charges apply uniformly across all cards unless specified otherwise

• Some premium cards may absorb the entire surcharge including GST

• Billing details are available in the monthly card statement or app

Tips to Minimize GST Burden

• Use co-branded fuel cards offering enhanced waiver features

• Check statements regularly to identify waived and charged components

• Refuel at partner pumps to ensure proper surcharge reversal

• Avoid multiple small transactions to reduce repeated GST incidence

• Track your card’s fuel waiver policy to understand exact exclusions