1. Introduction

Traditionally, the movement of petroleum products from outside the state into Kerala was governed by interstate trade provisions and general GST requirements. Under the earlier system, while certain documentation and compliance checks were in place, there was no explicit mandate for obtaining a separate permit for such imports. With rising concerns over revenue leakage, tax evasion, and effective control of high-value petroleum products, the Government of Kerala has now issued a circular that makes a permit mandatory before the products enter the state. This shift represents a move toward enhanced accountability and stricter regulatory oversight.

Framework and Compliance

The State Goods and Services Tax (SGST) Department has issued a notification making it mandatory to obtain a permit for bringing petroleum products into Kerala from outside the state, effective from April 10, 2025.

As per the notification, individuals transporting 50 litres or more of petroleum products into Kerala from outside must carry valid documents such as a bill or delivery note, along with the original permit approved by the Deputy Commissioner, Taxpayer Services Headquarters, Thiruvananthapuram. This permit must be carried during the movement of goods.

Only 75 litres of petroleum products can be transported into the state under a single permit. Additionally, only one permit will be issued per individual per week, and each permit will be valid for 3 days.

However, petroleum products brought into the state by oil companies and recognised establishments registered under the Kerala General Sales Tax Act, 1963 for retail sale of petroleum products are exempt from this permit requirement as per the said notification.

6. Conclusion

The transition to a mandatory permit system for bringing petroleum products from outside Kerala marks a significant regulatory overhaul. While the old system relied on standard documentation and periodic audits, the new provisions introduce a proactive, permit-based regime. This not only tightens control over interstate movement but also aligns with broader revenue assurance and compliance goals under the GST framework.

For businesses, this means an additional administrative step during shipment planning, but it also works toward a more transparent and accountable system. For the state, it enhances the ability to track, verify, and enforce compliance, ultimately aiming to secure tax revenues and prevent misuse of petroleum product movements.