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<h1>Tax Incidence on Fuel: states may levy additional taxes above GST, keeping retail prices similar.</h1> If petrol and diesel are brought into GST, they would attract the peak GST rate supplemented by additional state levies so that the combined GST-plus-state tax equals the current aggregate tax incidence (central excise plus state VAT), preserving centre and state revenues and keeping retail prices broadly unchanged; exclusion persists because current total taxation exceeds the highest GST slab and states rely heavily on petroleum-derived revenues.