House Passes Bill To Plug VAT Leakage From Reliance BP Mobility
Bill targets loopholes in Reliance BP Mobility transactions, raising monthly VAT
Hyderabad: The Assembly on Monday passed a Bill to amend the Telangana Value Added Tax Act, 2005, to bring Reliance BP Mobility to plug loopholes that were allowing it to pay less than what it is due to the state.
Excise and prohibition minister Jupally Krishna Rao, who piloted the Bill, told the Assembly that the amendment replaced a government order issued in 2025 that plugged gaps in VAT receipts from Reliance BP Mobility that stood at around Rs 28 crore a month to around Rs 47 crore a month after the orders were issued last year.
The minister said normally VAT of 27 per cent on diesel, and 35.2 per cent on petrol is collected at the first sale point – that is, from the oil companies to the outlets. With respect to Reliance BP Mobility, which came into being in 2020, it was noticed that Reliance Industries, which runs the refineries, was selling the fuels to Reliance BP Mobility, which was then adding its profit margins and selling fuel at the outlets. This second transaction, before the fuel reached outlets, was noticed in 2025, and the government issued a GO to plug the VAT leakage on account of the second inter-company sales, he said.
The Bill, the minister said, sought to replace a GO issued on June 18, 2025, to plug this leakage. After the orders were issued, the average VAT collection from the company rose from Rs 28 crore a month between July 2024 and July 2025, to Rs 47 crore a month after July 2025, Krishna Rao said.
He said the House should approve the Bill as it effectively plugged revenue leakages and increased the state’s income. Later, the House approved the Bill.
