Industry body Confederation of Indian Industry (CII) on Tuesday sought the inclusion of petroleum and natural gas products under the unified indirect tax regime GST at the earliest.

According to CII, till the time that petroleum and natural gas derived goods come under GST, the system of "C Form" should be continued to avoid high tax incidence on these products.

"C Form" system is used to avoid double taxation on "goods" being sold on a inter-state level.

"... After introduction of GST, credit on VAT paid on petroleum products, including natural gas, is not available and the amendment of the CST act has significantly altered inter-state sale of the products," CII pointed out.

"Therefore, post-GST, there has been an increased tax cost on the products, which was not the intent of the government."