The energy sector, and in particular, fossil fuels are a significant contributor to the overall revenue of India’s central and state governments. For example, the GST Compensation Cess, which started in 2010-11 with a cess of ₹50/ton on all coal has kept increasing over the years and now stands at ₹400/ton. Further, governments have traditionally depended heavily on taxes from petrol and diesel, and recent increases in excise and VAT further demonstrate this. Roughly 60-70% of the final prices of diesel and petrol respectively are made up of taxes. The total contribution to public tax revenue from taxes on coal, petroleum & natural gas, and electricity sectors amounted to about ₹6 lakh crores out of a total revenue of about ₹34 lakh crores in 2018-19. The taxes on energy sectors contributed 25% of the total tax revenue of the Centre, and 13% of the total tax revenue to the states. Since many energy sources are outside GST, these taxes cannot be offset. Moreover, since the bulk of the tax revenues from the energy sector accrue from fossil fuels, the inevitable energy transition away from fossil fuels towards renewables and electric mobility will have a significant impact on public tax revenues.