GST Council recommends rate structure for Petroleum and Oil Sector

GST Council recommends rate structure for Petroleum and Oil Sector

India Blooms News Service | @indiablooms | 11 Oct 2017

New Delhi, Oct 11 (IBNS): The Union Ministry of Finance announced on Wednesday that to reduce the cascading of taxes arising on account of non-inclusion of petrol, diesel, ATF, natural gas and crude oil in GST and to incentivise investments in the E&P (exploration and production) sector and downstream sector, the GST Council has made several recommendations.

The recommendations were made at the  22nd meeting held on Oct 6 in New Delhi.

The recommendations for GST rate structure for Specified Goods and Services according to the release are:

i. Offshore works contract services and associated services relating to oil and gas exploration and production in the offshore areas beyond 12 nautical miles shall attract GST of 12%;

ii. Transportation of natural gas through pipeline will attract GST of 5% without input tax credits (ITC) or 12% with full ITC

iii. Import of rigs and ancillary goods imported under lease will be exempted from IGST, subject to payment of appropriate IGST on the supply/import of such lease service and fulfilment of other specified conditions

Further, GST rate on bunker fuel is being reduced to 5%, both for foreign going vessels and coastal vessels.

Notifications to give effect to the above proposals will be issued shortly, the release said.

GST Council recommends rate structure for Petroleum and Oil Sector

India Blooms News Service
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