GST Council recommends rate structure for Petroleum and Oil Sector
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.
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