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GST rate structure for Petroleum and Oil Sector

Delhi 

rate structure for Petroleum and Sector

To reduce the cascading of taxes arising on account of non-inclusion of petrol, diesel, ATF, natural gas and in and to incentivise investments in the E&P (exploration and production) sector and downstream sector, the Council in its 22nd meeting held on 6thOctober, 2017 has made the following recommendations for structure for Specified Goods and Services:

i. Offshore works contract services and associated services relating to 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, 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.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, October 11 2017. 00:20 IST