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GST rate structure for Petroleum and Oil Sector

Capital Market 

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 rate 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 of 12%;

ii. Transportation of natural gas through pipeline will attract 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, 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.

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

First Published: Thu, October 12 2017. 14:41 IST
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