Proposed GST on Petroleum and Gas Sector
Government of India is keen to reduce the Cascading Effect of taxes causing by non-inclusion of Petrol, Diesel, ATF ( Aviation Turbine Fuel ), Natural Gases and Crude Oil in GST Regime and to make it lucrative investments in the E&P (Exploration and Production) sector and downstream sector, the GST Council 22nd meet which was held on 6th October, 2017 has recommended following Proposals for GST rate structure for Oil and Petroleum Sector :
i. GST @ 12% on Contract Services for Offshore works and Auxiliary Services relating to Oil and Gas Exploration and Production in the offshore areas beyond 12 nautical miles.
ii. GST @ 5 % without ITC (Input Tax Credits ) or 12% with full ITC on Transportation of Natural Gas through pipeline.
iii.Exemption from IGST on Import of Rigs and ancillary Goods (Under Lease ) on payment of appropriate IGST on the supply or import of above mention Lease Services and compliance of other special conditions ,
iv GST on Bunker Fuel Oil is being reduced to 5% for foreign going vessels and coastal vessels.
Related Notifications will be issued shortly
(Disclaimer : the given information is for education purpose only,kindly go through official notification )