Wed, Oct 18, 2017

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 in its 22nd meeting held on 6 October, 2017 has made sme recommendations for GST rate structure for Specified Goods and Services

Following are the recommendations:

  1. 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%
  2. Transportation of natural gas through pipeline will attract GST of 5% without input tax credits (ITC) or 12% with full ITC
  3. 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.