Centre Cuts GST Rates On Oil Exploration & Production

Centre Cuts GST Rates On Oil Exploration & Production

Setting the stage for inclusion of some of the petroleum products in the Goods and Services Tax (GST) regime, the government on Wednesday reduced GST rates for exploration and production sector to reduce the cascading effect arising on account of non-inclusion of petrol, diesel, aviation turbine fuel, natural gas and crude oil.

The latest move by the government comes after it reduced basic excise duty on petrol and diesel by Rs 2 per litre last week, following which governments of Gujarat, Maharashtra and Himachal Pradesh also reduced the VAT rates on petrol and diesel in their respective states.

Detailing the recommendations made by the GST Council in its 22nd meeting on Friday, the finance ministry in a statement said that GST rate on offshore works contract services and associated services relating to oil and gas exploration and production in the offshore areas beyond 12 nautical miles would be 12 per cent, lower than the earlier decided rate of 18 per cent. Read More…

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