Oil firms may take a collective hit of Rs 25,000 crore as a result of GST

Oil firms may take a collective hit of Rs 25,000 crore as a result of GST

Oil companies will have to take a collective hit of about Rs 25,000 crore a year after the roll-out of the goods and services tax since most of their output is outside the ambit of the new system, the finance chief of the state-run Oil and Natural Gas Corporation has said.

From July 1, India will roll out GST that includes most goods and services but excludes crude oil, natural gas, petrol, diesel and jet fuel. The exclusion of these goods from GST is part of the trade-off Centre conceded to address states’ fear of losing out on revenue from taxes on oil sales, a key source of their income. Other oil products such as kerosene, liquefied petroleum gas and naphtha are included in the GST. Read More…

 

Credit By : The Economics Times

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