Major oil and gas players in the country have sought intervention from the ministry of petroleum to include crude oil, petrol, diesel, aviation turbine fuel and natural gas under the goods and service tax (GST) ambit.
In a workshop moderated by the petroleum ministry today, the companies highlighted that the exclusion will result in huge stranded taxes in the hands of oil industry due to non-availability of Input Tax Credit towards non-GST products. As per industry estimates, the overall GST impact on petroleum sector will be to the tune of Rs 25,000 crore. Petroleum Minister Dharmendra Pradhan has assured the companies that their concerns will be raised before the finance ministry. Read more