New Delhi: While works contract services relating to oil and gas exploration in the offshore areas beyond 12 nautical miles shall attract 12 percent GST, the transportation of natural gas through pipeline will attract 5 percent GST without input tax credit, Finance Ministry said on Wednesday.
"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 Goods and Services Tax (GST) of 12 percent. Transportation of natural gas through pipeline will attract GST of 5 percent without input tax credits (ITC) or 12 percent with full ITC," the ministry said in a statement.
The decisions were taken by the GST Council in its 22nd meeting on October 6 with the aim to reduce the cascading of taxes arising on account of non-inclusion of petrol, diesel, Aviation Turbine Fuel (ATF), natural gas and crude oil and to incentivise investments in the exploration and production sector.
The Council also decided that the import of rigs and ancillary goods imported under lease will be exempted from Integrated GST, 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 has been reduced to 5 percent, both for foreign going vessels and coastal vessels, it said.
Notifications to give effect to these proposals will be issued shortly, it added.
Comments
0 comment