Petrol and diesel may get cheaper as GST Council suggests doing away with the cascading taxes on petrol and diesel.
11 Oct 2017 | 3186 Views | By Autocar Pro News Desk
The high prices of fuel to the Indian exchequer, due to the onus of tax burden may soon come down. The GST Council in its 22nd meeting noted that the cascading of taxes arising on account of non-inclusion of petrol, diesel, ATF, natural gas and crude oil in GST needs to ...
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The high prices of fuel to the Indian exchequer, due to the onus of tax burden may soon come down. The GST Council in its 22nd meeting noted that the cascading of taxes arising on account of non-inclusion of petrol, diesel, ATF, natural gas and crude oil in GST needs to go away. It has recommended to bring the fuels under the purview of GST and has suggested to incentivise investments in exploration and production (E&P) sector and downstream sector.
The Council in its meeting held on October,6 2017 has made the following recommendations for GST rate structure for Specified Goods and Services:
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 percent.
2. Transportation of natural gas through pipeline will attract GST of 5 percent without input tax credits (ITC) or 12 percent 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.
Also, GST rate on bunker fuel is being reduced to 5 percent, both for foreign going vessels and coastal vessels.
The Council said a notification to give effect on the proposal would be issued shortly.
Also read : Gujarat & Maharashtra cut VAT on petrol and diesel