GST rates on bunker fuel reduced to 5%; tax set for offshore oil, gas sales

The transportation of natural gas through pipeline will attract 5% GST

Two days after Prime Minister Narendra Modi held a meeting with heads in the petroleum industry, the government said it would soon issue notifications lowering the goods and services tax (GST) rates on the sector.

 
On Friday, the GST Council had revised the rates on transport of natural gas through pipelines and offshore work, partially addressing concerns on cascading of taxes for the sector. Transportation of natural gas through a pipeline would attract five per cent GST without input tax credit and 12 per cent with it.
 
“To reduce the cascading of taxes arising on account of