The CBIC vide Notification No. 3/2017- Central Tax (Rate) dated June 28, 2017 (“NN. 3/2017-CT(R)”) notified 2.5% concessional CGST rate for supplies for exploration and production w.r.t Petroleum/ Coal bed methane operations w.e.f. July 01, 2017.
Further, the GST Council’s 47th meeting held on June 28-29, 2022 has recommended to rationalise exemption in form of GST concessional rate in the case of supplied made for Petroleum/Coal bed methane operations from 5% to 12% w.e.f. July 18, 2022.
Accordingly, following notification has issued:
The CBIC vide Notification No. 08/2022-Central Tax (Rate) dated July 13, 2022 amended NN. 3/2017-CT(R) so as to notify rationalised from 5% to 12% for goods supplied for Petroleum/ Coal bed methane operations in the following manner w.e.f. July 18, 2022: –
|Chapter||Description of Goods||Rate||Condition No.|
|Goods specified in the List annexed to this Table required in connection with:
(1) Petroleum operations undertaken under petroleum exploration licenses or mining leases, granted by the Government of India or any State Government to the Oil and Natural Gas Corporation or Oil India Limited on nomination basis, or
(2) Petroleum operations undertaken under specified contracts, or
(3) Petroleum operations undertaken under specified contracts under the New Exploration Licensing Policy, or
(4) Petroleum operations undertaken under specified contracts under the Marginal Field Policy (MFP), or
(5) Coal bed methane operations undertaken under specified contracts under the Coal Bed Methane Policy.
(6) Petroleum operations or coal bed methane operations undertaken under specified contracts under the Hydrocarbon Exploration Licensing Policy (HELP) or Open Acreage Licensing Policy (OALP)
Similar notifications have been passed under the Integrated Goods and Services Tax Act, 2017 (“the IGST Act”) and the Union Territory Goods and Services Tax Act, 2017 (“the UTGST Act”).
CGST (Rate) Notification: https://taxinformation.cbic.gov.in/view-pdf/1009438/ENG/Notifications
IGST (Rate) Notification: https://taxinformation.cbic.gov.in/view-pdf/1009458/ENG/Notifications
UTGST (Rate) Notification: https://taxinformation.cbic.gov.in/view-pdf/1009446/ENG/Notifications
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