GET Stock QuotesNews18 APP
News18 English
»
1-min read

Industry Body FICCI Pitches For Bringing Natural Gas Under GST

Currently, crude oil, petrol, diesel, jet fuel or aviation turbine fuel (ATF) and natural gas are not included in GST, which kicked in from July 1.

PTI

Updated:November 16, 2017, 7:02 PM IST
facebookTwittergoogleskypewhatsapp
Industry Body FICCI Pitches For Bringing Natural Gas Under GST
Representative Image. (Image: Reuters)
Loading...
New Delhi: More than four months after the launch of Goods and Services Tax, the industry has pitched for inclusion of natural gas in the new indirect tax regime so as to help producers contain cost and aid in moving towards a gas-based economy.

In letter to Finance Minister Arun Jaitley, industry body Ficci has said that keeping natural gas out of the Goods and Services Tax is causing hardships and having adverse impact on the producers as it is increasing their costs.

Currently, crude oil, petrol, diesel, jet fuel or aviation turbine fuel (ATF) and natural gas are not included
in GST, which kicked in from July 1.

Hence, while various goods and services procured by the oil and gas industry are subjected to GST, the sale and supply of oil, gas and petroleum products continue to attract earlier taxes like excise duty and VAT.

Unlike other industries which can take credit for any tax paid towards furtherance of business, no credits on input GST will be available to the oil and gas industry leading to huge additional indirect tax burden.

"This is against the basic objective of GST which is to ensure that input taxes are not blocked in the system ie tax cascading is eliminated," Ficci said in the letter.

Currently, gas sales including CNG and piped gas supplies attract lower VAT, ranging from 5 per cent to 12 percent and inclusion of natural gas in GST should not result in any large revenue loss, it said.

"This will be in keeping with the overall policy of the government to shift over to the cleaner fuels and increase the use of gas from present 5 percent in the energy basket to at least 15 percent by 2022," the letter said.

A GST based taxation for the natural gas sector would help the domestic gas producers to contain costs and also help spread use of natural gas which is 40 per cent leaner than conventional fuels, it said.

The chamber has requested the Centre and states to immediately consider covering natural gas under GST to avoid cascading effect and ensuring that the industries presently operating on natural gas do not get a "raw deal" under GST.

Until introduction of GST on natural gas, the producers should get a refund of GST paid on all goods and services use din the exploration and production, it added.
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp
Most Active
Company Price Change %Gain
Reliance 1,139.75 1.17
ICICI Bank 313.35 -1.89
IndusInd Bank 1,626.95 -1.56
Dewan Housing 281.60 -3.64
HDFC Bank 2,008.05 1.32
Company Price Change %Gain
Dewan Housing 281.35 -4.14
Lupin 880.45 4.15
Yes Bank 245.90 -0.32
Reliance 1,139.80 1.19
HUL 1,526.60 -2.68
Top Gainers
Company Price Change %Gain
Dr Reddys Labs 2,566.85 4.75
Cipla 647.85 4.01
Infosys 698.80 2.95
ITC 282.50 2.65
BPCL 296.35 2.58
Company Price Change %Gain
Infosys 699.10 2.95
ITC 281.60 2.51
ONGC 160.00 1.78
TCS 1,949.15 1.60
Sun Pharma 599.50 1.50
Top Losers
Company Price Change %Gain
Bajaj Finserv 5,634.25 -3.08
HUL 1,526.30 -2.76
HPCL 212.50 -2.70
M&M 749.00 -2.54
GAIL 351.05 -2.30
Company Price Change %Gain
HUL 1,526.60 -2.68
M&M 748.60 -2.63
ICICI Bank 313.20 -1.76
Vedanta 210.95 -1.52
Axis Bank 575.85 -1.51

Live TV

Loading...
Loading...