NEW DELHI: Minister of State for Petroleum and Natural Gas Dharmendra Pradhan has urged the industry players to raise their concerns with oil and gas producing states to make changes in provisions that impact new investments and employment generation. He also assured them that he would convey their concerns on the goods and services tax to the finance minister for agreeable solutions.
Speaking here on Monday at a workshop to discuss the concerns on the likely impact of GST on the oil and gas sector, the minister acknowledged the points raised by the industry. Secretary for Petroleum and Natural Gas, K D Tripathi was with the minister to review the sector.
The industry pointed to the several provisions in the GST, which could have adverse impact on upstream, midstream and downstream petroleum products, also excluding crude oil, petrol, diesel, ATF and natural gas from GST.
The exclusion will result in huge stranded taxes in the hands of oil industry due to non-availability of input tax credit towards non-GST products. Further exclusion of pipeline network from the definition of plant and machinery may affect long-term capital investment in the pipeline projects.
The industry wants natural gas, CNG, bio-diesel and ethanol-blended petrol to be zero-rated.