Amendment to Notification Regarding Integrated Tax Rates

The Central Government, on the recommendation of the Council and in exercise of its authority under section 6(1) of the Integrated Goods and Services Tax Act, 2017, introduces amendments to Notification No. 3/2017-Integrated Tax (Rate) dated June 28, 2017.

The amendments include: Inserting a new item (6) in column (3) of the table against S. No. 1, which pertains to "Petroleum operations or coal bed methane operations undertaken under specified contracts under the Hydrocarbon Exploration Licensing Policy (HELP) or Open Acreage Licensing Policy (OALP)".

Adding a proviso to Condition No. 1 in the Annexure, under clause (e), allowing the recipient of outward supply or the transferee to pay tax at 18% on the transaction value of goods disposed of in non-serviceable form after mutilation. This is subject to the condition that the recipient or transferee produces a certificate from a duly authorized officer of the Directorate General of Hydrocarbons, Ministry of Petroleum and Natural Gas, confirming the non-serviceable nature of the goods and their mutilation before disposal.

These amendments shall be effective from October 1, 2019. Issued by Ruchi Bisht, Under Secretary to the Government of India, this amendment aims to streamline the taxation process for petroleum and coal bed methane operations under specified contracts and provide flexibility in taxation for goods disposed of in non-serviceable form.