Important Keyword: Notification 05/2018 UTGST, Profit petroleum GST exemption India, UTGST oil exploration exemption, Production Sharing Contract GST India, Government share profit petroleum GST, UTGST petroleum notification 2018, Oil gas GST compliance India,
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[F. No.354/13/2018 -TRU]
Government of India
Ministry of Finance
(Department of Revenue)
New Delhi, the 25th January, 2018
Notification No. 05/2018 - Union Territory Tax (Rate): Seeks to exempt Central Government's share of Profit Petroleum from Union Territory Tax
GST: [TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
G.S.R (E).- In exercise of the powers conferred by sub-section (1) of section 8 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council,
hereby exempts the intra-State supply of services by way of grant of license or lease to explore or mine petroleum crude or natural gas or both, from so much of the Union territory tax as is leviable on the consideration paid to the Central Government in the form of Central Government’s share of profit petroleum as defined in the contract entered into by the Central Government in this behalf.
(Ruchi Bisht)
Under Secretary to the
Government of India
📚 Frequently Asked Questions (FAQs): Notification No. 05/2018 – Union Territory Tax (Rate)
Q1: What is Notification No. 05/2018 - Union Territory Tax (Rate)?
Answer:
It exempts UTGST on Central Government’s share of profit petroleum in oil & gas contracts 5.
Q2: Who benefits from this notification?
Answer:
Oil exploration companies operating under Production Sharing Contracts.
Q3: Is GST exempt on entire petroleum production?
Answer:
No. Only the Central Government’s share of profit petroleum is exempt.
Q4: Does this apply to royalty payments?
Answer:
No. Royalty has separate GST implications.
Q5: Is this applicable across India?
Answer:
This applies to Union Territories governed under UTGST Act.
Q6: Does this apply to State Government share?
Answer:
No. It specifically mentions Central Government share 5.
Q7: Is GST registration required for oil companies?
Answer:
Yes, if turnover exceeds threshold.
👉 Register your business easily:
https://finodha.in/online-gst-registration/
Q8: Should exempt amount be shown in GST return?
Answer:
Yes, it must be disclosed as exempt supply.
Q9: Does this impact Input Tax Credit (ITC)?
Answer:
Yes, proportionate ITC reversal may apply if engaged in exempt supplies.
Q10: Is this exemption automatic?
Answer:
Yes, provided conditions of contract are satisfied.
Q11: What documents are required?
Answer:
Production Sharing Contract
Revenue calculation statement
Payment details
Q12: Is this notification still valid?
Answer:
Valid unless specifically amended or withdrawn.
Q13: Does this affect Income Tax?
Answer:
No. Income tax treatment remains separate.
👉 Need ITR filing support?
https://finodha.in/income-tax-return-filing-online/
Q14: What happens if GST was wrongly paid?
Answer:
Refund may be claimed under GST refund provisions.
Q15: Where can I read the official notification?
Answer:
Refer to Gazette Notification No. 5/2018-UT Tax (Rate) dated 25 January 2018
Download PDF: Notification No. 05/2018 – Union Territory Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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