Amendment in Tax Rates for Petroleum and Coal Bed Methane Operations
The Central Government, under the Union Territory Goods and Services Tax Act, introduces amendments to notification No. 3/2017.
A new item (6) is added, covering petroleum operations or coal bed methane operations under specific contracts.
The amendment allows for taxation at 9% on the transaction value if goods are disposed of in a non-serviceable form after mutilation.
Taxpayers opting for this must produce a certificate from a Directorate General of Hydrocarbons officer.
The amendment aims to streamline tax procedures for such operations under Hydrocarbon Exploration Licensing Policy (HELP) or Open Acreage Licensing Policy (OALP).
Effective from October 1, 2019, this amendment is overseen by Ruchi Bisht, Under Secretary to the Government of India.