GST Exemption for Goods in Petroleum and Mining Operations

Central Government exempts intra-state supply of goods used in petroleum and mining operations under the CGST Act, 2017.

Council recommendations drive this exemption, aimed at supporting crucial energy and resource sectors. Goods listed in the table, including seismic survey equipment, drilling rigs, and oil field chemicals, qualify for the exemption.

Tax rate for these goods is capped at 2.5%, subject to specified conditions. Annexure outlines conditions, including certification requirements from Directorate General of Hydro Carbons.

Effective from July 1, 2017, this measure aims to reduce tax burden on essential equipment for petroleum and mining activities. It promotes efficiency and investment in vital sectors for India's economic growth.