Government Exempts Central Tax for Petroleum Exploration Services

The Central Government, under section 11 of the CGST Act, 2017, exempts intra-state service supply. This exemption applies to services granting licenses or leases for exploring or mining petroleum crude or natural gas.

It covers the central tax on consideration paid to the Central Government as profit petroleum share.

The exemption aligns with public interest and Council recommendations, encouraging petroleum exploration activities. Issued by Ruchi Bisht, Under Secretary to the Government of India.

This move aims to facilitate the exploration of natural resources while ensuring fair taxation practices. The exemption benefits stakeholders involved in the petroleum exploration sector.