Oil and gas sector expects 5% GST to favour hydrocarbon exploration

The move to fix the Goods and Service Tax (GST) rate at 5 per cent on certain goods used for oil exploration is expected to favour hydrocarbon exploration in the country. But the oil and gas exploration industry is awaiting further clarity on the list of goods that will be allowed this benefit.

“It is yet to be seen what are the items included in the list of specified goods. Presently, the reduced GST rate of 5 per cent is applicable only against Essentiality Certificate (EC) issued by the Directorate General of Hydrocarbons.