Budget 2024: Oil and gas industry awaits schemes to boost production, inclusion in GST
The oil and gas industry is expecting policy announcements and investment schemes aimed at increasing domestic production and bringing required changes in the tax structure in the upcoming Union Budget, set to be announced on July 23.
The industry remains hopeful for any comments by the finance minister on the long-standing demand for inclusion of petroleum products under the Goods and Services Tax (GST) regime.
“Addressing the tax structure in this sector is imperative as natural gas, crude oil and other petroleum products remain outside the GST ambit, leading to an increasing demand for their inclusion,” said Pankaj Kalra, CEO of Essar Oil & Gas Exploration & Production Ltd (EOGEPL).
Despite the industry’s demand, petroleum products have not been included under GST, mainly due to opposition from state governments. To be sure, any decision on GST is taken by the GST Council, a joint forum of the Centre and the states. But a recommendation in the Budget by the Finance Minister, who heads the Council, can be a big positive.
