India Inc faces potential changes as GST Council to discuss oil & gas taxation and data sharing
The upcoming 54th GST Council meeting could yield a significant number of decisions impacting various sectors, including India Inc, the oil & gas sector, and foreign shipping lines. According to sources, the GST Council is likely to deliberate on the taxation of oil & gas exploration.
"The Fitment Committee is likely to propose issuing clarification on the levying of GST on participating interest in oil & gas exploration contracts," sources said.
They added, "The Fitment Committee, during its meetings, deliberated that any sub-contracting or passing on of the exploration contract to a new entity is liable under GST."
The sources further added, "While proposing this, the Fitment Committee took the view that any subcontracting is also a supply of services and thus should attract GST. Not just this, the Fitment Committee also believes that passing on a contract is akin to selling assets, which attracts LTCG under Income Tax rules, and a similar treatment should apply under the GST regime."
