GST on oil and gas exploration hiked to 18%

Oil and gas exploration and production will cost more after the GST Council approved raising the tax on services rendered for the same to 18 per cent from the current 12 per cent.

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The new tax rates will be effective from September 22.

Services relating to exploration, mining or drilling of petroleum crude or natural gas have been increased to 18 per cent with input tax credit (ITC), according to an official note.

The same has also been done for support services to exploration, mining or drilling of petroleum crude or natural gas or both.