GST on capital goods erodes fiscal stability in new oilfield law: Ficci to Oil Minister Puri

Ficci said the sector was not asking for fresh incentives but urged govt to maintain contractual terms already agreed upon

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The Federation of Indian Chambers of Commerce and Industry (Ficci) has raised concerns that the recent hike in GST on capital goods for the oil, gas, and coal bed methane (CBM) sectors undermines the stability promised under the newly approved Oilfields (Regulation and Development) Amendment Act, 2025.

In a letter to Petroleum and Natural Gas Minister Hardeep Singh Puri on September 25— the second this month—Ficci said raising GST on capital goods for petroleum, natural gas) and CBM from 12 per cent to 18 per cent places additional strain on an industry already disadvantaged by the exclusion of natural gas from GST.