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Sensing that the panic building up in the oil and gas sector from input tax credit impairment could act as a hindrance to further investments, the Petroleum and Natural Gas Ministry on Monday held a workshop to review the impact of the GST on the sector.
In a press statement, Minister of State (Independent Charge) for Petroleum and Natural Gas, Dharmendra Pradhan, assured the industry he will convey its concerns to the Finance Minister for an “agreeable resolution of the issues involved.” “It was brought to the notice of the Ministry that this exclusion will result in huge stranded taxes in the hands of the oil industry, due to non-availability of input tax credit towards non-GST products.”
While announcing the annual results, the IOC had said it was looking at a stranded input tax credit of ₹5,000 crore. ONGC officials too saw a ‘significant hit’ from the impairment. Oil India said it was looking at an impairment of ₹175 crore. The industry said the impairment was due to the non-inclusion of petroleum products under the GST.
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