Mr. Rajiv Bahl, Director (Finance, Taxation & Legal), PetroFed greeting Mr. Upendra Gupta, Commissioner VAT, CBEC.
A section of the participants.
Prof. Sacchidananda Mukherjee, National Institute of Public Finance and Policy making his presentation.
Session in progress.
Mr. Santosh Dalvi, Partner, KPMG Advisory Services Private Ltd. making his presentation.
Dr. R.K. Malhotra, Director General, PetroFed addressing participants.
Mr. Anish De, Partner, KPMG Advisory Services Pvt. Ltd welcoming participants.
PetroFed in association with its knowledge partner KPMG organised a Round Table discussion of senior industry leaders on November 19, 2015 in New Delhi on the impact of introduction of GST in its present form. It may be recalled that the Lok Sabha had passed the Goods and Services Tax (GST) Constitutional Amendment Bill in May this year. As per the proposed amendments, petroleum products shall not be included or subject to levy of GST until advised by GST council. The petroleum & natural gas sector, including its end-consumer segments is likely to be severely impacted due to its exclusion from the GST regime. The exclusion would result in breakage of credit set-offs across the value chain for the industry. Further, the industry would have to operate simultaneously in VAT/ CST and GST regime as part of their input whereas output goods/ services would be subject to GST. This is likely to increase the compliance effort and cost for the industry multifold.
Carrying on with its persistent efforts, PetroFed in association with KPMG organised this Round Table inviting key stakeholders to discuss the critical issues involved and the way forward to address them. The group deliberated on various possible solutions to address the key issues emerging out of the hybrid regime under which the Oil & Gas Industry might have to operate given the current uncertain format of GST. The discussions centered around the key issues affecting the oil and gas sector under the proposed GST regime focusing on the different business scenarios and the potential options for inclusion of petroleum & petroleum products.
One of the highlights of the Round Table was the presence of Mr. Upendra Gupta, Commissioner VAT, CBEC who patiently heard the industry’s concerns. An eloquent presentation was made by Mr. Santosh Dalvi, Partner KPMG raising some of the vital issues stemming from the exclusion of petroleum products from GST followed by a very lucid presentation by Prof. Sacchidananda Mukherjee, Associate Professor, National Institute of Public Finance and Policy on Revenue Neutrality and the concerns of States with regard to GST. The Round Table invited intense participation from senior colleagues from all industry segments.