At the onset Mr. Rajiv Bahl, Director (Finance, Taxation & Legal), FIPI welcomed the guests and expressed his views on the Union Budget 2018-19. In his address Mr. Bahl highlighted the urgent need for fiscal incentives to give the much needed investment thrust to the oil and gas sector in India. He emphasized that the industry was passing through a critical phase with higher challenges in committing large investments and stressed that Govt should come forward to provide a conducive fiscal regime which will go a long way in promoting investments in this sector. He also highlighted the pressing need to bring the petroleum products under the fold of GST as the industry was burdened with additional costs due to locking up of input credits.

Mr. Hemal Zobalia, Partner Deloitte, commenced with the Budget Analysis session and invited Mr. Gokul Choudhry, Partner, Deloitte, Haskins & Sells LLP to express his views on the policy side of the Budget. Mr. Gokul Choudhry emphasized on how the oil and gas industry was one of the largest contributors to the country’s ex-exchequer and highlighted the dominant position of the hydrocarbon industry in India’s economy. He also suggested that there was a need to bring in fiscal stability to promote investments in this sector and to avoid litigations

While Mr. Hemal Zobalia, Partner Deloitte discussed on the direct tax aspects of the budget and provided clarification to the latest developments in this arena, Mr. Anoop Kalavath, Senior Director, Deloitte, expressed his views on the indirect tax aspects of the budget. As this was the first budget after the introduction of GST from July last year, there was not much to discuss on the indirect taxes other than Customs Duty and the procedural amendments proposed.

A panel discussion constituting Shri A.K. Sharma, Director (Finance), IOCL, Shri R.K. Garg, former Director (Finance), Petronet LNG, Shri Kartikeya Dube, Tax Director, BP and Shri Navin Jain, Head (Taxation), CAIRN was held and moderated by Mr. Debasish Mishra, Partner, Deloitte. The Union Budget 2018-19 was discussed at length and future steps to taken up by FIPI and the Oil Industry were deliberated upon. The panel discussion was primarily focused on GST and highlighted the urgent need to bring petroleum products under the fold of GST. The panel mooted on the question of bringing natural gas in the first instance under GST and felt that while this would be a welcome move, even ATF could be considered alongwith Natural gas as the impact would be relatively small and states could be easily persuaded for this. The panel also felt that Ministry of Petroleum & Natural Gas who is fully seized of the matter and is supporting the case of the oil industry should be persuaded to take up the case of the industry with GST Council.

Dr. R.K. Malhotra, Director General, FIPI, in his concluding remarks stated that FIPI has put in great deal of efforts in taking up the case of the industry with regard to GST with the Govt at various levels and has succeeded in bringing the Ministry of Petroleum as well as Ministry of Finance fully on board as both the ministries were supporting the case of industry for inclusion of petroleum products under the fold of GST and were trying to convince the states to do this at the soonest. He also mentioned that senior industry leaders have also met individual states and desired that this was the need of the hour and assured full support from FIPI in this regard. He thanked all the industry participants and expressed his gratitude in making the event a productive and successful one.

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