Boost for OMCs: GST rate on transportation of petroleum, crude & its products cut

The good and services tax (GST) rate on transportation of petroleum, crude and its products has been cut to 12 percent from 18 percent earlier. In an interview to CNBC-TV18, MK Surana, CMD of Hindustan Petroleum Corporation (HPCL) spoke at length about the same.

We have three modes of transportation; coastal movement, pipeline movement and by rail or road. As far as rail and road movement is concerned, earlier also it was 5 percent, said Surana.

He further said that there are two types of coastal movements. One is a time charter vessel and second is voyage charter vessel; voyage charter was 5 percent but as far as the time charter vessel is concerned, it’s one of the two; in one case it was 5 percent and in another case, it was 18 percent. Therefore, it gets the benefit that it comes down from 18 percent to 5 percent.

Talking about borrowing programme, he said that the process is on but it’s for the government to decide.

Watch accompanying video for more details.

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