India is poised to enter into major tax reform since independence with rolling out of Goods and Service Tax with effect from 1 July 2017. This tax reform will have impact on all sectors including bonded and duty paid bunkering at India ports. It is learnt that that bonded bunker fuel will fall in its ambit and would attract 18% GST, till further orders from Government of India.
From Industry sources, we have learnt that hectic discussions are going on amongst National Oil marketing companies of India, private players and GST Governing Council to reduce the GST, but till now the issue remains unresolved and it looks like that all supplies made after midnight of 30th June 2017, would attract 18% GST. Some experts from the industry believe that this development will adversly effect the bunker industry and application of 18% GST as announcement by the Government, is likely to ruin the bunker industry in India as the price will be much higher compared to International neighbouring ports such as Colombo, Fujairah and Singapore.
Source: TST Newsdesk / In Consultation with experts of bunker industry in IndiaPrevious Next