{"id":5998,"date":"2025-09-19T17:08:24","date_gmt":"2025-09-19T11:38:24","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=5998"},"modified":"2025-09-24T16:51:09","modified_gmt":"2025-09-24T11:21:09","slug":"cbic-revises-igst-on-petroleum-exploration-goods-imports-to-18","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/cbic-revises-igst-on-petroleum-exploration-goods-imports-to-18","title":{"rendered":"CBIC Revises IGST on Petroleum Exploration Goods Imports to 18%"},"content":{"rendered":"<p><span class=\"TextRun SCXW152911557 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW152911557 BCX0\"><a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/customs\/104010000000112934\/cbic-revises-igst-rates-on-import-of-petroleum-exploration-goods-from-12-to-18-notification\">Notification No. 36\/2025- Customs,<\/a> Dated 17-09-2025<\/span><\/span><span class=\"EOP SCXW152911557 BCX0\" data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:280,&quot;335572071&quot;:0,&quot;335572072&quot;:0,&quot;335572073&quot;:0,&quot;335572075&quot;:0,&quot;335572076&quot;:0,&quot;335572077&quot;:0,&quot;335572079&quot;:0,&quot;335572080&quot;:0,&quot;335572081&quot;:0,&quot;335572083&quot;:0,&quot;335572084&quot;:0,&quot;335572085&quot;:0,&quot;335572087&quot;:0,&quot;335572088&quot;:0,&quot;335572089&quot;:0,&quot;469789798&quot;:&quot;nil&quot;,&quot;469789802&quot;:&quot;nil&quot;,&quot;469789806&quot;:&quot;nil&quot;,&quot;469789810&quot;:&quot;nil&quot;,&quot;469789814&quot;:&quot;nil&quot;}\">\u00a0<\/span><\/p>\n<h2>1. Introduction<\/h2>\n<p>The Central Board of Indirect Taxes and Customs (CBIC), through an amendment to Notification No. 50\/2017-Customs, has revised the Integrated Goods and Services Tax (IGST) rate on imports of specified petroleum exploration goods. The revised rate will come into effect from 22nd September 2025. This measure is expected to align tax structures with the broader policy framework for petroleum operations and ensure consistency in tax administration.<\/p>\n<h2>2. Revision of IGST Rate<\/h2>\n<p>Under the amendment, the IGST rate on imports of certain petroleum exploration and production goods has been increased from 12% to 18%. The upward revision reflects the government\u2019s move to rationalise tax rates across different categories of goods and services while addressing revenue considerations.<\/p>\n<h2>3. Coverage of Goods<\/h2>\n<p>The revised rate applies to a wide range of goods essential for petroleum and gas exploration. These include casing pipes, drilling bits, oil and gas rigs, software, spares, and other related equipment. By covering critical exploration inputs, the notification ensures uniformity in tax treatment across various imported goods used in petroleum operations.<\/p>\n<h2>4. Applicability to Petroleum and CBM Projects<\/h2>\n<p>The notification specifies that the revised IGST rate will be applicable to imports made by licensees, lessees, contractors, or sub-contractors engaged in petroleum operations and coal bed methane (CBM) projects. This ensures that all entities participating in these projects are subject to a consistent tax regime, thereby minimising ambiguities in implementation.<\/p>\n<h2>5. Conclusion<\/h2>\n<p>The CBIC\u2019s decision to revise the IGST rate on petroleum exploration goods marks a significant change for the oil and gas sector. While the higher rate increases the tax liability on imports, it also simplifies the tax structure by aligning petroleum-related imports with the standard GST rate of 18%. This step underscores the government\u2019s approach of balancing revenue generation with regulatory clarity.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Notification No. 36\/2025- Customs, Dated 17-09-2025\u00a0 1. Introduction The Central Board of&hellip;<\/p>\n","protected":false},"author":16,"featured_media":6014,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38,178,47],"tags":[],"class_list":["post-5998","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-customs","category-customs-news","category-customs-statutory-scope"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>CBIC Revises IGST on Petroleum Exploration Goods Imports to 18%<\/title>\n<meta name=\"description\" content=\"CBIC amends Notification No. 50\/2017-Customs, revising IGST on imports of petroleum exploration goods from 12% to 18% effective 22 September 2025.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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