Clarification regarding applicability of GST on the petroleum gases retained for the manufacture of petrochemical and chemical products.
12/2018 Dated:- 13-8-2018 West Bengal SGST
GST – States
GOVERNMENT OF WEST BENGAL
DIRECTORATE OF COMMERCIAL TAXES
14, BELIAGHATA ROAD, KOLKATA-700015
TRADE CIRCULAR No. 12/2018
DATED: 13.08.2018
Subject: Clarification regarding applicability of GST on the petroleum gases retained for the manufacture of petrochemical and chemical products.
References have been received regarding the applicability of GST on the petroleum gases retained for the manufacture of petrochemical and chemical products during the course of continuous supply such as Methyl Ethyl Ketone (MEK) feedstock, petroleum gases e
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supply), and the remaining quantity is returned to the oil refineries. In this regard, an issue has arisen as to whether in this transaction GST would be leviable on the whole quantity of the principal raw materials supplied by the oil refinery or on the net quantity retained by the manufacturers of petrochemical and chemical products.
3. The GST Council in its 28th meeting held on 21.7.2018 discussed this issue and recommended for issuance of a general clarification for petroleum sector that in such transactions, GST will be payable by the refinery on the value of net quantity of petroleum gas retained for the manufacture of petrochemical and chemical products.
4. Accordingly, it is hereby clarified that, in the aforesaid cases, GST will
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