Asia/Pacific News
New 18% Tax to Apply to India Bunker Sales From July 1
A major tax reform being introduced in India is set to apply to bunker sales in the country, a source from a local supplier has explained to Ship & Bunker.
The rollout of the new Goods and Service Tax (GST) will take effect from July 1, 2017.
"This tax reform will have impact on all sectors including bonded and duty paid bunkering at India ports. It is learnt that bonded bunker fuel will fall in its ambit and would attract 18% GST, until further orders from Government of India," the source said.
"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."
The new nationwide tax will replace several regional taxes imposed at central and state government level.
