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GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 3/2017-Integrated Tax (Rate)
New Delhi, the 28th June, 2017
G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of
section 6 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), the
Central Government, being satisfied that it is necessary in the public interest
so to do, on the recommendations of the Council, hereby exempts inter-State
supplies of goods, the description of which is specified in column (3) of the
Table below read with relevant List appended hereto and falling under the tariff
item, sub-heading, heading or Chapter, as the case may be, as specified in the
corresponding entry in column (2) of the said Table, from so much of the
integrated tax leviable thereon under section 5 of the Integrated Good and
Services Tax Act, 2017 (13 of 2017) as is in excess of the amount calculated at
the rate specified in the corresponding entry in column (4) of the said Table
and subject to the relevant conditions annexed to this notification, as
specified in the corresponding entry in column (5) of the Table aforesaid.
TABLE
| S. No |
Chapter / Heading / Subheading / Tariff item |
Description of Goods |
Rate |
Condition No. |
| (1) |
(2) |
(3) |
(4) |
(5) |
| 1 |
Any Chapter |
Goods specified in the List annexed to this Table required in
connection with: (1) Petroleum operations undertaken under petroleum
exploration licenses or mining leases, granted by the Government of
India or any State Government to the Oil and Natural Gas Corporation or
Oil India Limited on nomination basis, or (2) Petroleum operations
undertaken under specified contracts, or (3) Petroleum operations
undertaken under specified contracts under the New Exploration Licensing
Policy, or (4) Petroleum operations undertaken under specified contracts
under the Marginal Field Policy (MFP), or (5) Coal bed methane
operations undertaken under specified contracts under the Coal Bed
Methane Policy |
5% |
1 |
ANNEXURE
| Condition No. |
Conditions |
| 1. |
If,- (a) the goods are supplied to,- (i) the Oil and Natural Gas
Corporation or Oil India Limited (hereinafter referred to as the
“licensee”) or a sub-contractor of the licensee and in each case in
connection with petroleum operations to be undertaken under petroleum
exploration licenses or mining leases, as the case may be, granted by
the Government of India or any State Government on nomination basis; or
(ii) an Indian Company or Companies, a Foreign Company or Companies, or
a consortium of an Indian Company or Companies and a Foreign Company or
Companies (hereinafter referred to as the “contractor”) or a
sub-contractor of the contractor and in each case in connection with
petroleum operations to be undertaken under a contract with the
Government of India; or (iii) an Indian Company or Companies, a Foreign
Company or Companies, or a consortium of an Indian Company or Companies
and a Foreign Company or Companies (hereinafter referred to as the
“contractor”) or a sub-contractor of such Company or Companies or such
consortium and in each case in connection with petroleum operations or
coal bed methane operations, as the case may be, to be undertaken under
a contract signed with the Government of India, on or after the 1st day
of April,1998, under the New Exploration Licensing Policy, or on or
after the 1st day of April 2001 in terms of the Coal Bed Methane Policy,
or on or after the 14th day of October, 2015 in terms of the Marginal
Field Policy, as the case may be; (b) where the recipient of outward
supply of goods,- (i) is a licensee, he produces to the Deputy
Commissioner of Central tax or the Assistant Commissioner of Central tax
or the Deputy Commissioner of State tax or the Assistant Commissioner of
State tax, as the case may be, having jurisdiction over the supplier of
goods, at the time of outward supply of goods, the following, namely, a
certificate from a duly authorised officer of the Directorate General of
Hydro Carbons in the Ministry of Petroleum and Natural Gas, Government
of India, to the effect that the goods are required for petroleum
operations referred to in sub-clause (i) of clause (a); (ii) is a
contractor, he produces to the Deputy Commissioner of Central tax or the
Assistant Commissioner of Central tax or the Deputy Commissioner of
State tax or the Assistant Commissioner of State tax, as the case may
be, having jurisdiction over the supplier of goods, at the time of
outward supply of goods, a certificate from a duly authorised officer of
the Directorate General of Hydro Carbons in the Ministry of Petroleum
and Natural Gas, Government of India, to the effect that the goods are
required for (A) petroleum operations referred to in sub-clause (ii) of
clause (a) under the contract referred to in that sub-clause, or (B)
petroleum operations or coal bed methane operations referred to in
sub-clause (iii) of clause (a), as the case may be, under a contract
signed under the New Exploration Licensing Policy or the Coal Bed
Methane Policy or the Marginal Field Policy, as the case may be; (c)
where the recipient of outward supply of goods is a sub-contractor, he
produces to the Deputy Commissioner of Central tax or the Assistant
Commissioner of Central tax or the Deputy Commissioner of State tax or
the Assistant Commissioner of State tax, as the case may be, having
jurisdiction over the supplier of goods, at the time of outward supply,
the following, namely :- (i) a certificate from a duly authorised
officer of the Directorate General of Hydro Carbons in the Ministry of
Petroleum and Natural Gas, Government of India, to the effect that the
goods are required for :- (A) petroleum operations referred to in
sub-clause (i) of clause (a) under the licenses or mining leases, as the
case may be, referred to in that sub-clause and containing the name of
such sub-contractor, or (B) petroleum operations referred to in
sub-clause (ii) of clause (a) under the contract referred to in that
sub-clause and containing, the name of such sub- contractor, or (C)
petroleum operations or coal bed methane operations, as the case may be,
referred to in sub- clause (iii) of clause (a) under a contract signed
under the New Exploration Licensing Policy or the Coal Bed Methane
Policy or the Marginal Field Policy, as the case may be, and containing
the name of such sub-contractor; (ii) an affidavit to the effect that
such sub-contractor is a bonafide subcontractor of the licensee or
lessee or contractor, as the case may be; (iii) an undertaking from such
licensee or lessee or contractor, as the case may be, binding him to pay
any tax, fine or penalty that may become payable, if any of the
conditions of this entry are not complied with by such sub-contractor or
licensee or lessee or contractor, as the case may be; (d) where the
goods so supplied to the licensee or a sub-contractor of the licensee,
or the contractor or a sub-contractor of the contractor are sought to be
transferred to another sub-contractor of the licensee or another
licensee or a sub- contractor of such licensee, or another subcontractor
of the contractor or another contractor or a subcontractor of such
contractor (hereinafter referred to as the “transferee”), such
transferee produces to the Deputy Commissioner of Central tax or the
Assistant Commissioner of Central tax or the Deputy Commissioner of
State tax or the Assistant Commissioner of State tax, as the case may
be, having jurisdiction over such transferee, at the time of such
transfer, the following, namely:-
(i) a certificate from a duly
authorised officer of the Directorate General of Hydro Carbons in the
Ministry of Petroleum and Natural Gas, Government of India, to the
effect that the said goods may be transferred in the name of the
transferee and that the said goods are required for petroleum operations
to be undertaken under :- (A) petroleum exploration or mining leases
referred to in sub-clause (i) of clause (a), or (B) petroleum operations
to be undertaken under a contract referred to in sub-clause (ii) of
clause (a), or (C) petroleum operations or coal bed methane operations,
as the case may be, to be undertaken under a contract referred to in
sub-clause (iii) of clause (a) (ii) undertaking from the transferee to
comply with all the conditions of this entry, including that he shall
pay tax, fine or penalty that may become payable, if any of the
conditions of this entry are not complied with by himself, where he is
the licensee/ contractor or by the licensee/ contractor of the
transferee where such transferee is a sub-contractor. (iii) a
certificate,- (A) in the case of a petroleum exploration license or
mining lease, as the case may be, granted by the Government of India or
any State Government on nomination basis, that no foreign exchange
remittance is made for the transfer of such goods undertaken by the
transferee on behalf of the licensee or lessee, as the case may be; (B)
in the case of a contract entered into by the Government of India and a
Foreign Company or Companies or, the Government of India and a
consortium of an Indian Company or Companies and a Foreign Company or
Companies, that no foreign exchange remittance is made for the transfer
of such goods undertaken by the transferee on behalf of the Foreign
Company or Companies, as the case may be: Provided that nothing
contained in this sub-clause shall apply if such transferee is an Indian
Company or Companies. (e) where the goods so supplied are sought to be
disposed of, the recipient of outward supply or the transferee, as the
case may be, may pay the tax which would have been payable but for the
exemption contained herein, on the depreciated value of such goods
subject to the condition that the recipient of outward supply or the
transferee, as the case may be, produces before the Deputy Commissioner
of Central tax or the Assistant Commissioner of Central tax or the
Deputy Commissioner of State tax or the Assistant Commissioner of State
tax, as the case may be, having jurisdiction over the supplier of goods,
a certificate from a duly authorised officer of the Directorate General
of Hydro Carbons in the Ministry of Petroleum and Natural Gas,
Government of India, to the effect that the said goods are no longer
required for the petroleum operations or coal bed methane operations,
and the depreciated value of the goods shall be equal to the original
value of the goods at the time of import reduced by the percentage
points calculated by straight line method as specified below for each
quarter of a year or part thereof from the date of clearance of the
goods, namely:- (i) for each quarter in the first year at the rate of 4
per cent.; (ii) for each quarter in the second year at the rate of 3 per
cent.; (iii) for each quarter in the third year at the rate of 2.5 per
cent.; and (iv) for each quarter in the fourth year and subsequent years
at the rate of 2 per cent., subject to the maximum of 70 per cent. |
List
[See S.No.1 of the Table]
(1) Land Seismic Survey Equipment and accessories, requisite vehicles
including those for
carrying the equipment, seismic survey vessels, global
positioning system and
accessories, and other materials required for seismic
work or other types of
Geophysical and Geochemical surveys for onshore and
offshore activities.
(2) All types of drilling rigs, jackup rigs, submersible
rigs, semi-submersible rigs, drill
ships, drilling barges, shot-hole drilling
rigs, mobile rigs, workover rigs consisting
of various equipment and other
drilling equipment required for drilling operations,
snubbing units,
hydraulic workover units, self-elevating workover platforms,
Remote Operated
Vessel (ROV).
(3) Helicopters including assemblies/parts.
(4) All types of
marine vessels to support petroleum operations including work
boats, barges,
crew boats, tugs, anchor handling vessels, lay barges and supply boats,
marine ship equipment including water maker, DP system and Diving system.
(5)
All types of equipment/ units for specialised services like diving, cementing,
logging, casing repair, production testing, simulation and mud services, oil
field
related lab equipment, reservoir engineering, geological equipment,
directional drilling, stimulation, Coil Tubing units, Drill Stem Testing (DST),
data acquisition and processing, solids control, fishing (as related to
downhole retrieval in oil field operations or coal bed methane operations), well
control, blowout prevention(BOP), pipe inspection including Non Destructive
Testing, coring, gravel pack, well completion and workover for oil/gas/CBM
wells including wireline and downhole equipment.
(6) All types of casing
pipes, drill pipes, production tubing, pup joints, connections,
coupling,
kelly, cross overs and swages, Drive Pipes.
(7) All types of drilling bits,
including nozzles, breakers and related tools.
(8) All types of oil field
chemicals or coal bed methane chemicals including
synthetic products used in
petroleum or coal bed methane operations, oil well cement
and cement
additives, required for drilling, production and transportation of oil or gas.
(9) Process, production and well platforms/ installation for oil, gas or CBM and
water injection including items forming part of the platforms/ installation and
equipment required like process equipment, turbines, pumps, generators,
compressors, primemovers, water makers, filters and filtering
equipment,
telemetery, telecommunication, tele-control and other material required
for
platforms/ installations.
(10) Line pipes for flow lines and trunk pipelines
including weight-coating and wrapping.
(11) Derrick barges, Mobile and
stationary cranes, trenchers, pipelay barges, cargo
barges and the like
required in the construction/ installation of platforms and
laying of
pipelines.
6
(12) Single buoy mooring systems, mooring ropes, fittings
like chains, shackles,
couplings marine hoses and oil tankers to be used for
oil storage and connected
equipment, Tanks used for storage of oil,
condensate, coal bed methane, water,
mud, chemicals and related materials.
(13) All types of fully equipped vessels and other units /equipment required for
pollution control, fire prevention, fire fighting, safety items like Survival
Craft,
Life Raft, fire and gas detection equipment, including H2S monitoring
equipment.
(14) Mobile and skid mounted pipe laying, pipe testing and pipe
inspection equipment.
(15) All types of valves including high pressure
valves.
(16) Communication equipment required for petroleum or coal bed
methane operations
including synthesized VHF Aero and VHF multi channel sets/
VHF marine multi
channel sets.
(17) Non-directional radio beacons,
intrinsically safe walkie-talkies, directional finders,
EPIRV, electronic
individual security devices including electronic access control
system.
(18) Specialized antenna system, simplex telex over radio terminals, channel
micro
wave systems, test and measurement equipment.
(19) X-band radar
transponders, area surveillance system.
(20) Common depth point (CDP) cable,
logging cable, connectors, geo-phone strings,
perforation equipment and
explosives
(21) Wellhead and Christmas trees, including valves, chokes, heads
spools, hangers
and actuators, flexible connections like chicksons and high
pressure hoses, shut
down panels.
(22) Cathodic Protection Systems
including anodes.
(23) Technical drawings, maps, literature, data tapes,
Operational and Maintenance Manuals
required for petroleum or coal bed
methane operations.
(24) Sub-assemblies, tools, accessories, stores, spares,
materials, supplies, consumables for
running, repairing or maintenance of the
goods specified in this List.
Explanation. –
(1) In this notification,
“tariff item”, “sub-heading” “heading” and “Chapter” shall mean
respectively
a tariff item, heading, sub-heading and Chapter as specified in the First
Schedule
to the Customs Tariff Act, 1975 (51 of 1975).
(2) The rules for
the interpretation of the First Schedule to the said Customs Tariff Act,
1975, including the Section and Chapter Notes and the General Explanatory Notes
of the
First Schedule shall, so far as may be, apply to the interpretation of
this notification.
2. This notification shall come into force with effect
from the 1st day of July, 2017.
(Mohit Tewari)
Under Secretary to the Government of India
[F.
No.354/117/2017-TRU]
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