Wednesday, October 19, 2016

No tax on LPG sale outside Gujarat: High Court

Gujarat high court on Wednesday ruled in favour of Reliance Industries Ltdholding that the company will not have to shell out Central Sales Tax on the LPG it produces in Jamnagar refinery when it sells it outside Gujarat. This could lead to profit of hundreds of crores for oil and gas companies.

Earlier, there was an exemption in payment of duty only on sale of LPG within Gujarat, and a company had to shell out tax upon sale outside Gujarat. This was the arrangement for last one year after a division bench of the high court held so in response to a petition filed by Oil and Natural Gas Commission (ONGC). The PSU was thus exempted from paying tax upon LPG sale in Gujarat, but not outside the state.

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