Clarification on Scope of Support Services for Exploration, Mining, and Drilling Activities
<p>The Ministry of Finance, through Circular No. 114/33/2019-GST, issued clarifications regarding the scope of services for the exploration, mining, or drilling of petroleum, crude, natural gas, or both. This update specifies the classification of technical and consulting services under the GST framework.</p><p>Key Highlights:</p><ul><li>Services related to exploration, mining, and drilling of petroleum and natural gas primarily fall under the GST classification heading 9986.</li><li>From October 1, 2019, an additional category (9983) was introduced for professional, technical, and business services directly associated with these activities.</li><li>Detailed explanatory notes are provided for services under headings 9983 (including geological and geophysical consulting) and 9986 (including support services to oil and gas extraction).</li><li>The clarified categories help determine the applicable GST rates based on specific service codes.</li></ul><p>The clarification ensures that service providers in this sector can better categorize their services, aligning with GST provisions to ensure proper taxation.</p><p><a href="https://cms.plasament.com/storage/chirag-singla/circular-cgst-114.pdf">circular-cgst-114</a><br> </p>