Oil India in mad scramble to hire GST advisor
Oil India has joined the fast growing list of companies hiring consultants to navigate the complex implications of India's Goods and Services Tax (GST) regime which kicks in from July 1.
GST is a proposed system of uniform indirect taxes on the manufacture and sale of goods designed to replace the onerous piecemeal approach to taxation taken at present by different states across the country. Already included under the proposal are LPG, naphtha, kerosene and fuel oil.
But oil minister Dharmendra Pradhan on March 27 renewed calls for crude oil, natural gas, petrol, High Speed Diesel (HSD) and Aviation Turbine Fuel (ATF) to be added to the list, while speaking at the PSC signing ceremony in Delhi for the Discovered Small Fields Round. On the same day (March 27) Oil India invited offers from consultants to help it implement GST.
An Oil India source expects big names like KPMG, Ernst & Young, PricewaterhouseCoopers and Deloitte to respond by the April 18 deadline. ONGC similarly on March 7 invited offers from consultants who can implement GST on its Information Consolidation for Efficiency online database.
ONGC issued the limited tender to Gurgaon-based SAP India, Ernst & Young, PricewaterhouseCoopers, KPMG and Delhi-based Accenture Solutions. GST consultants will help oil and gas companies understand the tax implications on oil, gas, LPG, kerosene, naphtha, C2-C3, HSD, petrol and ATF sale and production.