<h1>GST Council Proposes New Tax Rates for Petroleum Sector: 12% on Offshore Contracts, 5% on Bunker Fuel.</h1> The GST Council, in its 22nd meeting, proposed a new GST rate structure for the petroleum and oil sector to minimize tax cascading and encourage investment. Offshore works contract services related to oil and gas exploration beyond 12 nautical miles will incur a 12% GST. Natural gas transportation via pipeline will have a 5% GST without input tax credits or 12% with full credits. Import of rigs and ancillary goods under lease will be IGST-exempt, contingent on certain conditions. The GST on bunker fuel is reduced to 5% for both foreign and coastal vessels. Notifications to implement these changes are forthcoming.