The good and services tax (GST) rate on transportation of petroleum, crude and its products has been cut to 12 percent from 18 percent earlier. In an interview to CNBC-TV18, MK Surana, CMD of Hindustan Petroleum Corporation (HPCL) spoke at length about the same.
We have three modes of transportation; coastal movement, pipeline movement and by rail or road. As far as rail and road movement is concerned, earlier also it was 5 percent, said Surana.
He further said that there are two types of coastal movements. One is a time charter vessel and second is voyage charter vessel; voyage charter was 5 percent but as far as the time charter vessel is concerned, it's one of the two; in one case it was 5 percent and in another case, it was 18 percent. Therefore, it gets the benefit that it comes down from 18 percent to 5 percent.
Talking about borrowing programme, he said that the process is on but it's for the government to decide.
Watch accompanying video for more details.
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