Oil companies will suffer a massive hit of Rs. 25,000 crore as a result of GST rollout since most of the oil firms output is outside GST ambit. Crude oil, natural gas, petrol, diesel and jet fuel have been kept out of GST net to let the states keep revenues generated from taxes on oil sales. However, other oil products such as kerosene, liquefied petroleum gas (LPG) and naphtha have been included under GST regime.
This means that oil firms such as Oil and Natural Gas Corporation (ONGC), Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum would all have to comply with the old and new tax regimes.