MGO Charges Not Taxable: No GST on Liquidated Damages for Short-Lifting Gas

By CA Sandeep Kanoi Goods and Services Tax Judiciary October 15, 2025

Case Name: In re Oil and Natural Gas Corporation Limited (GST AAR Tamilnadu)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: AAR Tamilnadu, Advance Rulings

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In re Oil and Natural Gas Corporation Limited (GST AAR Tamilnadu) The Authority for Advance Ruling (AAR) in Tamil Nadu addressed an application filed by Oil and Natural Gas Corporation Limited (ONGC) regarding the Goods and Services Tax (GST) implications on Minimum Guaranteed Off-take (MGO) Charges. ONGC, a major public sector enterprise, supplies crude oil and natural gas—products presently outside the scope of GST, being subject to pre-GST levies like VAT/CST under Section 9(2) of the CGST Act. Factual Background and Applicant’s Contention ONGC had entered into a Pan India Gas Sales a...

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