Ministry of Finance, through Notification No. 39/2025-Customs dated 17th September 2025, amends Notification No. 50/2017-Customs to revise the Integrated Goods and Services Tax (IGST) applicable on certain imported goods used in petroleum and coal bed methane operations. Effective 22nd September 2025, the IGST rate for goods listed under S. No. 404, which are required for petroleum operations under exploration licenses, mining leases, contracts under the New Exploration Licensing Policy, Marginal Field Policy, or coal bed methane operations, is increased from 5% to 18%. The notification specifies detailed conditions for importers, including licensees, contractors, and subcontractors, requiring them to produce certificates from the Directorate General of Hydro Carbons (DGH) confirming the goods’ necessity for petroleum operations. Importers must also ensure that no foreign exchange remittance is involved for imports undertaken by foreign companies or consortia, except where the transferee is an Indian company. The amendments also regulate the transfer and disposal of imported goods, requiring certifications from DGH for transfers between licensees, contractors, or subcontractors and stipulating payment of customs duty on depreciated value if goods are no longer required for operations. The depreciation for duty calculation follows a straight-line method at quarterly rates ranging from 4% in the first year to 2% from the fourth year onwards, capped at 70% of the original value. These changes aim to align IGST rates with current fiscal policies while maintaining regulatory oversight on imports used in petroleum and coal bed methane sectors.
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 39/2025 – Customs | Dated: 17th September, 2025
G.S.R. 643(E).—In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) and sub-section (12) of section 3 of Customs Tariff Act, 1975 (51 of 1975), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 50/2017-Customs, dated the 30th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 785(E), dated the 30th June, 2017, namely:-
In the said notification, in the Table, against S. No. 404, for the entry in column (5), the entry “18%” shall be substituted.
2. This notification shall come into force on the 22nd day of September, 2025.
[F. No. CBIC-190341/188/2025-TRU]
DHEERAJ SHARMA, Under Secy.
Note: The principal notification No. 50/2017-Customs, dated the 30th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i), vide number G.S.R. 785(E), dated the 30th June, 2017 and was last amended vide notification No. 31/2025-Customs, dated the 30th May, 2025, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 355(E), dated the 30th May, 2025.
