Indian Oil Corporation (IOC) is seeing the impact of Goods and Services Tax (GST). Nearly Rs. 4,200 crore as they would not be able to claim input tax credit (ITC) for automotive fuels that fall outside GST.

ITC allows an entity to reduce the tax on outputs by the same amount already paid as a tax on inputs.

An internal assessment made by the corporation shows that the company will suffer Rs 2,000 crore on revenue items and another Rs 2,200 crore on capital items because of denial of ITC for auto fuels.

In its bid to push renewable energy, nearly 7,000 retail fuel outlets of the corporation have turned to solar power and another 8,000 are likely to be converted this year.

Source: Times of India