India, Sept. 11 -- The Government of India issued the following news release:
The 56th meeting of the GST Council held in New Delhi has brought significant changes to the taxation structure of the Coal sector. Earlier, Coal attracted 5% GST along with a compensation cess of Rs. 400 per ton. The Council has now recommended the removal of GST Compensation cess and an increase in the GST rate on coal from 5% to 18%.
The new reforms reduce the overall tax on coal grades G6 to G17, which is in the range of Rs.13.40 per ton to Rs.329.61 per ton. The average reduction for power sector is Rs.260 per ton, which will reduce the cost of generation by 17 to 18 paise /kWh.
The reforms will also help in rationalization of tax burden on coal vis-a-vis ...