GST reform in Coal Sector – A Transformative Step Towards AatmNirbharta in Coal

The Ministry of Coal has acknowledged the significant tax changes for the sector following the 56th GST Council meeting, viewing them as a balanced move toward AatmNirbharta in coal. The reform involves two main components: the removal of the ₹400 per tonne GST Compensation Cess and an increase in the GST rate on coal from 5% to 18%. The overall effect is a reduction in the tax burden for consumers, with coal grades seeing decreases ranging up to ₹329.61 per tonne, translating to an average cut of 17−18 paise per kWh in the cost of power generation. This rationalization aligns the tax in...