New GST reforms to bring down tax on coal, reduce power generation cost with removal of cess, says govt

The government on Thursday said that the GST reforms will bring down the overall tax on coal and reduce the cost of power generation.

Earlier, coal attracted 5 per cent GST along with a compensation cess of Rs 400 per tonne. The GST Council has recommended the removal of the GST Compensation cess and an increase in the GST rate on coal from 5 per cent to 18 per cent.