Post GST reduction of incidence of Tax on Coal Consumers

In pre GST regime there was Excise Duty on Coal @ 6% , Stowing Excise Duty @ ₹ 10 per tonne of coal production, VAT@ 5% (on intra-state sale), Central Sales Tax @ 2% (on inter-state sale, on submission of Form C) . Post implementation of GST all the above mentioned taxes and levies have been subsumed and GST @ 5% is being charged to consumers. This was stated by Shri Piyush Goyal, Minister of State (IC) for Power, Coal & New and Renewable Energy and Mines in a written reply to a question in the Lok  Sabha today.

The Minister further stated that Clean Environment Cess @ ₹ 400 per tonne was payable prior to GST which has been repealed and a new levy namely GST Compensation Cess has been introduced @ 400 per tonne of coal. However, previously VAT/CST was charged on Clean Environment Cess but no such taxes are levied on GST Compensation Cess.

Following Steps have been taken by Ministry of Coal to facilitate the stakeholders in the implementation of GST:-

i.       A facilitation cell, headed by JS & FA, Ministry of Coal and facilitation cells in CIL & its subsidiaries and NLCIL are functional. Toll free number has also been provided.

ii.      Various meetings at the level of Minister, Secretary & Additional Secretary were held with CPSEs and various stakeholders.

iii.    Help desk has been provided to the Stakeholders/ contractors for facilitating   registration on GST Portal/ clarifications.

iv.     The FAQs have been uploaded on the websites of CIL Subsidiaries, which were raised during the interaction.

v.      Awareness program has been organized with customers and suppliers at various places to sensitize them for migrating to GST system.

vi.     Training session was also conducted in association with CBEC for the officers / officials of the Ministry of Coal & its CPSEs .

vii.    Around 160 training programs were organized by Coal India Limited & its subsidiaries and NLC India Limited.