The Goods and Services Tax (GST) regime in effect from last month has reduced the incidence of tax on coal to 5 per cent, as compared to a cumulative tax of more than 13 per cent on account of various indirect taxes earlier, Parliament was informed on Thursday.
“In the pre-GST regime there was Excise Duty on coal at 6 per cent, VAT at 5 per cent (on intra-state sale) Stowing Excise Duty at Rs 10 per tonne of coal production, Central Sales Tax (CST) at 2 per cent (on inter-state sale, on submission of Form C),” Coal and Power Minister Piyush Goyal told the Lok Sabha in a written reply.
“Post implementation of GST, all these taxes and levies have been subsumed and GST at 5 per cent is being charged to consumers,” he said.
The Minister said that the earlier Clean Environment Cess on coal at Rs 400 per tonne was replaced by the GST Compensation Cess also at the rate of Rs 400 per tonne. Read More…
Credit By: ET Energy World
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