Piyush Goyal Clarifies Tax Incidence On Coal Lower Under GST

Piyush Goyal Clarifies Tax Incidence On Coal Lower Under GST

Union power and coal minister Piyush Goya on Thursday outlined steps taken by the government to handhold industry on compliance with Goods and Services Tax (GST) even as he asserted that the tax incidence was lower under the new regime.

He pointed out that in pre GST regime, coal attracted central excise duty of 6 per cent, stowing excise duty of Rs 10 per tonne and VAT of 5 per cent besides central sales tax of 2 per cent on inter-state transactions.

But after implementation of GST, he said, all these taxes have been subsumed under GST and only 5 per cent tax is payable, Goyal said in reply to a question in parliament.

He clarified that clean environment cess of Rs 400 per tonne was payable prior to GST which has now been replaced by GST compensation cess which has equal incidence.

Talking about measures taken by the government to help the industry with implementation of GST, Goyal said facilitation cells in the coal ministry as well as in Coal India and NLC have been opened.

He also added that Help desk has been provided to contractors for facilitating registration on GST Portal.

Goyal also pointed out that FAQs have been uploaded on the websites of CIL subsidiaries, which were raised during the interaction. Further, awareness programme has been organised with customers and suppliers at various places to sensitize them for migrating to GST system, Goyal said.

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