Quick Summary
The cost of electricity generation in India is expected to decline by 17-18 paise per unit following a major reform in coal taxation. The GSTCouncil, in its 56th meeting, scrapped the Rs 400-per-tonne compensation cess on coal, a move that the Ministry of Coal said will significantly lower input costs for the power sector. According to official estimates, the removal of the cess will bring down the average coal price by about Rs 260 per tonne. Coal prices across grades G6 to G17 are projected
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FAQ :
Electricity generation costs are expected to decrease by 17-18 paise per unit.
The GST Council has removed the Rs 400-per-tonne compensation cess on coal.
The removal of the cess is estimated to bring down the average coal price by about Rs 260 per tonne.
Yes, the GST rate on coal has been increased from 5% to 18%.
The reform makes domestic coal more competitive against imports by removing the cess, which previously made imported coal cheaper.
Industry experts believe the move will lead to lower power costs for consumers.
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