56th GST Council Decisions to Benefit Coal Sector

The 56th GST Council meeting in New Delhi has introduced significant reforms in the coal sector's taxation, increasing the GST rate from 5% to 18% while removing the GST compensation cess of Rs. 400 per ton. These changes aim to rationalize the tax burden across different coal grades, reduce costs for the power sector, and promote self-reliance by making Indian coal more competitive against imports. The reforms are expected to benefit both coal producers and consumers by improving liquidity and reducing overall tax incidence despite the higher GST rate.

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