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GST reform, a transformative step towards Aatm Nirbharta: Ministry of Coal
The Business Guardian
|September 23, 2025
The Ministry of Coal has welcomed the decisions taken at the 56th meeting of the GST Council held in New Delhi, which have brought significant changes to the taxation structure of the coal sector.
The ministry hailed these reforms as a step towards ‘Aatm Nirbharta’ in coal and a balanced approach that benefits both coal producers and consumers alike.
Key decisions of the 56th GST Council Meeting on coal include: removal of the Rs. 400 per tonne GST compensation cess previously levied on coal, and an increase in GST rate on coal from 5 per cent to 18 percent. “The impact of the new reform on coal pricing and the power sector is a substantial reduction in overall tax burden, with coal grades G6 to G17 seeing decreases in the range of Rs 13.40 per tonne to Rs 329.61 per tonne. For the power sector, the average reduction is around Rs 260 per tonne, translating into a cut of 17-18 paise per kWh in the cost of generation,” the Ministry of Coal said in a statement.
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