Follow my blog with Bloglovin
Tuesday , 17 July 2018
Breaking News

Coal consumers being taxed much less under GST: Minister

New Delhi, Aug 3 (IANS) 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.

“However, previously VAT/CST was charged on Clean Environment Cess but no such taxes are levied on GST Compensation Cess,” he said.

The new pan-India tax regime has also widened the scope for state-miner Coal India (CIL), which accounts for over 80 per cent of domestic production, to claim input credit on its costs.

Under the earlier value-added tax (VAT) system, CIL used to claim back part of the five per cent VAT it paid on purchase of material. However, the central excise and some other regional taxes could not be claimed back.

Now under GST regime, Coal India can claim back a major part of the taxes paid as input credit.

Post Source: Ians feed

Comments are closed.

Scroll To Top