GST: Cheer for power sector; capital goods awaits final rates

Coal has been placed under 5% slab, capital goods will be under the 18% slab

New goods and services tax (GST) rate slabs for coal and capital goods are expected to bring cheer to the power sector. However, the fate of capital goods companies will still hinge on final rates for other industries and those on imports.

Coal, the key raw material for about 60 per cent of the power produced in the country, has been placed under the five per cent slab, while capital goods and intermediate industries will be under the 18 per cent slab.

Senior power sector executives said the five per cent rate for coal, down from 11.7 per cent in