Effective coal prices to fall by Rs 100-150 under GST

Resultant fall in power tariff to be passed on to consumer under anti-profiteering clause in GST

The effective price of coal for consumers is likely to decrease by Rs 100-150, as the country heads moves to a uniform tax regime under the Goods and Services Tax (GST).

Preliminary estimates by Coal India suggest that consumers were effectively charged 11-11.5 per cent for procurement, which is going to decrease to five per cent under the new tax rules. Moreover, the stowing cess of Rs 10 per tonne, paid by coal consumers, in addition to the effective value added tax (VAT) and excise duty rates will be done away with. The additional cess of Rs 400 per tonne will