You are here: Home » Economy & Policy » News » GST
Business Standard

'Lower tax on coal under GST to help CIL clear stockpile'

As on April 30, Coal India's pithead stock was at 61.9 million tonnes

Press Trust of India  |  New Delhi 

'Lower tax on coal under GST to help CIL clear stockpile'

The 5 per cent on will help state-owned to find consumers for its 62 million tonnes of stock piled up at its pithead, an official said.

pithead is where the mine is located and the mined is kept usually before being transported to power companies.


"With being put in the lowest tax slab of 5 per cent under the the market will respond positively. The inventories will go down," the official said.

The Goods and Services Tax (GST) on has been brought down to 5 per cent from the current tax incidence of 11.69 per cent.

The official further said that with the lower rate on coal, the net value of dry fuel to the consumer is likely to come down.

As on April 30, India's (CIL) pithead stock was at 61.9 million tonnes (MT), said another official.

Power and Minister had earlier said that the 5 per cent rate on will make electricity more affordable for poor people and farmers.

India accounts for over 80 per cent of domestic production. The company is eyeing one billon tonens of production target by 2020.

First Published: Thu, May 25 2017. 20:23 IST
RECOMMENDED FOR YOU