GST impact: Effective coal prices reduce by 2-3% for power sector consumers

However, prevailing local taxes and environmental taxes have effectively led to less price reduction

After the implementation of the goods and services tax (GST) regime, effective coal prices — notified price plus taxes — have decreased by 2-3 per cent for consumers from the power sector as the new tax structure has abridged several additional taxes.

Coal attracts 5 per cent tax under the new tax regime compared to 12 per cent tax earlier. Prevailing local taxes, environmental taxes and other hidden charges have effectively brought down the tax rate by 2-3 per cent, instead of seven per cent.

"In effect, the effective tax rate on coal has reduced by 2-3 per cent, which