You are here: Home » News-IANS » Business-Economy
Business Standard

Post-GST, coal consumers to benefit with Rs 6,000 cr savings in taxes

IANS  |  Kolkata 

Coal consumers are expected to be benefitted by Rs 6,000 crore annual savings with reduction in rates after the implementation of the Goods and Services (GST), an official said on Thursday.

In the pre-regime, there was excise duty on coal at the rate of six per cent, stowing excise duty at Rs 10 per tonne of coal production, value added at five per cent (on intra-state sale), and central sales tax at two per cent (on inter-state sale). Post-implementation of GST, all these taxes and levies have been subsumed and of five per cent is being charged from consumers.

"We have estimated that on an average the reduction in rate on local sales is about five per cent and on the inter-state sales the rate of reduction in taxes is about three per cent. This (the reduction of tax rates) will give an advantage to the customers to the tune of Rs 6,000 crore (annually)," a Coal India official said.

He said the miner is facing an inverted tax structure in regime as its output is taxed at a lower rate while its inputs are taxed on higher rates.

"Coal has been made taxable at five per cent in the GST regime while taxes are ranging between 18-28 per cent on our inputs. Our output is taxed at five per cent while our inputs are taxed at higher rates. This is a kind of an inverted tax structure and, going forward, this will lead to refund situation."

The official also said that demonetisation did not have much of impact on the miner as most of the payments were made through online banking system.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, September 14 2017. 18:04 IST