New Delhi, Sept. 22 -- The Ministry of Coal welcomed the revised GST framework, under which the Rs 400-per-tonne GST Compensation Cess on coal has been removed and the GST rate increased from 5 percent to 18 percent.

Officials said the change will lower overall taxation across coal grades, with reductions ranging from Rs 13.40 per tonne to Rs 329.61 per tonne for grades G6 to G17.

For the power sector, the average cost reduction is estimated at Rs 260 per tonne, translating into a 17-18 paise decrease per kilowatt-hour in generation costs.

The reform addresses previous disparities in tax incidence. Lower-quality coal, such as G-11 non-coking coal - the largest share of Coal India Limited's output - had faced a tax incidence of 65.85 pe...