Insight
Indian coal sector faces mixed impact as GST rises and compensation cess ends
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Report summary
On 3 September 2025, India’s Goods and Services Tax (GST) Council announced an increase in the GST on coal from 5% to 18%, while removing the ₹400/tonne (US$ 4.5/t) compensation cess. The new rates will be effective from 22 September 2025. The Council’s announcement marks a significant shift in fiscal policy for India’s coal sector.
Table of contents
- Event
- What are the implications for the coal industry?
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Sectoral Impact
- Power and utilities
- Industrial sector
- Conclusion
Tables and charts
This report includes the following images and tables:
- Domestic coal prices
- Imported coal prices
What's included
This report contains:
