Articles 8th Sep 2025

The Coal Conundrum: A Tax Rationalization or Rate Change Fuelling Cost Escalation

Authors

Harsh ShahPartner | Mumbai
Mehul Palor Principal Associate | Mumbai

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Our Partner Harsh Shah and Principal Associate Mehul Palor have co-authored an insightful piece “The Coal Conundrum: A Tax Rationalization or Rate Change Fuelling Cost Escalation” published in Taxsutra

The authors explain how the proposed increase in GST on coal from 5% to 18%, despite the abolition of the ₹400/ton compensation cess, may not be revenue neutral as suggested. Instead, the change could potentially raise costs, impact coal-generated electricity tariffs, and trigger cascading effects on multiple industries.

Read the article here

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