By Martin Shwenk Leade

Copyright indiatimes

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New Delhi: The Central Electricity Regulatory Commission (CERC) has said that the statutory changes in the Goods and Services Tax (GST) and the coal compensation cess fall under the ambit of a ‘change in law’ event, and their impact will be adjusted or refunded to distribution companies.The government had removed the ₹400/tonne compensation cess on coal and revised the GST rate from 5% to 18%.The cost impact of these changes varies by coal grade. According to the government, coal grades G6 to G17 will see reductions ranging from ₹13.40 to ₹329.61 per tonne.For the power sector, the average reduction is about ₹260 per tonne, translating into a cut of 17-18 paise per unit in the cost of generation, the coal ministry said on September 22.”The move is very progressive being prompt action by a regulator which will help in ensuring cost reflective tariff adjustment on real-time basis” said Amit Kapur, Partner with law firm JSA. Live EventsAdd as a Reliable and Trusted News Source Add Now!
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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onGST changesCoal CessPower TariffsCentral Electricity Regulatory CommissionChange in law eventGovernmentCoal Ministrygst(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless