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Coal cess to contribute to GST Compensation Fund: Piyush Goyal
Jul-21-2017

Power and Coal Minister Piyush Goyal has said the coal cess will contribute to the Goods and Services Tax (GST) compensation fund meant to compensate states for five years for loss of revenue from implementation of GST. 

Goyal also mentioned that along with the coal cess, cess on other products like pan masala, tobacco, aerated water would also be the part of GST Compensation Fund. The Power and Coal Minister further said that after five years, any amount left would be shared on 50 per cent basis between Centre and States.

Under the GST regime, the government has decided to continue the coal cess at Rs 400 per tonne, while aerated drinks purchased from nearby shops will become more expensive, with the GST rate applicable being 28 per cent, along with a 12 per cent additional cess.

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