Coal faces GST uncertainty as compensation cess may end early

With the GST compensation cess set to lapse sooner than expected, industry is grappling with uncertainity over whether the GST rate on coal — currently at 5 per cent — will be raised to 18 per cent. Coal is among a handful of items such as tobacco, aerated drinks, and certain vehicles that attract the cess, which compensates states for revenue loss under the GST regime. Alternatively, the cess on…