Archive · 2 Oct 2025
CERC to Hear Discoms and Gencos on GST Impact on Coal
The government changed the tax on coal, increasing it from 5% to 18% and removing a fee called compensation cess.
The Central Electricity Regulatory Commission (CERC) is holding a hearing to figure out how this will affect electricity companies (Discoms) and power plants (Gencos).
Because the changes to the law may have a material impact on power purchase agreements, a hearing is being held.
The CERC will decide if companies need to change how they charge for electricity because of the tax changes.
This could affect the cost of electricity for consumers.
CERC is holding a public hearing with Discoms and Gencos regarding GST rate changes.
GST on coal increased from 5% to 18% and compensation cess was abolished.
The regulator aims to issue uniform directions for handling the tax changes.
The changes are considered a "change in law" event under power purchase agreements.
ICRA anticipates a reduction in power generation costs and potential consumer savings.
- Who
- CERC, Discoms, Gencos
- What
- Hearing on the impact of GST rate rationalization on coal procurement
- When
- October 2, 2025
- Where
- Not specified
- Why
- To determine the impact of GST changes on tariffs and provide relief.
- Event
- CERC hearing on GST rate changes for coal
- Participants
- Discoms, Gencos, affected parties
- GST Change Effective Date
- September 22, 2025
- GST Rate Change
- 5% to 18% on coal
- Additional Change
- Abolition of ₹400 per tonne compensation cess
- CERC's Goal
- Issue uniform directions for consistent treatment of law events