The Central Electricity Regulatory Commission (CERC) has issued a notice scheduling a public hearing to discuss the recent changes in the Goods and Services Tax (GST) structure affecting the procurement of coal.
The hearing is being held in connection with Suo Motu Petition No. 10/SM/2025, initiated by the Commission following notifications from the Ministry of Finance.
Background on Tax Changes
The Ministry of Finance, via Notification No. 9/2025-Central Tax (Rate) dated September 17, 2025, increased the GST rate on coal from 5% to 18%. Concurrently, Compensation Cess of ₹400 per Metric Ton (MT) was abolished through Notification No. 2/2025-Compensation Cess (Rate). Both changes became effective from September 22, 2025.
Public Hearing Details
- Subject: Abolition of GST compensation Cess and increase in the GST rate from 5% to 18% on coal procurement.
- Date: Monday, October 13, 2025.
- Time: 11:00 Hours.
- Venue: Online Video Conference (Microsoft Teams link to be shared later).
- Invited Parties: Generating companies and distribution companies of the Procurer States, along with any other affected party in Petition No. 10/SM/2025.
Participation Guidelines
The Commission has requested interested parties to confirm their participation and facilitate arrangements:
Participants must register their names on the SAUDAMINI Portal via the “Hearing Registration” hyperlink on the homepage. The deadline for registration is October 7, 2025.
Those intending to make oral submissions (limited to 5-10 minutes) during the hearing are requested to inform the Commission.
A brief written note of any submissions must be emailed to the specified addresses by October 10, 2025.
The CERC emphasized the importance of stakeholder participation for assisting the Commission in reaching a “just and fair conclusion on different issues at stake.”