The exemption on coal rejects provided to or by coal washeries was approved by the council for the 49th Goods and Service Tax ( GST ). In order to implement the suggestions made at the 49th GST Council Meeting held on February 18, 2023, the Central Board of Indirect Taxes and Customs ( CBIC ) published Notification No. 1/ 2023-Compensation Cess (Rate) on February 28, 2023. This notification will take effect on March 1, 2023.
The 49th meeting of the GST Council took place in Delhi on February 18, 2023, and was presided over by Smt. Nirmala Sitharaman, the Union Minister of Finance.
The GST Council has recommended that both coal rejects provided to and supplied by a coal washery, resulting from coal on which Compensation Cess has been paid and no Input Tax Credit (“ITC”) thereto has been claimed by anyone, be covered by the exemption benefit.
The following entry shall be substituted in the aforementioned notification for the entry in column (3) of the Schedule, beside Sl. No. 41A:
“Coal rejects supplied to a coal washery or by a coal washery, arising out of coal on which compensation cess has been paid and input tax credit thereof has not been availed by any person”.
Earlier it was “coal rejects supplied by a coal washery, arising out of coal on which compensation cess has been paid and input tax credit thereof has not been availed by any person.”
Prior to this notification, the exemption only applied to “coal rejects supplied by a coal washery,” but it now also refers ‘to coal washery’.
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