Piyush Goyal urges power sector to pay taxes honestly
New Delhi: Power minister Piyush Goyal said on Thursday that the power sector was prepared for the 1 July roll out of the goods and services tax (GST) and urged the industry to pay taxes honestly so that any increase in tax burden if noticed, could be addressed.
Goyal said after a meeting with industry representatives that the GST system will offer data for comparison of industry’s tax payments in the six months prior to and after introduction of GST, which will help in assessing whether tax burden has gone up in the new tax regime. If data shows an increase in the tax burden, it could be brought to the notice of the GST Council, the minister said.
“I have asked the industry to pay taxes honestly. It is the dishonest who harm the honest and the nation,” said the ministry.
Goyal said that power tariffs will not rise in the GST regime. The minister said the technical issues raised by the industry at Thursday’s meeting were largely resolved, except two issues on which more consultation was required. These pertain to fly ash products and electrical cables, he said.
Goyal said he is meeting the forum of state power regulators on Friday to discuss ways of passing on to consumers the benefit of a reduction in tax on coal to power consumers.
Under GST, the tax incidence on coal will come down from 11% now to 5%, excluding the Rs400 per tonne cess. Coal at present has a central excise duty of 6% and a state value added tax of 5%.