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Fuel & Power5% GST RateUpdated July 2026

Calculate GST for Coal

Calculate GST on coal, lignite, briquettes, and similar solid fuels manufactured from coal.

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Quick Summary

HSN/SAC Code#2701
Tax CategoryFuel & Power
ITC EligibilityEligible for power plants and industrial factories using coal for fuel
Effective DateJuly 1, 2017
Applicable Tax
5%
Standard GST RateHSN Code 2701

GST Rate Explanation

Coal and solid fuels under HSN 2701 attract a low GST rate of 5% to prevent cascading energy inflation in electricity generation and steel production.

Calculation Mode
Net Amount (Before Tax)₹10,000.00
CGST (Central Tax) (2.5%)₹250.00
SGST (State Tax) (2.5%)₹250.00
Total GST (5%)₹500.00
Gross Amount₹10,500.00

Visual Tax Split & Collection Rules

Intrastate Split Allocation
CGST (Central Tax): 2.5%
SGST (State Tax): 2.5%

Within State (CGST + SGST)

When supply is within the same state (intrastate), the CGST and SGST are collected. The total tax is split 50/50 between Central and State governments.

Across States (IGST)

When supply spans across states (interstate), a single Integrated GST of 5% is collected in full by the Central government before allocation.

GST Rate Structure Slabs

Tax SlabCGST (Central)SGST (State)IGST (Integrated)Notes
0%0.0%0.0%0.0%Exempted / Nil rated goods
5%2.5%2.5%5.0%Essential items & services
12%6.0%6.0%12.0%Standard reduced rate items
18%9.0%9.0%18.0%Standard general rate items
28%14.0%14.0%28.0%Luxury / Sin goods & services

GST Calculation Examples

One tonne of industrial coal

Add GST (Exclusive)

Formula: Amount + (Amount × Rate%)

Base Amount: ₹5,000.00

GST (5%): ₹250.00

Total: ₹5,250.00

Remove GST (Inclusive)

Formula: Amount − (Amount / (1 + Rate%))

Total Amount: ₹5,000.00

Base Amount: ₹4,761.90

GST Included: ₹238.10

Bulk supply for manufacturing furnace

Add GST (Exclusive)

Formula: Amount + (Amount × Rate%)

Base Amount: ₹5,00,000.00

GST (5%): ₹25,000.00

Total: ₹5,25,000.00

Remove GST (Inclusive)

Formula: Amount − (Amount / (1 + Rate%))

Total Amount: ₹5,00,000.00

Base Amount: ₹4,76,190.48

GST Included: ₹23,809.52

Frequently Asked Questions

Government References & Notifications

Tax Disclaimer Notice

Coal transactions are also subject to a Compensation Cess of Rs 400 per tonne, which must be added manually.

Last updated: July 2026