Double taxation versus projected era of efficient tax system
This petition had 82 supporters
On import of coal " Clean Energy Cess" of Rs. 400 pmt was levied till 30 th June 2017 besides other taxes. On introduction of GST, a "GST compensation cess" of the same amount that is Rs. 400 pmt has been imposed on coal, payable at the time of filing Bill of entry. No input credit is available in the system for Rs. 400 already paid as "clean energy cess" on the unsold stock of 30th June, thereby leading to double taxation on the same stock as now on invoicing, the same stock will additionally suffer a " GST compensation cess ". Worse, there is no clean energy cess on the coal imported in the GST era hence the old stocks have become uncompetitive as they will suffer double taxation quantum of 400 pmt. This will lead to unbearable losses on coal stocks ( rough estimation of more than 20 million Mt, physical stock but quantum of yet to be invoiced is any body's guess ) lying in different ports across India leading to eventual winding up of some companies / NPA in banks.
Importers and Industries across sectors ( textile, power, steel, etc ) will get adversely affected due to this double taxation.
One time input credit should be allowed on Clean energy cess paid till 30th June on unsold stocks of coal in the ports. This double taxation is against the very intention and spirit of the projected new taxation era.
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