Tax Overhaul Boosts Coal India’s Push to Replace Pricey Imports

India’s move to revise the consumption tax structure comes at a perfect time for state miner Coal India Ltd., which is battling plateauing demand and bloated inventories.

The South Asian nation increased the goods and services tax on coal last week, while getting rid of a special levy. The net impact is a reduction in tax on domestic coal, lowering costs for users and aiding the state miner’s goal to replace the country’s imports of the fuel.

The Kolkata-based company sees replacing imports as a way to boost its sales and help the government save foreign exchange spent ...