The increase in the GST on oil and gas EDP (exploration, development, and production) contracts from 12% to 18% could hit upstream operations by inflating production costs and creating stranded taxes, analysts feel. The higher tax has come at a time when realisations of oil producers have weakened due to global market pressures. However, while GST on coal has been hiked from 5% to 18%, this will be more than offset by the removal of compensation cess component (national calamity contingent duty) on the fuel. The move will lower costs of thermal power business, particularly for plants utilising domestic coal, and may result in tariff reliefs to the consumers. Given the recent policy thrust to coal-based thermal power, and a pick up in investments in the sector after a long lull, the tax relief is aptly timed, analysts reckon.