Summer internShip project

report
Summer trAininG
ON project
OVERVIEW OF
“GOODS AND SERVICE TAX”
HIDALCO INDUSTRIES LTD.AT RENUSAGAR POWER
DIVISION

BACHELOR OF COMMERCE

SESSION
(2021 to 2024)

SUBMITTED TO:- GUIDED BY: -

MR. ABHISHEK KUMAR Mr. K.K. Sharma
PANDEY Mr. Suresh Roongta
Mr. O.P. Pandey

SUBMITTED BY: -
SUNNY RAJ ROLL. NO.-2110922010105
B.COM 3RD YEAR
 ACKNOWLEDGEMENT

Perseverance, Inspiration and Motivation have always played a key role in

the success of any venture. It is often difficult to understand a wide spectrum
of knowledge without proper guidance and advice.

First of all I would like to thanks SCHOOL OF MANAGEMENT

SCIENCES LUCKNOW which has given us this
opportunity to incorporate the summer training program in the curriculum
which has helped us to learn some valuable facts of practical.
I also thankful to Hindalco Industries Ltd. Renusagar Power Division for
giving us an opportunity to pursue our Internship in such a prestigious
organization, and especially Mr. Suresh Roongta and Mr. O.P.Pandey
(Account department), for being a very supportive and helpful guide. His
continuous guidance and involvement helped me immensely in the course of
my project.
Force in leading us through this immense learning project i.e. “OVERVIEW
OF GOODS AND SERVICES TAX.” His continuous
support, guidance and encouragement have helped me to do my research work
in an efficient way.

SUNNY RAJ
B.COM 3RD YEAR
2110922010105
S.M.S. LUCKNOW
 DECLARATION

I Student of B.COM.3RD Year, here by declare that the project entitled

“OVERVIEW OF GOODS AND SERVICES TAX IN HINDALCO
INDUSTRIES LTD. AT RENUSAGAR POWER DIVISION”
Submitted to the HEAD OF DEPARTMENT , is my original work and the
information I have enclosed are true and reliable as per my knowledge and
research.

SUNNY RAJ
B.COM. 3RD YEAR
2110922010105
S.M.S. LUCKNOW

3
 HISTORY & INTRODUCTION OF
ADITYA BIRLA GROUP
hiStory of AdityA BirlA Group
The Aditya Birla Group is an Indian multinational conglomerate
corporation headquartered in Mumbai, India. It operates in over 27
countries with more than 130,000 employees worldwide. The group has
diversified business interests and is dominant.

BuSineSSeS
Aditya Birla is organized into various subsidiaries that operate across
different sectors. Among these are viscose staple fiber, non-ferrous metals,
cement, viscose filament yarn, branded apparel, carbon black, chemicals,
Retail (under the 'More' brand of supermarkets), fertilizers, chemicals,
insulators, financial services, telecom, BPO and IT services. The Group
consists of four main companies, which operate in various industry sectors
player in all the sectors in which it operates such as viscose staple fiber,
metals, cement, viscose filament yarn, branded apparel, carbon black,
chemicals, fertilizers, insulators, financial services, telecom, BPO and IT
services.

The Aditya Birla group is a US$ 30 billion conglomerate which gets 60 %

of its revenues from outside India. The Aditya Birla Group has been
adjudged the best employer in India and among the top 20 in Asia by the
Hewitt-Economic Times and Wall Street Journal Study 2007. The origins
of the group lie in the conglomerate once held by one of India's foremost
industrialists Mr. Ghanshyam Das Birla.

5
 Non-ferrous metals
The Group's non-ferrous metals are under Hindalco. It is a dominant
player in aluminum and copper. Its manufacturing locations are primarily
in India, and it owns mines in Australia. On 11 February 2007, the
company entered into an agreement to acquire the Canadian company
Novelis for U$6 billion making the combined entity the world's largest
rolled-aluminum producer. On 15 May 2007, the acquisition was
completed with Novelis shareholders receiving $44.93 per outstanding
share of common stock. Hindalco makes alumina chemicals, primary
aluminum, rolled products, alloy wheels, roofing sheets, wire rods, cast
copper rods, copper cathodes and several other products

Cement

The Group's cement business was earlier under both Grasim Industries
and Ultra Tech Cement. The two entities are now merged into Ultra Tech
cement to form India's largest cement company.

Ultra Tech cement was originally the cement business of L&T which was
acquired by Aditya Birla Group in 2004

cArBon BlAck
The Group is the fourth largest manufacturer of Carbon Black
worldwide.[11] It operates out of facilities in Egypt, Thailand, India and
China.

Birla has also announced their intentions to purchase Columbian

Chemicals Co. Press Release

The Aditya Birla Group is the world's largest player in the Viscos Staple
Fiber industry. It operates out of India, Laos, Thailand, Malaysia and
China. It owns the Birla Cellulose brand. Apart from viscose staple fiber, the
group also owns acrylic fiber businesses in Egypt and Thailand, viscose
filament yarn businesses and spinning mills at several locations all over India
and South East Asia. The group has pulp and plantation interests in Canada
and has recently invested in plantations in Laos. The Aditya Birla group is
also a major player in the branded garments market in India.

telecom ServiceS
Idea Cellular is now owned by Aditya Birla Group. Idea Cellular started
off as a joint venture with the group, AT&T and the Tata Group. However
the stakes of the remaining partners was eventually acquired by the group.
After an Initial Public Offering on the Indian Stock Markets, Idea Cellular
now accounts for a third of the group's market capitalization. The company
is headquartered in Mumbai and has pan-India operations.

BuSineSSeS
Major subsidiaries and associates

• Aditya Birla Nuvo

• Grasim Industries Limited
• Hindalco Industries Limited
• UltraTech Cement Limited
• Aditya Birla Minacs Worldwide Limited Samruddhi Cement Novelis
Inc.
• Aditya Birla Minerals
• Aditya Birla Chemicals (India)Limited
• Utkal Alumina International Limited
• Dahej Harbour& Infrastructure Limited
• Aditya Birla Science and Technology Company Limited
• Tubed Coal Mines Limited
• Birla Sun Life Asset Management Company Limited
• Aditya Birla Finance Limited
• Aditya Birla Money Mart Limited
• Aditya Birla Money Limited
• Aditya Birla Insurance Brokers 7
 chAritABle
The Group actively involves itself in several community development
initiatives – in particular around its manufacturing location. The group also
supports development activities in areas like healthcare, education,
sustainable livelihood, infrastructure and social causes. The group's
philanthropic activities are guided by Mrs. Rajashree Birla.

It works in 3,700 villages, reaching out to 7 million people annually through

the Aditya Birla Centre for Community Initiatives and Rural Development. It
runs 45 schools and 18 hospitals. Hindalco Industries Limited is a global
leader in aluminum and copper. The metals powerhouse has a consolidated
turnover of Rs.60, 000 crore (US$ 13 billion). It is the world's largest
aluminum rolling company and one of the biggest producers of primary
aluminum in Asia. Its copper smelter is the world's largest custom smelter at
a single location. Established in 1958, Hindalco commissioned its aluminum
facility at Renukoot in Eastern U.P in 1962. Later acquisitions and mergers
with Indal, Birla Copper and the Nifty and Mt. Gordon copper mines in
Australia, strengthened the company's position in value-added alumina,
aluminium and copper products, with vertical integration through access to
captive copper concentrates.

In 2007, the acquisition of Novelis Inc. a world leader in aluminium rolling

and can recycling, marked a significant milestone in the history of the
aluminium industry in India. With Novelis under its fold, Hindalco ranks
among the global top five aluminium majors, as an integrated producer with
low-cost alumina and aluminium facilities combined with high-end rolling
capabilities and a global footprint in 12 countries outside India. Its combined
turnover of around US$ 13 billion, places it in the Fortune 500 league.
Hindalco Industries Ltd. (BSE: 500440, NSE: HINDALCO) is one of the
world's largest Aluminium manufacturing company and is a subsidiary of the
Aditya Birla Group It is run by one of the world's youngest billionaires, Mr.
K.M. Birla
finAnciAl informAtion

The company has annual sales of $ 5 billion and employs 13,675 people and
is listed on Forbes 2000. A metals powerhouse with a turnover of US$ 14
billion, Hindalco is one of the world's largest aluminium rolling company and
one of the biggest producers of primary aluminium in Asia. Novelis takeover
On February 11, 2007, the company entered into an agreement to acquire the
Canadian company Novelis for U$6 billion, making the combined entity the
world's largest rolled-aluminium producer. On May 15, 2007, the acquisition
was completed with Novelis shareholders receiving $44.93 per outstanding
share of common stock.

Hindalco, through its wholly owned subsidiary AV Metals Inc., acquired

75,415,536 common shares of Novelis, representing 100 percent of the issued
and outstanding common shares.

Immediately after closing, AV Metals Inc. transferred the common shares of

Novelis to its wholly owned subsidiary AV Aluminum Inc.

other AcquiSitionS And tAkeoverS

In July 2007, Hindalco announced it is acquiring the stake of Alcan Inc.'s in

the Utkal Alumina Project located in Orissa.

In June 2000, acquisition of controlling stake in Indian Aluminium Company

Limited (Indal) with 74.6 per cent equity holding.

Forbes ranking Hindalco is listed on the 2011 Forbes Global 2000 at the
position 643

9
introduction of AdityA BirlA
 Mr. Praveen Maheshwari
Head – Corporate Projects & Procurement Cell

Mr. B.B Jha

Company Secretary

Mr. Anil Malik

Chief People Officer

Mr. Vineet Kaul

Business / Unit Head

Mr. Dilip Gaur, Group Executive President, Copper

Mr. Sachin Satpute, Chief Marketing Officer, Aluminium

Mr. Satish M Bhatia, President, Foil and Packaging

Mr. R. S. Dhulkhed, Senior President, Operations

Mr. Sanjay Sehgal, President, Chemicals

Mr. D. K. Kohly, Chief Officer Operations, Renukoot Unit &

Renusagar Units

Utkal Alumina International Ltd

Mr. Rajesh Jha, CEO

11
Novelis Inc.

Mr. Philip Martens, President and Chief Executive Officer

Aditya Birla Minerals Limited

Mr. D. Bhattacharya, Chairman

Mr. Sunil Kulwal, CEO and MD

Mr. Peter Torre, Company Secretary

ABout the compAny

HINDALCO INDUSTRIES LIMITED
Hindalco ranks among the global leader of aluminium producers based on
shipments and is an integrated producer with low cost base and strong
presence across the value chain. It is under the flagship of ADITYA BIRLA
GROUP.
In the late 1950s, G. D. Birla took the bold step to set up the country's first
integrated aluminium facility at Renukoot, Uttar Pradesh. Hindalco grew in
size and scale under the dynamic leadership of the late Aditya Vikram Birla.
The chairman of Hindalco Industries is Mr. KUMAR MANGALAM BIRLA.
In 2007, the landmark acquisition of Novelis Inc., the world's largest
aluminium rolling company, placed Hindalco's footprint across the globe,
securing it a rank amongst the top five global aluminium majors.
HIDALCO INDUSTRIES have 6 sub divisions–
Renusagar
• Renukoot
• Mahan
• Hirakund
• Utkal Alumina
• Aditya Captive
RENUSAGAR-
Renusagar power division, a captive power plant of Hindalco Industries
Limited having installed capacity of 800 MW with 10 TGs (ranging from 68
MW to 84 MW) and 11 PF fired Boilers which is established in the year 1967
which is located in Sonebhadra district of Uttar Pradesh. The units have been
commissioned in phases with first unit being installed in 1967 and the latest
being installed in 2003.Renusagar supply electricity to Renukoot where the
manufacturing of Aluminium is done. For generating electricity per day 13K
million ton coals is burned. The company is getting coals from NCL.

Renusagar Division

RENUKOOT-
Renukoot plant was established in 1962 which is located in Sonebhadra
district of Uttar Pradesh. It operates across the aluminium value chain from
bauxite mining, alumina refining, aluminium smelting to downstream rolling
and extrusions. The company uses electricity supplied from Renusagar power
division for manufacturing Aluminium. Renukoot has earned the Integrated
Management System (IMS) certification combining quality, environment and
occupational health and safety into one business excellence model. The unit
has been a recipient of several national and international awards in quality,
environment management, and energy conservation, CSR, among others.

13
 Renukoot Division

MAHAN-
Mahan Aluminium, located in Bargawan, Singrauli district, Madhya Pradesh,
is an integrated aluminium smelting complex, which comprises 359KTPA of
aluminium smelter supported by a 900MW power plant. Alumina, the major
raw material for the smelting operation, is sourced from
Hindalco’s Utkal and Muri alumina refineries. Mahan Aluminium is an ISO
9001:2008 and 14001:2004 certified units, and its primary products are LME
registered. It is focused not only on production, but on the overall
development of people and society.

Mahan Division
HIRAKUND-
Hirakud-FRP Plant, located in Sambalpur district, Odisha. It specialises in
thin-gauge tight tolerance products. It is 467.5 MW captive power plants. This
plant supplies power to Hirakud smelter of Hindalco Industries. The coal for
the plant is sourced from Talabira captive coal mines.

Hirakund Division

UTKAL ALUMINA-
Utkal Alumina Refinery project is situated in Rayagada district of Orissa. It is
comprises of a 1.5 MTPA Alumina Refinery, Bauxite mines (Baphlimali) with
reserves lasting for over 25 years. It is a captive plant which generates 90 MW
of electricity. The output from UAIL supplied to feed alumina requirement to
the Mahan and the Aditya Smelters.

Utkal Alumina Division

ADITYA CAPTIVE –

15
Aditya Aluminium is a smelter-power plant situated in Lapanga in Sambalpur
district of Orissa. It is 360,000 tonnes smelter supported by a 6 x 150 MW
coal based captive power. It is uses alumina produced by Utkal Alumina.

Aditya Captive Division

VISION, MISSION, & VALUES OF HINDALCO
INDUSTRIES

Vision

“To be a premium metals major, global in size and reach, with a passion for
excellence”

Mission

“To relentlessly pursue the creation of superior shareholder value by

exceeding customer expectations profitably, unleashing employee potential
and being a responsible corporate citizen adhering to our values”.

Values

Integrity: Honesty in every action.

Commitment: On the foundation of integrity, doing whatever it takes
to deliver, as promised.
Passion: Missionary zeal arising out of an emotional engagement with
work.
Seamlessness: Thinking and working together across functional silos,
hierarchy levels, businesses and geographies.
Speed: Responding to stakeholders with a sense of urgency.

17
 SWOT ANALYSIS OF HINDALCO INDUSTRIES LIMITED:-

STRENGTH-
• Hindalco produced best quality of Aluminium, Copper, High tension
wires etc
• It has strong global brand image.
• It provide friendly environment of their employees.
• It tries to serve maximum customer satisfaction.
• It believes in upliftment and betterment of the society that is why the
company is involved in various CSR activities.
• It focuses on safety and security of the employees that is why the
company use to conduct safety training program for all employees every
month.
WEAKNESS –
• Hindalco is using old database system i.e. oracle for doing their
business.
• Company is not using upgraded technology in terms of producing
aluminium as compared to global giants (China) in Aluminium industry.
OPPORTUNITIES –
• Company is trying to expand their businesses by doing acquisition and
merger with other companies.
• Under the vision and great leadership of Mr. Kumar Mangalam Birla
Company is trying to get global recognition.
THREATS –
• Hindalco is facing strong domestic and global competition from
VEDANTA, TATA, JINDAL, and POSCO.
• The company is also facing PRICE WAR from their Chinese Players.
 RESEARCH METHODOLOGY
INTRODUCTION OF RESEARCH METHODOLOGY

Research Methodology is the systematic, theoretical analysis of the methods

applied to a field of study. It comprises the theoretical analysis of the body of
methods and principles associated with a branch of knowledge.
In other words,
The basic concept of research methodology refers to the way in which
companies conduct their research and how they collect the data they need.

TYPES OF RESEARCH METHODOLOGY

Types of research can be classified in many different ways. some major ways
of classifying research include the following.

a. Descriptive versus Analytical Research

b. Applied versus Fundamental Research
c. Qualitative versus Quantitative Research
d. Conceptual versus Empirical Research

a. Descriptive versus Analytical Research- Descriptive research

concentrates on finding facts to ascertain the nature of something as it
exists. In contrast analytical research is concerned with determining
validity of hypothesis based on analysis of facts collected.

b. Applied versus Fundamental Research- Applied research is carried

out to find answers to practical problems to be solved and as an aid in
decision making in different areas including product design, process
design and policy making. Fundamental research is carried out as more
to satisfy intellectual curiosity, than with the intention of using the
research findings for any immediate practical application.
c. Qualitative versus Quantitative Research- Quantitative research
studies such aspects of the research subject which are not quantifiable,

19
 and hence not subject to measurement and quantitative analysis. In
contrast quantitative research makes substantial use of measurements
and quantitative analysis techniques.

d. Conceptual versus Empirical Research- Conceptual research is

involves investigation of thoughts and ideas and developing new ideas
or interpreting the old ones based on logical reasoning. In contrast
empirical research is based on firm verifiable data collected by either
observation of facts under natural condition or obtained through
experimentation.

SOURCES OF RESEARCH METHODOLOGY

PRIMARY SOURCES-

A primary source provides direct evidence about an event, object, person, or

work of art. Primary sources include historical and legal documents,
eyewitness accounts, results of experiments, statistical data, pieces of creative
writing, audio and video recordings, speeches, and art objects.

SECONDARY SOURCES

Secondary sources describe, discuss, interpret, comment upon, analyze,

evaluate, summarize, and process primary sources. Secondary source
materials can be articles in newspapers or popular magazines, book or movie
reviews, or articles found in scholarly journals that discuss or evaluate
someone else's original research.

Objectives& Scope of Study

• To know about the changes occur after implementation of GST of
Hindalco Industries Ltd.
• To know whether GST is beneficial for the company or not in terms of
statutory compliance, Cascading effects of Taxation etc.
 ABOUT THE TOPIC
Types of Taxes in India:-

• Direct Tax
• Indirect Tax

• Direct Tax –
Direct Tax is the tax directly paid to the Government by the taxpayers. It is
imposed directly by the Government and cannot be transferred to any other
entity for payment.
Examples of Direct Taxes in India
a. Income Tax
b. Wealth Tax
c. Corporation Tax

• Indirect Tax –
Indirect taxation or indirect tax refers to tax that does not come directly from
employees’ incomes, company profits, or assets.
Examples of Indirect Taxes in India
a. Custom Duty
b. Excise Duty
c. Service Tax

21
d. Sales Tax
e. VAT

Exercise Duty

Additional
Custom Duty
Entry Tax &
Octroi
Purchase Tax

VAT GST
Luxury Tax
Entertainment
Tax
Taxes on
advertisement,
betting,
glambling
 OVERVIEW ON GST

GST is an Indirect Tax which has replaced many Indirect Taxes in India. The
Goods and Service Tax Act was passed in the Parliament on 29th March
2017. The Act came into effect on 1st July 2017.
It will be a game changing reform for Indian economy by developing a
common Indian market and reducing the cascading effect of tax on the cost
of goods and services. It brings more transparency in “Doing Business” and
creating competitiveness in Industry. The uniformity of taxes and
compliances has reduced compliance costs for industry.
GST aims to make India a common market with common tax rates and
procedures and remove the economic barriers thus paving the way for an
integrated economy at the national level.
The GST would be applicable on the supply of goods or services as against
the present concept of tax on the manufacture or sale of goods or provision of
services. It would be a destination based consumption tax.
GST is a multi-tier tax where ultimate burden of tax fall on the consumer of
goods/ services.
From the consumer point of view, the biggest advantage would be in terms
of a reduction in the overall tax burden on goods, which is currently estimated
to be around 25%-30%.

23
The idea of moving towards the GST was first mooted by the then Union
Finance Minister in his Budget for 2007-08. Initially, it was proposed that
GST would be introduced from 1stApril, 2010.

Why does India need GST?

• GST is being introduced majorly due to 2 reason :
• The current indirect tax is full of uncertainties due to multiple rates.
• Due to multiple rates there are multiple forms.

Advantages of GST:-
a. Revenue Booster-
The revenue of the country is increased after the implementation of GST
as it promote export, raise employment, encourage, foreign exchange in
the country. After GST implementation, various direct and indirect taxes
which are being paid by Hindalco Industries are forfeited. The company
got the overall advantage in tax payment system, which ultimately
revamped the profit of Organisation.

b. Single Point Taxation-

GST bring uniformity in taxation law which leads to single point taxation
for the supply of goods and services all over the country. Single point
taxation also helped Hindalco Industries in various aspects in saving direct
and indirect taxes. Earlier in various states when any goods is being
supplied to different places, the company needs to pay individual taxes in
different states. Now, after single point taxation, it becomes easier for
company as well as customers & stakeholders for smooth movement
of material from one place to another.
c. Increase FDI (Foreign Direct Investment) –
It increase the flow of FDI as it eliminate the multiple tax law which is the
reason of less foreign investment.
d. Simplified tax laws-
This reduce litigation and wastage of time for filing number of taxes like
excise duty, VAT etc.

e. Increase in export and employment-

It results in increased employment, promotion of export which boost the
overall economic growth of the country.

Disadvantages of GST:-

a. Increased cost due to software purchase-

Business have to either update or purchase new software to keep their
business going which increases the cost. HIL also undergone these changes
and changed its software system w.r.t. new GST system, it increased cost
of the company.
b. Increase operational cost-
As GST is new for all the businesses, so the company
Have to employ agent of filling the GST tax which increased the
operational cost of the company. Due to implementation of GST, the
company has recruited few GST experts for overall understanding of GST
concept, and paying salaries to them.
Types of GST:-
a. CGST- CGST refers to the Central GST tax that is levied by the Central
Government of India on any transaction of goods and services tax taking
place within a state. It is one of the two taxes charged on every intrastate
(within one state) transaction

Example- When Hindalco Industries of Uttar Pradesh purchase raw

material from the supplier of Uttar Pradesh than CGST will be
applicable.

b. IGST- Integrated GST (IGST) is applicable on interstate (between two

states) transactions of goods and25 services, as well as on imports. This
 tax will be collected by the Central government and will further be
distributed among the respective states.

Example- When Hindalco Industries of Uttar Pradesh purchase raw

material from the supplier of different state like West Bengal then IGST
will be applicable.

c. UTGST- The Union Territory Goods and Services Tax, commonly

referred to as UTGST, is the GST applicable on the goods and services
supply that takes place in any of the five Union Territories of India,
including Andaman and Nicobar Islands, Dadra and Nagar Haveli,
Chandigarh, Lakshadweep and Daman and Diu.

Example- When Hindalco Industries purchase raw materials from

union territories like Andaman & Nicobar island than UTGST is
applicable.

d. SGST- SGST (State GST) is one of the two taxes levied on every
intrastate (within one state) transaction of goods and services. SGST is
levied by the state where the goods are being sold/ purchased.
Difference between various Types of GST
Taxes

Types of CGST SGST IGST UGST/UTGST

Differences
Applicable Intrastate Intrastate( Within Inter-state Within one Union
transactions (Within one one state) (Between two state Territory (UT)
(Goods& state) or one state and one
Services) union territory) and
imports.
Collected by Central State Govt. Central Govt. UT Govt.
Govt.
Benefitting Central State Govt. Central Govt. & State UT Govt.
Authority Govt. Govt.
Tax Credit Use CGST SGST IGST UTGST
Priority IGST IGST CGST IGST
SGST

Features of GST:-
a. DUAL GOODS AND SERVICE TAX-
GST has two components: one is levied by Central Government and
other is levied by State Government. The rates for CGST and SGST
are decided by Central Government.

b. APPLICABILITY OF GST TO ALL TRANSACTIONS-

The CGST and SGST is applicable to all transaction of goods and
services made for running the business except the excluded goods
like alcohol, petrol & diesel etc.

c. COMPUTATION OF GST ON THE BASIS OF INVOICE

CREDIT METHOD-
The liability of CGST and SGST is computed on the basis of invoice
credited method i.e. the tax paid by immediate purchase of goods and
services on the basis of invoice issued by the supplier.
d. PAYMENT OF GST-
The CGST and SGST is paid on the separate accounts of Central
Government and State Government depends upon goods and services
purchased.

e. INPUT TAX CREDIT (ITC) SET OFF-

Since the Central GST and State GST are to be treated separately, taxes
paid against the Central GST shall be allowed to be taken as input tax
credit (ITC) for the Central GST and could be utilized only against the
payment of Central GST. The same principle will be applicable for the
State GST.

27
Process to get input tax credit-
To claim input credit under GST –

• The company must have a tax invoice(of purchase) or debit note

issued by registered dealer
Note: Where goods are received in lots/instalments, credit will be available
against the tax invoice upon receipt of last lot or instalment.

• The company should have received the goods/services

Note: Where recipient does not pay the value of service or tax thereon within
3 months of issue of invoice and he has already availed input credit based on
the invoice, the said credit will be added to his output tax liability along with
interest.
• The tax charged on the purchases has been deposited/paid to the
government by the supplier in cash or via claiming input credit

• Supplier has filed GST returns

Example- ITC Claim done by Hindalco Industries:

f. MAINTENANCE OF RECORDS-
A taxpayer or exporter would have to maintain separate details in books
of account for availement, utilization or refund of Input Tax credit of
CGST, SGST and IGST.

g. PERIODICAL RETURNS –

The taxpayer would need to submit periodical returns, in common

format as far as possible, to both the Central GST authority and to the
concerned State GST authorities.
 GST TAX SLAB

List of items included in 0% Tax Slab:-

• Goods – No taxes will be levied on goods like milk, fruits, vegetables,

bread, salt, bindi, curd, sindoor, natural honey, bangles, handloom,
besan, flour, eggs, stamps, printed books, judicial papers, and
newspapers.
• Services – All hotels and lodges who carry a tariff below ₹ 1,000 are
exempted from taxes under GST.
List of items included in 5% Tax Slab:-

• Goods – The goods which will attract a taxation of 5% under GST

include skimmed milk powder, fish fillet, frozen vegetables, coffee,
coal, fertilizers, tea, spices, pizza bread, kerosene, ayurvedic
medicines, agarbatti, sliced dry mango, insulin, cashew nuts,
unbranded namkeen, lifeboats etc,
• Services – Small restaurants along with transport services like
railways and airways, Standalone ACs non-ACs Restaurants and
those which serve liquor, Takeaway Food, Restaurants in hotels with
a room tariff less than ₹7,500.

List of items included in 12% Tax Slab:-

• Goods – Items coming are the tax slab of 12% include frozen meat
products, butter, cheese, ghee, pickles, sausage, fruit juices,
namkeen,tooth powder, medicine,umbrella, instant food mix, cell
phones, sewing machine, man-made yarn, etc.
29
 • Services – Business class air tickets will attract a tax of 12% under
GST

List of items included in 18% Tax Slab:-

• Goods – As mentioned above, most of the items are part of this tax slab.
Some of the items are flavoured refined sugar, cornflakes, pasta, pastries
and cakes, detergents, washing and cleaning preparations, safety glass,
mirror, glassware, sheets, pumps, compressors, fans, light fitting,
chocolate, preserved vegetables, tractors, ice cream, sauces, soups,
mineral water, deodorants, suitcase, brief case, vanity case, oil powder,
chewing gum, hair shampoo, etc
• Services – Restaurants located inside hotels with tariffs of ₹7,500 and
above, outdoor catering(input tax credit to be available) , IT and
Telecom services and financial services along with branded garments
List of items included in 28% Tax Slab:-

• Goods –Sunscreen, pan masala, dishwasher, weighing machine, paint,

cement, vacuum cleaner. Other items include automobiles, hair
clippers, and motorcycles.
• Services –Five-star hotels, racing, movie tickets and betting on casinos
and racing.
OUTSIDE GST

31
PRE-GST INDIRECT TAX STRUCTURE IN
INDIA
 GOOD AND SERVICE TAX NETWORK
• Incorporated in March 2013 as Section 25 private limited company
with paid up capital of Rs. 10 crore

• Equity Holders o Central Government - 24.5%

o EC and all States together - 24.5%

o Financial Institutions – 51%

• To function as a Common Pass-through portal for taxpayer so

o submit registration application

o file returns o make tax payments

• To develop back end modules for 27 States (MODEL –II)

• Infosys appointed as Managed Service Provider (MSP)
• Appointed 73 GST Suvidha Providers (GSPs)

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 Role of CBIC
Role in Policy making: Drafting of GST Law, Rules & Procedures –
CGST,UTGST & IGST Law

CBIC is responsible for administration of the CGST and IGST law

Assessment, Audit, Anti-evasion & enforcement under CGST, UTGST

& IGST Law

Levy & collection of Central Excise duty on products outside GST –

Petroleum Products & Tobacco

Levy & collection of Customs duties

Developing linkages of CBIC - GST System with GSTN

Training of officials of both Centre & States Outreach

programs for Trade and Industry

Director General of Safeguards, CBIC has been mandated to conduct

detailed enquiry on anti-profiteering cases.
 MAIN FEATURE OF GST ACT
Concurrent jurisdiction for levy & collection of GST by the Centre
(CGST) and the States (SGST)

Centre to levy and collect IGST on supplies in the course of inter-

State supplies & on imports

Compensation for loss of revenue to States for five years

All transactions and processes only through electronic mode –

Nonintrusive administration
PAN Based Registration

Registration only if turnover more than Rs. 20 lac (Rs. 10 lacs for
special category States except J&K)

Option of Voluntary Registration

Composition threshold shall be Rs. 100 lakh

Composition scheme shall not be available to inter-State

suppliers, service providers (except restaurant service)
and specified category of manufacturers

Deemed Registration in three working days

Input Tax Credit available on taxes paid on all procurements

(except few specified items)

Set of auto-populated Monthly returns and Annual Return

Composition taxpayers to file Quarterly returns

Automatic generation of returns

GST Practitioners for assisting filing of returns

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 GSTN and GST Suvidha Providers (GSPs) to provide technology based
assistance
Tax can be deposited by internet banking, NEFT / RTGS, Debit / credit card
and over the counter
Concept of TDS for certain specified categories (to be brought in
force wef 01.07.2018)

Concept of TCS for E-Commerce Companies (to be brought in force

wef 01.07.2018)

The e-way bill system has been introduced nation-wide for all
interState movement of goods with effect from 01.04.2018. As on
01.06.2018, all States except three States and all Union Territories
have introduced e-way bill system for intra-state movement of goods

Refund to be granted within 60 days

Provisional release of 90% refund to exporters within 7 days

Interest payable if refund not sanctioned in time

Refund to be directly credited to bank accounts

Comprehensive transitional provisions for smooth transition of

existing tax payers to GST regime

Special procedures for job work

System of GST Compliance Rating

Anti-Profiteering provision – National Anti-Profiteering Authority
already set up
Limitation or weakness in Pre GST Regime

1. Malpractice, some vendors were use to take registration & later on

cancel it. But they get their registration no. & that they mention on their
invoices & collect tax from buyers. As they have already cancelled their
registration, there was no return filling & payment of those collected
taxes to government. Now the innocent buyer will claim input tax credit
on such invoices & Government cannot punish such innocent buyer. So,
there is loss of revenue to government.

2. Under new GST Regime, one will get input tax credit on his purchases
only when respective vendor will show that particular purchase as sale.
So, a confirmation is required from each vendor, this requirement
pushes level of transparency to a new limit. Every Business man in
industry has to show their purchases & sell, reconcile the same with
respective vendor or buyer.

3. If anyone tries to hide its sell in order to avoid tax, buyer will not get
input credit of tax he has paid in purchases. So, aggrieved buyer will
force the seller to show that particular sell. This control compels
everyone to make genuine & transparent sell & purchase records.

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 CONCLUSION
❖ We can say that the overall performance of Hindalco industry ltd. is
very good.

❖ It has a bright future.

❖ Hindalco industries are able to maintain high realization largely

because it focuses on specialty business as well as prudent decision
making.

❖ So we can say Hindalco Ltd. Renusagar Power Division is a good

Place for Learning of Efficiency & Effective Definitions.

❖ At Last we can Say that Financial Condition of Hindalco Industries is

Very good.

❖ The Inventory Turnover Ratio shows how rapidly the Inventory is

turning into receivable through sales. This Ratio has been continuously
increasing since FY 2017- 2018. A High Inventory because more
frequently the Stocks are sold. So we can Say that Enterprises have a
very good Turnover Ratio. Thus Hindalco has a Very good Inventory
Management.

REFERENCE
❖ Books:

a. Kothari, C.R., Research Methodology, New Delhi, Vikas

Publication, 1974.

b. Panday, I.M.,” Financial Management”, 7 Ed, New Delhi,

c. Vikas Publication House Pvt. Ltd., 1995.

❖ Internet:

# www.google.com

# www.hindalco.com

# www.adityabirla.com

❖ NEWSPAPER
▪ THE TIMES OF INDIA
▪ THE ECONOMICS TIMES

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