A PROJECT REPORT ON

GOODS AND SERVICES TAX

MANAGED BY CENTRAL COALFIELDS LIMITED

FROM 03/02/2021 TO 16/03/2021

BACHELOR OF BUSINESS ADMINISTRATION

SCHOOL OF MANAGEMENT STUDIES
DR. SHYAMA PRASAD MUKHERJEE UNIVERSITY, RANCHI
2018-2021

UNDER THE GUIDANCE OF :- SUBMITTED BY :-

SIR A. D. WADHWA NAME :- AMIT KUMAR RAVI
SR. FINANCE MANAGER SPECIALISATION :- FINANCE
CCL, DARBHANGA HOUSE SEMESTER :- VI
REGISTRATION NO. :- 180056
EXAM ROLL NO. :- 18B840056

1
 CERTIFICATE

This is to certify that the project report entitled “A Study on Goods

and Service Tax (GST) of Central Coalfield Limited, Ranchi” has
been carried out by AMIT KUMAR RAVI from 03.02.2021 TO
16.03.2021, Semester 6th having Roll number-18B840056 in
partial fulfillment of requirement for the award of the degree of
Bachelor of Business Administration from Dr. Shyama Prasad
Mukherjee University, Ranchi.

The data reported in it the best of my knowledge data reported is

original the assistance and help received during the course of this
project has duly acknowledged.

Date: .......................... Signature

Place: ………………. Mr. A.D. Wadhwa
(project guide)

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 DECLARATION

I the undersigned AMIT KUMAR RAVI, student of BBA 3rd year

declare that I have done the project report on the topic “A study
on Goods and Service Tax (GST) of Central Coalfield Limited,
Ranchi” Which is submitted as partial fulfillment for the
requirement of the degree of Bachelor of Business Administration.
The data represented in the project is true and correct to the best
of my knowledge and belief.
The assistance and help that received during the course of this
investigation has been duly acknowledged. It is further declared
that it has an original piece of work and it is worthy of the
consideration for the degree of Bachelor of Business
Administration.

AMIT KUMAR RAVI

BBA (FINANCE)
SEMESTER :- VI
REG. NO. :- 180056
ROLL NO. :- 18B840056
SESSION :- 2018-2021

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 ACKNOWLEDGEMENT

I feel enriched with the knowledge and experience gained during

my stay at CCL. The guidance and cooperation received during
my stay has left a long-lasting impression on my mind. I am
grateful to meet so many professional people who led me to this
internship period.
I am using this opportunity to express my gratitude and special
thanks to MR. A. D. WADHWA Senior Finance Manager, CCL for
taking part in useful decisions and giving necessary advice and
guidance.
I perceive this opportunity as a big milestone in my career
development.
I will strive to use gained skill in best possible way, and I will
continue to work on their improvement, in order to attain desired
career objectives. Hope to continue cooperation with all of you in
future.

Thank you.
Name:

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CONTENTS

CERTIFICATE ......................................................................................................................................... 2
DECLARATION ...................................................................................................................................... 3
ACKNOWLEDGEMENT .......................................................................................................................... 4
GOODS AND SERVICES TAX [GST] ......................................................................................................... 7
INTRODUCTION ......................................................................................................................................... 7
GST RATES IN INDIA .................................................................................................................................. 7
HISTORY .................................................................................................................................................... 8
FORMATION .............................................................................................................................................. 9
IMPLEMENTATION .................................................................................................................................. 10
TYPES OF TAXES ...................................................................................................................................... 11
REVENUE DISTRIBUTION ......................................................................................................................... 12
GST COUNCIL........................................................................................................................................... 12
IMPACT OF GST ON INDIAN ECONOMY .................................................................................................. 13
CRITICISMS .............................................................................................................................................. 14
CENTRAL COALFIELDS LIMITED (CCL) .................................................................................................. 16
INTRODUCTION ....................................................................................................................................... 16
HISTORY .................................................................................................................................................. 16
C.C.L - THE HISTORICAL MARCH .............................................................................................................. 18
NATIONALIZATION OF COAL MINES ....................................................................................................... 18
FORMATION OF C.C.L .............................................................................................................................. 20
ANNUAL REPORT 2019-20 ...................................................................................................................... 21
VISION & MISSION .................................................................................................................................. 24
OBJECTIVE ............................................................................................................................................... 24
TDS MECHANISM UNDER GST ............................................................................................................ 26
TDS CERTIFICATE ..................................................................................................................................... 28
TDS RETURN ............................................................................................................................................ 28
CONSEQUENCES OF NOT COMPLYING WITH TDS PROVISIONS ............................................................. 29

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INPUT TAX CREDIT ............................................................................................................................. 31
INPUT TAX CREDIT UNDER GST ............................................................................................................... 31
HOW DOES ITC WORK ............................................................................................................................. 32
HOW CCL MANAGE ITC ........................................................................................................................... 33
COMPENSATION CESS IN GST ............................................................................................................. 34
INTRODUCTION ....................................................................................................................................... 34
INPUT TAX CREDIT................................................................................................................................... 34
VALUATION IF CESS TO BE LEVIED ON VALUE ........................................................................................ 35
LAWS AND RULES APPLICABLE................................................................................................................ 35
GST COMPENSATION CESS IN CCL .......................................................................................................... 35
CONCLUSION ........................................................................................................................................... 36
GST RETURNS..................................................................................................................................... 38
IMPORTANT POINTS ............................................................................................................................... 38
CONSEQUENCES OF FAILURE TO SUBMIT THE ANNUAL RETURN .......................................................... 39
TYPES OF GSTR ........................................................................................................................................ 41
GST MANAGED BY CCL ....................................................................................................................... 46
AT THE TIME OF PURCHASE .................................................................................................................... 46
AT THE TIME OF SALE .............................................................................................................................. 48
Problems faced by CCL while delivering COAL to their Customers ........................................ 49
How to avoid this type of losses .................................................................................................... 50
CONCLUSION ..................................................................................................................................... 53
RECOMMENDATION .......................................................................................................................... 54
FINDINGS ........................................................................................................................................... 55
REFERENCES....................................................................................................................................... 56

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 GOODS AND SERVICES TAX [GST]

INTRODUCTION
Goods and Services Tax (GST) is an indirect
tax (or consumption tax) used in India on the supply of goods and
services. It is a comprehensive, multistage, destination-based tax:
comprehensive because it has subsumed almost all the indirect
taxes except a few state taxes. Multi-staged as it is, the GST is
imposed at every step in the production process, but is meant to
be refunded to all parties in the various stages of production other
than the final consumer and as a destination-based tax, it is
collected from point of consumption and not point of origin like
previous taxes. The tax rates, rules and regulations are governed
by the GST Council which consists of the finance ministers of the
central government and all the states. The GST is meant to
replace a slew of indirect taxes with a federated tax and is
therefore expected to reshape the country's 2.4 trillion dollar
economy, but its implementation has received criticism. Positive
outcomes of the GST include the travel time in interstate
movement, which dropped by 20%, because of disbanding of
interstate check posts.
GST RATES IN INDIA
1-Exempted categories – 0%
2-Commonly used Goods and Services – 5%
3-Standard Goods and Services fall under 1st slab – 12%
4-Standard Goods and Services fall under 2nd Slab – 18%
5-Special category of Goods and Services including luxury - 28%

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Goods Kept Outside The GST-
Alcohol for human consumption.
Petrol and petroleum products (GST will apply at a later date),
i.e., petroleum crude, high-speed diesel, motor spirit (petrol),
natural gas, aviation turbine fuel

HISTORY
The reform of India's indirect tax regime was started in 1986 by
Vishwanath Pratap Singh, Finance Minister in Rajiv Gandhi’s
government, with the introduction of the Modified Value Added
Tax (MODVAT). Subsequently, Prime Minister P. V. Narasimha
Rao and his Finance Minister Manmohan Singh, initiated early
discussions on a Value Added Tax (VAT) at the state level. A
single common "Goods and Services Tax (GST)" was proposed
and given a go-ahead in 1999 during a meeting between the
Prime Minister Atal Bihari Vajpayee and his economic advisory
panel, which included three former RBI governors IG Patel, Bimal
Jalan and C Rangarajan. Vajpayee set up a committee headed by
the Finance Minister of West Bengal, Asim Dasgupta to design a
GST model.
The Asim Dasgupta committee which was also tasked with putting
in place the back-end technology and logistics (later came to be
known as the GST Network, or GSTN, in 2015). It later came out
for rolling out a uniform taxation regime in the country. In 2002,
the Vajpayee government formed a task force under Vijay Kelkar
to recommend tax reforms. In 2005, the Kelkar committee

8
recommended rolling out GST as suggested by the 12th Finance
Commission.
After the defeat of the BJP-led NDA government in the 2004 Lok
Sabha election and the election of a Congress-led UPA
government, the new Finance Minister P Chidambaram in
February 2006 continued work on the same and proposed a GST
rollout by 1 April 2010. However, in 2011, with the Trinamool
Congress routing CPI(M) out of power in West Bengal, Asim
Dasgupta resigned as the head of the GST committee.
The UPA introduced the 115th Constitution Amendment Bill on 22
March 2011 in the Lok Sabha to bring about the GST. It ran into
opposition from the Bharatiya Janata Party and other parties and
was referred to a Standing Committee headed by the BJP's
former Finance Minister Yashwant Sinha. The committee
submitted its report in August 2013, but in October 2013 Gujarat
Chief Minister Narendra Modi raised objections.

FORMATION
In the 2014 Lok Sabha election, the Bharatiya Janata Party led
NDA government was elected into power. With the consequential
dissolution of the 15th Lok Sabha, the GST Bill – approved by the
standing committee for reintroduction – lapsed. Seven months
after the formation of the then Modi government, the new Finance
Minister Arun Jaitley introduced the GST Bill in the Lok Sabha,
where the BJP had a majority.

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In February 2015, Jaitley set another deadline of 1 April 2017 to
implement GST. In May 2016, the Lok Sabha passed the
Constitution Amendment Bill, paving way for GST,
However, the Opposition, led by the Congress, demanded that
the GST Bill be again sent back for review to the Select
Committee of the Rajya Sabha due to disagreements on several
statements in the Bill relating to taxation. Finally, in August 2016,
the Amendment Bill was passed. Over the next 15 to 20 days, 18
states ratified the Constitution amendment Bill and the President
Pranab Mukherjee gave his assent to it.

IMPLEMENTATION
A 21-member selected committee was formed to look into the
proposed GST laws. After GST Council approved the Central
Goods and Services Tax Bill 2017, the Integrated Goods and
Services Tax Bill 2017, the Union Territory Goods and Services
Tax Bill 2017, the Goods and Services Tax Bill 2017, these Bills
were passed by the Lok Sabha on 29 March 2017. The Rajya
Sabha passed these Bills on 6 April 2017 and were then enacted
as Acts on 12 April 2017. Thereafter, State Legislatures of
different States have passed respective State Goods and
Services Tax Bills. After the enactment of various GST laws,
Goods and Services Tax was launched all over India with effect
from 1 July 2017 by the President of India, and the Government of
India. The launch was marked by a historic midnight (30 June – 1
July) session of both the houses of parliament convened at the
Central Hall of the Parliament. Though the session was attended

10
by high-profile guests from the business and the entertainment
industry including Ratan Tata.

TYPES OF TAXES
1) Central Goods and Services Tax (CGST)
CGST is the GST levied by the Central Government of India on
the transaction of goods and services with a state or Union
Territory. CGST replaces other central taxes like – Central Excise
Duty, Central Sales Tax, Custom Duty and SAD (Special
Additional Duty) Tax.

2) State Goods and Services Tax (SGST)

SGST is the GST levied by state on transactions of goods and
services within the state. It is one of the two taxes levied within a
state, other being the CGST. State GST replaces the state levied
taxes – Value Added Tax, Luxury Tax, Entry Tax, Entertainment
Tax etc. The revenue thus collected under the SGST is solely
claimed by the respective state government.

3) Integrated Goods and Services Tax (IGST)

While CGST and SGST are the GST levied on intrastate (within
the state) transactions of goods and services; IGST stands for the
GST levied on the interstate (between two states) transaction of
goods and services. However, IGST is collected by the central
government and reimbursed later to the respective state.

4) Union Territories Goods and Services Tax (UTGST)

UTGST is the GST levied on the transaction of goods and
services in these five Union Territories of India – Andaman and
Nicobar Islands, Daman and Diu, Dadra and Nagar Haveli,

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Chandigarh and Lakshadweep. Total GST levied in a Union
Territory is the sum of CGST and UTGST. State GST isn’t
applicable to UTs, as it would require a legislature. Union
Territories of Delhi and Pondicherry rather have SGST, because
they have their own legislature.

REVENUE DISTRIBUTION
Revenue earned from GST (intra state transaction - seller and
buyer both are located in same state) is shared equally on 50-50
basis between central and respective state governments.
For distribution of IGST (inter state transaction - seller and buyer
both are located in different states) collection, revenue is collected
by central government and shared with state where good is
imported.

GST COUNCIL
It is set up by president under article 279-A. It is chaired by union
finance minister.
It will constitute union minister of state in charge of revenue and
minister in charge offinance or taxation or of any other field
nominated by state governments. The 2/3rd representatives in
council are from states and 1/3rd from union.
It will make recommendations on :

• Taxes, surcharge, cess of central and states which will be

integrated in GST.

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 • Goods and services which may be exempted from GST.
• Interstate commerce – IGST- proportion of distribution
between state and center.
• Registration threshold limit for GST.
• GST floor rates.
• Special rates during calamities.
• Provision with respect to special category states specially
north east states.
It may also work as Dispute Settlement Authority for GST.
The Council would consist of 2/3rd representation of states and
1/3rd representation of the Centre. The GST Council will take all
decisions regarding tax rates, dispute resolution, exemptions and
so on.

IMPACT OF GST ON INDIAN ECONOMY

Reduce tax burden on producers and foster growth through more
production. This double taxation prevents manufacturers from
producing to their optimum capacity and retards growth. GST
would take care of this problem by providing tax credit to the
manufacturer.

• Various tax barriers such as check posts and toll plazas

lead to a lot of wastage for perishable items being
transported, a loss that translated into major costs through
higher need of buffer stocks and warehousing costs as well.
A single taxation system could eliminate this roadblock for
them.

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 • A single taxation on producers would also translate into a
lower final selling price for the consumer
• Also, there will be more transparency in the system as the
customers would know exactly how much taxes they are
being charged and on what base.
• GST would add to government revenues by widening the
tax base.
• GST provides credits for the taxes paid by producers earlier
in the goods/services chain. This would encourage these
producers to buy raw material from different registered
dealers and would bring in more and more vendors and
suppliers under the purview of taxation.
• GST also removes the custom duties applicable on exports.
Our competitiveness in foreign markets would increase on
account of lower cost of transaction.
• The proposed GST regime, which will subsume most central
and state-level taxes, is expected to have a single unified
list of concessions/exemptions as against the current
mammoth exemptions and concessions available across
goods and services.
The introduction of Goods and Services Tax would be a very
noteworthy step in the field of indirect tax reforms in India. By
amalgamating a large number of Central and State taxes into
a single tax, it would alleviate cascading or double taxation in
a major way and pave the way for a common national market.

CRITICISMS
Technicalities of GST implementation in India have been criticized
by global financial institutions/industries, sections of Indian media

14
and opposition political parties in India. World Bank's 2018
version of India Development Update described India's version of
GST as too complex, noticing various flaws compared to GST
systems prevalent in other countries; most significantly, the
second-highest tax rate among a sample of 115 countries at 28%.
GST's implementation in India has been further criticized by
Indian businessmen for problems including tax refund delays and
too much documentation and administrative effort needed.
According to a partner at PwC India, when the first GST returns
were filed in August 2017, the system crashed under the weight of
filings.

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 CENTRAL COALFIELDS LIMITED (CCL)

INTRODUCTION
Central Coalfields Limited (CCL) is a subsidiary of Coal India
Limited (CIL), an undertaking of the Government of India. CCL
manages the nationalized coal mines of the Coal Mines Authority,
Central division. CCL is headquartered at Darbhanga House,
Ranchi, Jharkhand. It presently has 65 operative mines (20
underground and 45 opencast) in areas of East Bokaro, West
Bokaro, North Karanpura, South Karanpura, Ramgarh, Giridih
and Hutar.
CCL earned Mini Ratna status in 2007. Ashok Project, Piparwar
Project, Magadh Project and Amrapali Project are among the
largest projects of India.

HISTORY
CCL had a proud past. As NCDC, it heralded the beginning of
nationalization of coal mines in India.

National Coal Development Corporation Ltd. (NCDC) was set up

in October, 1956 as Government-owned Company in pursuance
of the Industrial Policy Resolutions of 1948 and 1956 of the
Government of India. It was started with a nucleus of 11 old state
collieries (owned by the Railways) having a total annual
production of 2.9 million tons of coal.

Until the formation of NCDC, coal mining in India was largely

confined to the Raniganj coal belt in West Bengal and the Jharia
coalfields in Bihar (now in Jharkhand), besides a few other areas
in Bihar (now in Jharkhand) and a part of Madhya Pradesh (now
Chhattisgarh also) and Orissa.

16
From its very beginning, NCDC addressed itself to the task of
increasing coal production and developing new coal resources in
the outlying areas, besides introducing modern and scientific
techniques of coal mining.

In the Second Five Year Plan (1956-1961) NCDC was called

upon to increase its production from new collieries, to be opened
mainly in areas away from the already developed Raniganj and
Jharia coalfields. Eight new collieries were opened during this
period and the production increased to 8.05 million tons by the
end of Second Plan.
During Third Five Year Plan (1961-1966), though the Corporation
had built up a much larger production capacity, it could not be
utilized due to a sluggish domestic coal market. Production had,
therefore, to be pegged down and the development of several
collieries undertaken from the early part of the Plan period, had to
be suspended. By this time, the contribution of NCDC to the
nation's coal production (67.72 million tons) increased to around
9.6 million tones.

With gradual rise in the demand of coal due to commissioning of

new power plants and development of other coal-based industries
during Fourth Five Year Plan (1969-1974), NCDC's production
increased to 15.55 million tons by the terminal year of Fourth Five
Year Plan, i.e., 1973-74.

NCDC played a pioneering role in India's coal industry by

introducing large-scale mechanization and modern and scientific
methods of coal mining for promoting conservation of high grades
of coal and exploiting deep coking coal seams necessitating
heavy capital investment and sophisticated technical skill. NCDC
went in for foreign collaboration with countries such as Poland
and the USSR besides limited collaboration with Japan, West
Germany and France.

17
NCDC's role can be truly assessed by its contribution towards
growth of new coal resources in, what are known as, the outlying
areas. The opening of new mines in Madhya Pradesh, Orissa and
Maharashtra brought about a significant change in these regions
by creating new opportunities of industrialization and employment.
Development of the Singrauli coalfields has brought coal almost
to the door steps of northern India.

With the development and application of improved mining

techniques, emphasis on planning, design and research;
introduction of modern mine management systems and an
enlightened industrial relations policy, NCDC was able to provide
the infrastructure for the total nationalization of coal industry in the
country.

C.C.L - THE HISTORICAL MARCH

Central Coalfields Limited is a Category-I Mini- Ratna Company
since October 2007. During 2009-10, coal production of the
company reached its highest-ever figure of 47.08 million tons,
with net worth amounting to Rs.2644 crore against a paid-up
capital of Rs.940 crore.

Formed on 1st November 1975, CCL (formerly National Coal

Development Corporation Ltd) was one of the five subsidiaries of
Coal India Ltd. which was the first holding company for coal in the
country (CIL now has 8 subsidiaries).

NATIONALIZATION OF COAL MINES

A major event in the history of Indian coal industry during the
Fourth Plan Period (1969-74) was the nationalisation of the
erstwhile privately owned coal mines in two phases. In the first
phase, the management of coking coal mines was taken over by

18
the Government of India on 17th Oct. 1971 and nationalization
was effective from 5th January 1972. A state owned company,
Bharat Coking Coal Ltd. was formed for managing coking coal
mines. For convenience of management, BCCL collieries in the
East Bokaro coalfields in Bihar (now Jharkhand) were transferred
to NCDC, and its projects in Central Jharia region viz., Sudamdih
and Moonidih deep shaft mines were handed over, in stages to
BCCL.
In the second phase of nationalisation, the management of non-
coking coal mines in the country, excepting the captive coal mines
of the two steel plants, viz., TISCO and IISCO, was taken over by
the Government on 31st January 1973. These mines were
subsequently nationalized with effect from 1st May 1973 and
another state-owned company, Coal Mines Authority Ltd. (CMAL)
came into being with headquarters at Calcutta (now Kolkata) to
manage and develop NCDC collieries and other newly
nationalized units. NCDC itself, in this process, became a division
of CMAL which owned 36 collieries under commercial production
in Bihar, Orissa, Madhya Pradesh and Maharashtra, besides four
coal washeries, one by-product coke oven plant, two large central
workshops and manpower of about 71,000.

The formation of CMAL witnessed regrouping of the coal mines

into three divisions, namely, Western, Central and Eastern. The
regrouping had to be done for the convenience of management,
keeping in view the geographical location of the collieries.
► As a result, NCDC units located in the States of Maharashtra
and Madhya Pradesh, with the exception of Singrauli Coalfields,
became a part of the Western Division.
► The Central Division consisted of all the old collieries of NCDC
in Orissa and Bihar (except Sudamdih and Moonidih which had
been handed over to BCCL) and those acquired by CMAL after
take-over in Giridih, East Bokaro, West Bokaro, South Karanpura,
North Karanpura, Hutar & Daltonganj Coalfields in Bihar. The
Central Division consisted of 64 collieries, four coal washeries,

19
one by-product coke oven plat, on bee-hive coke plant and one
central workshop having a manpower of 1,11,500.

FORMATION OF C.C.L
The CMAL, with its three divisions continued upto 1st November
1975 when it was renamed as Coal India Limited (CIL) following
the decision of Govt. of India to restructure the coal industry. The
Central Division of CMAL came to be known as Central Coalfields
Limited and became a separate company with the status of a
subsidiary of CIL, which became the holding company

PRESENTLY C.C.L HAS

62 Operative Mines (22

Number of Mines Underground & 40 Opencast
Mines)

7 Washeries
5 Coking Coal Washeries (Kathara,
Rajrappa, Kedla & Sawang,
Washeries
Kargali)
2 Non-Coking Coal Washeries
(Piparwar & Giddi)

1 Central Workshop (ISO 9001) at

Barkakana
5 Regional Repair/Workshops (3
Repair/Workshops
w/s are ISO 9001) at Jarandih,
Tapin North, Dakra, Giridih &
Bhurkunda

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 7 Coalfields (East Bokaro, West
Operating Bokaro, North Karanpura, South
Coalfields Karanpura, Ramgarh, Giridih &
Hutar)

ANNUAL REPORT 2019-20

OPERATIONAL STATISTICS
Year Ending 31st March 2020 2019 2018 2017 2016 2015 2014 2013 2012
1.
(a)ProductionofRawCo
al: (MillionTonnes)
Underground 0.703 0.315 0.405 0.74 0.85 0.84 0.96 1.02 1.09
Opencast 66.186 68.407 63.000 66.31 60.47 54.81 49.06 47.04 46.91

TOTAL 66.889 68.722 63.405 67.05 61.32 55.65 50.02 48.06 48.00

(b) Overburden
Removal : 103.356 100.490 95.622 102.63 106.78 97.38 59.02 63.31 65.68
(Million Cub.Mts.)

2.Offtake(RawCoal)
(MillionTonnes)
Steel 0.039 0.00 0.00 0.03 0.34 0.65 0.32 1.07 4.04
Power 46.648 45.37 42.22 37.24 33.52 33.41 32.10 31.56 33.68
Cement 0.000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.11
Fertilizer 0.143 0.09 0.15 0.22 0.24 0.24 0.27 0.64 0.95
Others 11.732 13.80 15.73 10.83 12.40 10.23 9.00 8.98 9.25

CoalFeedtoWasheries 8.770 9.19 9.41 12.61 13.09 10.81 10.43 10.63 0.00
Colliery Consumption 0.000 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.01
TOTAL 67.332 68.45 67.51 60.93 59.59 55.34 52.12 52.89 48.04

3. Average Manpower 38695 39919 41467 42919 44346 45849 47406 49076 51156

4. Productivity :
(A)AverageperManper 1728.62 1721.54 1529.05 1562.25 1382.76 1213.81 1055.14 979.30 938.32
Year (Tonnes)
(B)Outputper Manshift(OMS):
(i)Underground (Tonnes) 0.540 0.214 0.194 0.29 0.32 0.29 0.33 0.33 0.32

21
(ii)Opencast(Tonnes) 10.060 9.740 9.372 9.81 8.91 7.56 6.26 6.09 5.79

(iii)Overall(Tonnes) 8.490 8.093 7.195 7.23 6.51 5.46 4.64 4.42 4.19

5.Information — AsperCostReport

(i)EarningperManshift 4003.35 3794.70 3344.68 2985.56 2651.86 2507.87 2377.57 2174.95 1862.96
(ii)Avg. Cost of Production
of Net Saleable 1249.82 1125.09 1285.33 1048.85 1045.84 1099.43 1079.17 1020.42 1038.67
Coal(` P.T.)
(iii)Avg.
SaleValueofProducti
on of Net Saleable
Coal(P.T.) 1547.08 1497.68 1369.23 1414.25 1490.72 1435.90 1414.86 1423.22 1258.70

OPERATIONAL STATISTICS (STANDALONE)

FINANCIAL POSITION
(` in Crore)
Sl. 2017—18 2016—17 2015—16
Particulars 2019—20 2018—19 (Restated) (Restated) (Restated)
No.

Non—Current Assets
A.
(a) Property, Plant
& Equipment 4,670.11 2,496.09 2,421.09 2,426.40 2,541.98
(b) Capital Work in 736.75 2,355.18 1,640.62 1,141.23 303.40
Progress
(c) Exploration and 448.45 405.43 260.67 237.16 201.14
Evaluation Assets
(d) Intangible Assets 4.37 5.74 2.16 3.59 5.25

(e) Financial Assets

—
(i) Investments
32.00 32.00 32.00 32.00
(ii) Loans 0.55 0.66 0.47 0.59 0.92

(iii) Other 1,787.15 1,467.73 1,534.00 723.05 1,533.01

Financial Assets
(f) Deferred Tax 843.44 1,039.09 1,047.58 771.88 725.03
Assets (Net)
(g) Other Non—Current 620.07 1,123.94 1,679.39 1,269.85 119.38
Assets
Total Non—Current Assets (A) 9,142.89 8,925.86 8,617.98 6,605.75 5,430.11

B. Current Assets
(a) Inventories
1,233.36 1,353.66 1,349.23 2,096.26 1,491.26
(b) Financial Assets
— — —
(i) Investments
0.48 52.56
(ii) Trade 2,492.11 1,095.13 1,121.00 1,673.79 1,359.93
Receivables

22
 (iii) Cash & 117.94 244.55 161.98 325.07 1,968.58
Cash Equivalents
(iv) Other Bank 490.85 841.51 1,194.23 1,349.08 2,090.19
Balances
(v) Loans — — — — —

(vi) Other 591.44 628.38 537.60 367.89 383.26

Financial Assets
(c) Current Tax Assets 62.42 — — — —
(Net)
(d) Other Current Assets 2,399.05 2,575.01 2,093.56 1,525.93 1,258.73

Total Current Assets (B) 7,387.65 6,790.80 6,457.60 7,338.02 8,551.95

Total Assets (A + B) 16,530.54 15,716.66 15,075.58 13,943.77 13,982.06

EQUITY AND LIABILITIES

A. EQUITY
(1) Issued,
Subscribed
and Paid—
up Equity
Share
Capital 940.00 940.00 940.00 940.00 940.00
(2) Capital Redemption Reserve — — — — —

Opening Balance
Buyback of
Equity Shares — — — — —
Issue of Bonus — — — — —
Shares
Balance at Closing — — — — —

(3) Capital Reserve — — — — —

(4) General Reserve

Opening Balance
2,153.70 2,068.48 2,029.00 1,958.94 1,863.20
Transfer to/from General reserve 92.39 85.22 39.48 70.06 95.74

— — — — —
Buyback of Equity
Shares
Issue — — — — —
of Bonus Shares
Balance at Closing 2,246.09 2,153.70 2,068.48 2,029.00 1,958.94

23
VISION & MISSION

Vision-
To emerge as a National player in the Primary Energy Sector,
committed to provide energy security to the Country, by attaining
environmentally and Socially Sustainable Growth, through best
practices from Mine to Market.

Mission-
The Mission of Central Coalfields Limited (CCL) is to produce and
market the planned quantity of Coal and Coal products efficiently
and economically in Eco-Friendly manner, with due regard to
Safety, Conservation and Quality.

OBJECTIVE

• To optimize generation of internal resources by improving

productivity of resources, prevent wastage and to mobilize
adequate external resources to meet investment need.
• To maintain high standards of Safety and strive for an
accident free mining of Coal.
• To lay emphasis on afforestation, protection of Environment
and control of Pollution.
• To undertake detailed exploration and plan for new Projects
to meet the future Coal demand.
• To modernize existing Mines.
• To Develop technical know-how and organizational
capability of Coal mining as well as Coal beneficiation and
undertake, wherever necessary, applied research and
development work related to Scientific exploration for greater
extraction of Coal.

24
 • To improve the quality of life of employees and to discharge
the corporate obligations to Society at large and the
community around the Coalfields in particular.
• To provide adequate number of skilled manpower to run the
operations and impart technical and managerial training for
up gradation of skill.
• To improve consumer satisfaction.
• To enhance the CSR activities specifically in the field of
Health, Sanitation and Drinking Water in the Surrounding
villages.

CENTRAL COALFIELDS LIMITED - ISO/OHSAS

CERTIFICATION

CCL bagged the following certifications of International

Management System Standard for three years.

• ISO 9001:2015 - Quality Management System(for

managing customer focus and internal efficiency of the
organization)
• ISO 14001:2015- Environmental Management System(for
managing Environmental concern of the organization)
• OHSAS 18001:2007-Occupational Health and Safety
Management System

25
 TDS MECHANISM UNDER GST
Under the GST regime, section 51 of the CGST Act, 2017
prescribes the authority and procedure for ‘Tax Deduction at
Source’. The Government may order the following persons (the
deductor) to deduct tax at source:
(a) a department or establishment of the Central Government or
State Government; or
(b) local authority; or
(c) Governmental agencies; or
(d) such persons or category of persons as may be notified by the
Government on the recommendations of the Council.
The tax would be deducted @1% of the payment made to the
supplier (the deductee) of taxable goods or services or both,
where the total value of such supply, under a contract, exceeds
two lakh and fifty thousand rupees (excluding the amount of
central tax, State tax, Union territory tax, integrated tax and cess
indicated in the invoice). Thus, individual supplies may be less
than Rs. 2, 50,000/-, but if contract value is more than Rs. 2,
50,000/-, TDS will haveto be deducted. However, no deduction
shall be made if the location of the supplier and the place of
supply is in a State or Union territory which is different from the
State, or as the case may be, Union territory of registration of the
recipient. This can be explained in the following situations.
a) Supplier, place of supply and recipient are in the same
state. It would be intra-state supply and TDS (Central plus

26
 State tax) shall be deducted. It would be possible for the
supplier (i.e. the deductee) to take credit of TDS in his
electronic cash ledger.
b) Supplier as well as place of supply are in different states. In
such cases, integrated tax would be levied. TDS to be
deducted would be TDS (Integrated tax) and it would be
possible for the supplier (i.e. the deductee) to take credit of
TDS in his electronic cash ledger.
c) Supplier as well as place of supply are in State A and
recipient is located in State B. The supply would be intra-
State supply and Central tax and State tax would be levied.
In such case, transfer of TDS (Central tax + State tax State
B) to the cash ledger of the supplier (Central tax + State tax
of State A) would be difficult. So in such cases, TDS would
not be deducted.
Thus, when both the supplier as well as place of supply are
different from that of recipient, no tax deduction at source would
be made.
Registration of TDS deductors: A TDS deductor has to
compulsorily register without any threshold limit. The deductor
has a privilege of obtaining registration under GST without having
required to obtain PAN. He can obtain registration using his Tax
Deduction and Collection Account Number (TAN) issued under
the Income Tax Act, 1961.
Deposit of TDS with the government: The amount of tax
deducted at source should be deposited to the Government
account by the deductor by 10th of the succeeding month. The
deductor would be liable to pay interest if the tax deducted is not
deposited within the prescribed time limit.

27
TDS CERTIFICATE
A TDS certificate is required to be issued by deductor (the
person who is deducting tax) in Form GSTR-7A to the deductee
(the supplier from whose payment TDS is deducted), within 5
days of crediting the amount to the Government, failing which the
deductor would be liable to pay a late fee of Rs. 100/- per day
from the expiry of the 5th day till the certificate is issued. This late
fee would not be more than Rs. 5000/-. For the purpose of
deduction of tax specified above, the value of supply shall be
taken as the amount excluding the central tax, State tax, Union
territory tax, integrated tax and cess indicated in the invoice.
For instance, suppose a supplier makes a supply worth Rs.
1000/- to a recipient and the GST @ rate of 18% is required to be
paid. The recipient, while making the payment of Rs. 1000/- to the
supplier, shall deduct 1% viz Rs. 10/- as TDS. The value for TDS
purpose shall not include 18% GST. The TDS, so deducted, shall
be deposited in the account of government by 10th of the
succeeding month. The TDS so deposited in the government
account shall be reflected in the electronic cash ledger of the
supplier (i.e. deductee) who would be able to use the same for
payment of tax or any other amount. The purpose of TDS is just
to enable the government to have a trail of transactions and to
monitor and verify the compliances.

TDS RETURN
The deductor is also required to file a return in Form GSTR-7
within 10 days from the end of the month. If the supplier is
unregistered, name of the supplier rather than GSTIN shall be

28
mentioned in the return. The details of tax deducted at source
furnished by the deductor in FORM GSTR-7 shall be made
available to each of the suppliers in Part C of FORM GSTR-2A
electronically through the Common Portal and the said supplier
may include the same in FORM GSTR-2. The amounts deducted
by the deductor get reflected in the GSTR-2 of the supplier
(deductee). The supplier can take this amount as credit in his
electronic cash register and use the same for payment of tax or
any other liability.

CONSEQUENCES OF NOT COMPLYING WITH TDS

PROVISIONS
S no. Event Consequences
1. TDS not Interest to be paid along with the
deducted TDS amount; else the amount shall
be determined and recovered as per
the law
2. TDS certificate Late fee of Rs. 100/- per day subject to
not issued or a maximum of Rs. 5000/-
delayed beyond
the prescribed
period of five
days
3. TDS deducted Interest to be paid along with the TDS
but not paid to amount; else the amount shall be
the government determined and recovered as per the
or paid later than law
10th of the
succeeding
month

29
4. Late filing of TDS Late fee of Rs. 100/- for every day
returns during which such failure continues
subject to a maximum amount of rs.
5000/-

Any excess or erroneous amount deducted and paid to the

government account shall be dealt for refund under section 54 of
the CGST Act, 2017. However, if the deducted amount is already
credited to the electronic cash ledger of the supplier, the same
shall not be refunded.

30
 INPUT TAX CREDIT

INTRODUCTION

Input credit means at the time of paying tax on output, we can reduce
the tax we have already paid on inputs and pay the balance amount.

When we buy a product/service from a registered dealer we pay taxes

on the purchase. On selling, we collect the tax. We adjust the taxes paid
at the time of purchase with the amount of output tax (tax on sales)
and balance liability of tax (tax on sales minus tax on purchase) has to
be paid to the government.

This mechanism is called utilization of input tax credit.

INPUT TAX CREDIT UNDER GST

• Input Tax credit under GST One of the most important pillars of an
effective GST is the availability of Input Tax Credit (ITC) to remove the
cascading effect of taxes on transactions. In the enactment these
important provisions have been mentioned in Sec 16 to 18 of the CGST
Act and the respective State Acts.

• Input Tax Credit (ITC) is the backbone of the GST regime. GST is
nothing but a value added tax on goods & services combined. It is these
provisions of Input Tax Credit that make GST a value added tax i.e.,

31
collection of tax at all points after allowing credit for the inputs. The
procedures and restrictions laid down in these provisions are important
to make sure that there is seamless flow of credit in the whole scheme
of transition without any misuse. Thus, the clarity of rules of availment
and utilization will have significant impact on making GST a taxpayer
friendly tax.

HOW DOES ITC WORK

When a trader sells a good to consumers, he collects GST based on the

HSN of the goods sold and the place of destination.

For example-Let us assume that the MRP of the good is INR 1000 and
the rate of applicable GST is 18%. The consumer will, therefore, pay a
total of INR 1180 for the good which includes a GST of INR 180. Without
ITC, the trader will have to pay INR 180 to the government. With input
tax credit or ITC, the trader can reduce the total tax that it will have to
pay the government. This is how it works.

Let us assume that the cost of the good in the hands of the trader is INR
825. This includes INR 125 as GST. The trader can claim INR 125 as input
tax credit and reduce his original tax liability of INR 180 by this amount.
In other words, the trader will need to pay only INR 55 (INR 180 – INR
125) to the government.

Conditions for claiming ITC

A business can claim ITC provided the following conditions have been
met

• It has a GST-compliant invoice

32
• Its supplier has uploaded the invoice to the GSTN

• Its supplier has paid GST to the government

• Returns have been filed

A business under composition scheme cannot avail of the input tax

credit. ITC cannot be claimed for personal use or for goods that are
exempt.

HOW CCL MANAGE ITC

Input tax credit (ITC) is a system according to which net GST amount is
paid to the Government, i.e. total GST amount received from the
customers minus total GST amount paid to the suppliers.

This implies that CCL does not pays the whole GST amount stated in the
GST bills in GSTR-1, but CCL subtracts the GST amount stated in GSTR-2
from the amount stated in GSTR-1 and then pays the remaining amount
to the government.

For example, if CCL has collected GST of Rs 300 crores from its
customers during the sale of coal, and CCL has paid GST of 70 crores to
its suppliers at the time of certain purchases. Then CCL has to pay only
230 crores (i.e. 300cr – 70cr ) to the Government

33
 COMPENSATION CESS IN GST

INTRODUCTION
Goods and Services Tax (Compensation to States) Act, 2017 was
enacted to levy Compensation cess for providing compensation to
the States for the loss of revenue arising on account of
implementation of the goods and services tax with effect from the
date from which the provisions of the Central Goods and Services
Tax Act is brought into force (01/07/2017), for a period of five
years or for such period as may be prescribed on the
recommendations of the GST Council.
The compensation cess on goods imported into India shall be
levied and collected in accordance with the provisions of section 3
of the Customs Tariff Act, 1975, at the point when duties of
customs are levied on the said goods under section 12 of the
Customs Act, 1962, on a value determined under the Customs
Tariff Act, 1975.
Compensation Cess will not be charged on goods exported by an
exporter under bond and the exporter will be eligible for refund of
input tax credit of Compensation Cess relating to goods exported.
In case goods have been exported on the payment of
Compensation Cess the exporter will be eligible for refund of
Compensation Cess paid on goods exported by him.
Compensation cess shall not be leviable on supplies made by a
taxable person who has decided to opt for composition levy.

INPUT TAX CREDIT

The input tax credit in respect of compensation cess on
supply of goods or services can be utilised only towards

34
payment of the compensation cess on supply of goods or
services

VALUATION IF CESS TO BE LEVIED ON VALUE

In case the compensation cess is chargeable on any supply
of goods or services or both with reference to their value,
then for each such supply, the value has to be determined
under section 15 of the Central Goods and Services Tax
Act, 2017.

LAWS AND RULES APPLICABLE

The provisions of the Central Goods and Services Tax Act,2017
and the rules made thereunder, including those relating to
assessment, input tax credit, non-levy, short-levy, interest,
appeals, offences and penalties, shall apply in relation to the levy
and collection of the cess on the intra-State supply of goods and
services. Similarly, in case of inter-State supplies the provisions of
the Integrated Goods and Services Tax Act, and the rules made
thereunder will apply.

GST COMPENSATION CESS IN CCL

• The government of India introduced a cess on coal in the
year 2010. It was like a carbon tax to be levied as an excise
duty on items listed in the tenth schedule to the Finance Act
2010. These items are Coal Lignite and Peat.
• It was also very clear from the Finance Act 2010 that
proceeds of the tax shall not be distributed to the states.
When the cess was introduced it was to be at the rate of Rs.

35
 100 per tons, but when implemented it was effectively Rs.
50 per tons.
• In the Union Budget 2014-15, the rate of cess was increased
to Rs. 100 per tons.
• In 2015 the government further raised the rate to Rs. 200 per
tone and in 2016 again increased it to Rs. 400 per
tons. With the introduction of the Goods and Service Tax
(GST) in India in July 2017, the Clean Energy Cess was
abolished by the Taxation Laws Amendment Act, 2017.
• A new cess on coal production, called the GST
Compensation Cess, was put in its place at the same rate of
Rs 400 per tons. This last round of changes effectively
means continued taxation of coal production as a source of
funding for various regional development needs.
• The coal cess collected from 2010-11 to 2017-18 amounts to
about Rs. 86,440.21 crores as per the information obtained
from government in answers to parliament questions.
Surprisingly out of this amount only Rs. 29.654.29 crores
has been transferred to the NCEF only and Rs. 15,911crores
has been utilized. During the years 2018-19 and 2019-20 the
coal cess would be approximately Rs. 38,500 crores and Rs.
39,100 crores respectively.
• The total amount now in the National Clean energy fund
would be more than one lakh crores. In 2017 when GST was
introduced the amount of unspent balance of about Rs.
56,000 crores in the NCEF was transferred to the State
Compensation Fund which to be utilized to compensate the
states for loss of revenue in the new regime.

36
CONCLUSION
The compensation cess is a cess that will be collected on the 187
supply of select goods and or services or both till 1st July 2022.
The cess will compensate the states for any revenue loss on
account of implementation of GST. This cess will not be payable
by exporters and those persons who have opted for
compensation levy. The input tax credit of this cess can be only
used to pay compensation cess and not the other taxes like
CGST, SGCT or IGST.

37
 GST RETURNS

As per section 44(1) of the CGST Act, 2017 read with rule 80
(1) of the CGST Rules, 2017 every registered person, other than
an Input Service Distributor, a person paying tax under section 51
or section 52, a casual taxable person and a non-resident taxable
person, shall furnish an annual return for every financial year
electronically in Form GSTR-9 through the common portal either
directly or through a Facilitation Centre notified by the
Commissioner. The said Form should be filed on or before the
thirty-first day of December following the end of such financial
year. However, the said due date has extended.

IMPORTANT POINTS
(a) Nil Annual Return- A person registered under GST but having
no transactions during the year are also required to file a Nil
Annual Return. A person whose registration has been canceled
during the year is also required to file the Annual returns unless
the final return has been filed and cancellation completed before
31st March of the relevant financial year.
(b) A Registered person who has opted in or opted out of
composition is required to file both GSTR-9 & GSTR-9A for the
relevant period.
(c) GSTR-9 does not allow for any revision after filing.

38
 (d) It is mandatory to file all monthly / quarterly statement,
viz., FORM GSTR-1 and monthly return FORM GSTR-3B for filing
this return.
(e) The exceptions to the filing of the Annual return applies
to the following categories of registered persons: •
Input Service Distributor
Tax deductor under section 51
Tax collector under section 52
Casual Taxable Person
Non-Resident Taxable Person.
(f) The declaration of the information in the Annual returns
has multiple implications. Any incorrect information can attract tax
demands, interest and penalties on the same, leave alone the
long-term litigations that follow years later.
(g) Liability identified during filing Annual Return can be
deposited with Government using FORM DRC-03.

CONSEQUENCES OF FAILURE TO SUBMIT THE

ANNUAL RETURN
(a) Notice to defaulters - Section 46 of the CGST Act provides
where a registered person fails to furnish a return under section
39 or section 44 or section 45, a notice shall be issued requiring
him to furnish such return within fifteen days in such form and
manner as may be prescribed.

39
 (b) Late Fee for delayed filing - Section 47(2) of the CGST
Act provides for levy of a late fee of ` 100/- per day for delay in
furnishing annual return in Form GSTR-9, subject to a maximum
amount of quarter percent (0.25%) of the turnover in the State or
Union Territory. Similar provisions for levy of late fee exist under
the State / Union Territory GST Act, 2017.
On a combined reading of Section 47(2) and Section 44 (1)
of the CGST Act, 2017 and State / Union Territory GST Act, 2017,
a late fee of ` 200/- per day (Rs. 100 under CGST law + ` 100/-
under State / Union Territory GST law) could be levied which
would be capped to a maximum amount of half percent (0.25%
under the CGST Law + 0.25% under the SGST / UTGST Law) of
turnover in the State or Union Territory.
(c) General Penalty for Contravention of Provisions - As
per section 125, any person, who contravenes any of the
provisions of this Act or any rules made thereunder for which no
penalty is separately provided for in this Act, shall be liable to a
penalty which may extend to twenty-five thousand rupees. An
equal amount of penalty under the SGST/UTGST/IGST Act would
also be applicable. To sum up, a penalty of up to ` 50,000/- could
be levied.
It is important to note that to impose a penalty under section
125 up to ` 25,000, the ingredients such as willful default, etc.,
must be established by a process of adjudication allowing a
reasonable opportunity to the taxable person and not imposed as
a matter of routine.

40
TYPES OF GSTR
1. GSTR-1
• GSTR-1 is the return to be furnished for reporting details of
all outward supplies of goods and services made, or in other
words, sales transactions made during a tax period, and also
for reporting debit and credit notes issued. Any amendments
to sales invoices made, even pertaining to previous tax
periods, should be reported in the GSTR-1 return.
• GSTR-1 is to be filed by all normal taxpayers who are
registered under GST. It is to be filed monthly, except in the
case of small taxpayers with turnover up to Rs.1.5 crore in
the previous financial year, who can file the same on a
quarterly basis.
2. GSTR-2A
• GSTR-2A is the return containing details of all inward
supplies of goods and services i.e. purchases made from
registered suppliers during a tax period. The data is auto-
populated based on data filed by the suppliers in their
GSTR-1 return. GSTR-2A is a read-only return and no action
can be taken.
3. GSTR-2
• GSTR-2 is the return for reporting the inward supplies of
goods and services i.e. the purchases made during a tax
period. The details in the GSTR-2 return are auto-populated
from the GSTR-2A. Unlike GSTR-2A, the GSTR-2 return can
be edited.

41
 • GSTR-2 is to be filed by all normal taxpayers registered
under GST, however, the filing of the same has been
suspended ever since the inception of GST.
4. GSTR-3
• GSTR-3 is a monthly summary return for furnishing
summarized details of all outward supplies made, inward
supplies received and input tax credit claimed, along with
details of the tax liability and taxes paid. This return is auto-
generated on the basis of the GSTR-1 and GSTR-2 returns
filed.
• GSTR-3 is to be filed by all normal taxpayers registered
under GST, however, the filing of the same has been
suspended ever since the inception of GST.
5. GSTR-3B
• GSTR-3B is a monthly self-declaration to be filed, for
furnishing summarized details of all outward supplies made,
input tax credit claimed, tax liability ascertained and taxes
paid.
• GSTR-3B is to be filed by all normal taxpayers registered
under GST.
6. GSTR-4 / CMP-08
• GSTR-4 is the return that was to be filed by taxpayers who
have opted for the Composition Scheme under GST.
• CMP-08 is the return which has replaced the now erstwhile
GSTR-4. The Composition Scheme is a scheme in which
taxpayers with turnover up to Rs.1.5 crores can opt into and
pay taxes at a fixed rate on the turnover declared.
• The CMP-08 return is to be filed on a quarterly basis.

42
7. GSTR-5
• GSTR-5 is the return to be filed by non-resident foreign
taxpayers, who are registered under GST and carry out
business transactions in India. The return contains details of
all outward supplies made, inward supplies received,
credit/debit notes, tax liability and taxes paid.
• The GSTR-5 return is to be filed monthly for each month that
the taxpayer is registered under GST in India.
8. GSTR-6
• GSTR-6 is a monthly return to be filed by an Input Service
Distributor (ISD). It will contain details of input tax credit
received and distributed by the ISD. It will further contain
details of all documents issued for the distribution of input
credit and the manner of distribution.
9. GSTR-7
• GSTR-7 is a monthly return to be filed by persons required
to deduct TDS (Tax deducted at source) under GST. GSTR
7 will contain details of TDS deducted, the TDS liability
payable and paid and TDS refund claimed, if any.
10. GSTR-8
• GSTR-8 is a monthly return to be filed by e-commerce
operators registered under the GST who are required to
collect tax at source (TCS). GSTR-8 will contain details of all
supplies made through the E-commerce platform, and the
TCS collected on the same.
• The GSTR-8 return is to be filed on a monthly basis.

43
11. GSTR-9
• GSTR-9 is the annual return to be filed by taxpayers
registered under GST. It will contain details of all outward
supplies made, inward supplies received during the relevant
previous year under different tax heads i.e. CGST, SGST &
IGST and HSN codes, along with details of taxes payable
and paid. It is a consolidation of all the monthly or quarterly
returns (GSTR-1, GSTR-2A, GSTR-3B) filed during that
year.
• GSTR-9 is required to be filed by all taxpayers registered
under GST*, except taxpayers who have opted for the
Composition Scheme, Casual Taxable Persons, Input
Service Distributors, Non-resident Taxable Persons and
persons paying TDS under section 51 of CGST Act.
• *As per the CBIC notification 47/2019, the annual return
under GST for taxpayers having an aggregate turnover
which does not exceed Rs.2 crore has been made optional
for FY 2017-18 and FY 2018-19.
12. GSTR-9A
• GSTR-9A is the annual return to be filed by taxpayers who
have registered under the Composition Scheme in a
financial year*. It is a consolidation of all the quarterly returns
filed during that financial year.
• *GSTR-9A filing for Composition taxpayers has been waived
off for FY 2017-18 and FY 2018-19 as per the decision taken
in the 27th GST Council meeting.

44
13. GSTR-9C
• GSTR-9C is the reconciliation statement to be filed by all
taxpayers registered under GST whose turnover exceeds
Rs.2 crore in a financial year. The registered person has to
get their books of accounts audited by a Chartered/Cost
Accountant. The statement of reconciliation is between these
audited financial statements of the taxpayer and the annual
return GSTR-9 that has been filed.
• GSTR-9C is to be filed for every GSTIN, hence,
one PAN can have multiple GSTR-9C forms being filed.
• As per the CBIC notification 16/2020, GSTR-9C is waived off
for the taxpayers with an aggregate turnover of more than
Rs 5 crore for the financial year 2018-19.
14. GSTR-10
• GSTR-10 is to be filed by a taxable person whose registered
has been cancelled or surrendered. This return is also called
a final return and has to be filed within 3 months from the
date of cancellation or cancellation order, whichever is
earlier.
15. GSTR-11
• GSTR-11 is the return to be filed by persons who have been
issued a Unique Identity Number(UIN) in order to get a
refund under GST for the goods and services purchased by
them in India. UIN is a classification made for foreign
diplomatic missions and embassies not liable to tax in India,
for the purpose of getting a refund of taxes. GSTR-11 will
contain details of inward supplies received and refund
claimed.

45
 GST MANAGED BY CCL

Central Coalfield Limited pays GST at two stages-

• At the time of purchase.

• At the time of sale

AT THE TIME OF PURCHASE

To Suppliers

• GST is paid to the Government indirectly through the

suppliers.
• CCL has 62 operative mines (22 underground and 40
opencast mines). They also have 7 washeries and
repair workshops. CCL purchases many things for the
proper functioning of these units, such as heavy
machineries, raw materials, safety kits for workers
at mines, medical equipment, etc.

• While purchasing these, suppliers provide the bill along

with GST. But before paying the GST, CCL has to
verify several things-
Rate

• Since there are 4 slabs of GST rates (i.e. 6%, 12%,

18%, 28%), it must be checked that the products
purchased falls under which slab.

46
 • If the supplier charged a different GST rate then it
must be rectified before paying it.
• For example, if the supplier charges 18% GST on
the purchased goods which comes under 12% GST,
then it must be corrected and 12% should be paid. In
the same way, if the supplier charges 6% GST
instead of 12%, then also it must be corrected and
the actual GST rates should be levied on the
products.
Applicability
There are many items on which GST is not applicable
(such as food items, or if the supplier has a turnover of
less than 20 lakhs). So it must be checked if GST is
applicable on the purchased goods or not. If it’s not
applicable, it must not be paid.
CGST-SGST or IGST
 A product comes under CGST-SGST if the
product is manufactured and sold in the same
state. Whereas if a product is manufactured in one
state and sold in another, then it comes under
IGST.
 So it must also be checked whether the goods
purchased comes under CGST-SGST or IGST. In
both cases, the GST rate remains the same.
 Once everything is verified, GST amount is paid to
the suppliers.
 Sometimes CCL withhold the GST which is to be
paid to the suppliers. The GST amount is paid to
the suppliers only after the supplier pays the GST
amount to the Government and provides CCL the

47
 documents regarding it. If failing to do so, CCL
pays the GST amount directly to the Government.
• For example, if a supplier gives a bill of Rs. 30
lakhs which includes a GST of Rs. 5,40,000 at the
rate of 18%. Then CCL pays only Rs. 24,60,000 to
the suppliers and withhold the GST amount at the
time of purchase.
• The main advantage of this method is that it makes
more difficult for tax evaders to avoid paying taxes to
the Government.

AT THE TIME OF SALE

The only product sold by CCL is coal. The CCL supply coals to
various industries, power plants & electricity boards of Jharkhand,
Punjab, Orissa, West Bengal, Uttar Pradesh, Madhya Pradesh,
Haryana, etc.

To supply coal to their customer CCL have two ways:-

1-ROADWAYS
2-RAILWAYS

• Central coalfield limited uses Roadways if they have to

supply within the minor distance like they have to
supply their coal in around 100-200 km they prefer by
road because it cost lesser than trains and this is the
fastest way to delivers their coal within a state.

48
 • Every month CCL delivers around 5 lakh tons of coal by
roadways.
• Around 10% of coals are transported by roadways.
• Central coalfield limited uses railways,if they have to
supply their coals to different states because it takes
less time to delivered the coals to the customers.
• Railways are the cheapest ways to delivers coals to
their customers of others states.
• Every month CCL delivers around 45 lakh tons of coals
by railways.
• Around 90% of coals are transported by railways.
• CCL charges 5% GST & Rs 400 per ton GST
compensation cess from the customer and pays to the
government.
• They charge CGST & SGST if the customers GST
registration no. is of Jharkhand and charges IGST if the
customers GST registration no. is of any other states.

Problems faced by CCL while delivering COAL to their

Customers

• The issues associated with roadways transport are primarily

associated with road maintenance, the generation of noise
and dust, and traffic safety.

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 • And the issues associated with railways transport are
primarily associated with the villagers, as they stealthe coal
when trains stop at various stations and outers of stations.
As a results customer receives the lesser amount of coal as
mentioned in the order bill & also denies paying the
demanded amount by central coalfields limited.
• Due to this, Central Coalfields Limited has to face a loss of
approx. 500-600 crores every year as neither the state
government nor the government of states where the coal is
being stolen has found any solutions to stop this kind of
theft.
• And nor the railways taken anys steps to avoids that types of
theft as all three of them are blaming each other. for this it
results a loss of CCL every year.
• During transportation of coal the quality of coal
degrades.Hence the buyer tends to pay less amount for the
delivered coal.

How to avoid this type of losses

• By the fast moving trains which is only stops at some major

stations or junctions.
• By securities provided by railways or by the state
government.
• Enhanced road connectivity across mineral zones and
consumers.
• Restructuring and/or reallocation of railway networks to
connect with the coal bearing areas.

50
GST bills are generated on each and every truck and wreck of the
train which delivers coal.
CCL generates almost 1 lakh bills every month. Number of bills
slightly fluctuate throughout the year as the sales of coal fluctuate.
During the months of July, august and September, due to rain,
most of the openfield coalmines are filled with water. So, there is
less production of coal and hence there is less sale of coal.
During October, November and December, there is foggy weather
in north India. This affects the quantity of coal supplied as less
wrecks are allowed per train to travel.
During January, February and march the sale of coal is at peak
as the weather is all clear and there are minimum holidays.
Goods and Services Tax Network
CCL has to upload all these bills to the GSTN (Goods and
Services Tax Network). Within the first seven days of the month,
CCL has to upload all the GST bills of the previous month to the
GSTN.
This process includes- collecting all the bills from various
coaleries and billing points, assembling them, cross checking
them with the quantity of coal produced and the uploading it to
GSTR-1.
Then before the 10th day of the month, GST amount is paid to the
Government in accordance with the GST bills.
In case the paid GST amount is less than the amount stated in
the bills, Government sends a notice to the CCL and CCL has to
pay the leftover GST amount next month along with penalty.

51
In case the paid GST amount is more than the amount stated in
the bills, CCL has to bear loss.
So it is better to double check the GST bills and match them with
the production quantity of coal before uploading GST bills to
GSTN and paying the GST amount to the Government, so that
CCL does not have to bear losses and the officers-in-charge does
not get in trouble.
Certain situations occur when a few GST bills may get displaced
and those are not counted while paying GST through GSTN. In
such case, if the bills are found later, those are included with the
GST bills of next month.
Along with this, CCL also has to upload the GST bills that are
raised to CCL by suppliers at the time of purchase. These bills are
uploaded to GSTR-2.
For these bills, the suppliers must have uploaded their GST bills
raised to CCL in their GSTR-1. Government tallies the GSTR-1 of
the suppliers and GSTR-2 of CCL. If both of them matches, this
implies than no GST amount is theft from any side. But if these
two mis-matches, that implies any one of the party has done fraud
while paying the GST amount.
In such case, Government sends notice to the party who has
uploaded less number of bills in GSTN in correspondence with
the other party. The party has to pay the leftover GST amount
along with penalty.
This method makes it difficult for tax evaders to avoid paying GST
to the Government as government has double entries for every
financial transaction regarding GST.

52
 CONCLUSION

Goods and services tax is the indirect tax levied by the

Government of India. Central coalfields limited pays around ₹
300cr annually to the government in the form of GST.
Since CCL is a huge company, it becomes difficult to manage the
GST for them. Therefore, the management of GST by CCL is very
commendable.
CCL faces various problems while managing GST-

• High volume of production makes it tough to manage all

the GST bills and pay the GST amount in accordance with
them.
• Enterprise resource planning is a complex business
software and it is not easy to handle it efficiently.
Nevertheless, CCL has always managed GST very efficiently and
effectively. CCL is one of the highest GST paying company of
Jharkhand.

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 RECOMMENDATION

Recommendations can be used by the Central Coalfields

Limited to increase the efficiency of the company after the
study and analysis of project report on Goods and services tax.

• CCL should focus on their employee’s skill development by

providing proper training.
• CCL have to control the theft of coal from coalmines and
during its transportation. CCL bears heavy losses due to
the theft of coal.
• Strict actions are needed to be taken on this account.
• CCL should look for simpler way for collecting, arranging
and storing GST bills.
• CCL should improve the Enterprise Resource Planning
program.
• There should be multiple cross checking of GST bills while
filling GSTR, so that chances of having any error becomes
minimum.

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 FINDINGS

• CCL have a proper distribution system of coal.

• Public sector companies are the major consumer of coal.
• Around 50 lakh tons of coal is sold by CCL monthly.
• CCL pays GST to the Government on monthly basis.
• It is done by uploading GST bills to GSTN by day 7 of next
month and then paying the GST amount by day 10 of that
month.
• Input Tax Credit is also taken into consideration while
paying GST.
• CCL pays around 300 crore rupees annually as GST to the
Government.
• All these processes are managed and controlled by
taxation department of CCL.

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 REFERENCES
Books-
GST IN INDIA
– by Pinaki Chakraborty

Websites-
http://centralcoalfields.in
https://timesofindia.indiatimes.com
https://www.wikipedia.org

CCL ANNUAL REPORT last five years

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