gst in india  


VAT Service Tax India
Service Tax New Delhi
Central Excise and Service Tax
Service Tax Cenvat
Service Tax Exemption
Service Tax Tribunal

Justification of GST
Preparation for GST
Purchase Tax of GST
GST Rate Structure
VAT at the Central & State level
Goods & Services Tax Model For India
Central and State Taxes under GST
Special Industrial Area Scheme
Inter-State Transactions of Goods
Rules for CGST and SGST
Implementation of GST

GST Aluminum Industry

Indian Scenario:

The total production of Primary Aluminium in India during 2008-09 was 13.48 lac Tonnes.

Issues in context of GST:

Electricity Duty - Smelting of Aluminium is a power intensive process. Electricity is the major energy input in aluminium production and is considered to be prime factor in determining economics of aluminium production

Nearly 15870 kwh of Electricity is consumed for producing per ton of aluminium metal. Presently, set off of Electricity Duty is not available to the producers against their output liability. The Electricity Duty translates to approx Rs. 3160 per MT of Aluminium’s cost of production.

Proposal: As is evident, Electricity Duty constitutes a significant component in the Cost of Production . There is a strong case for subsuming Electricity Duty in GST, for meeting the major objectives of GST namely avoiding cascading effect of taxes, simplification and avoiding multiplicity of taxes.

Royalty:

Aluminium manufacturing is mineral based . The major mineral Input is Bauxite which is converted to Alumina in Alumina Refinery and subsequently this Alumina is smelted into Aluminium metal.

Approx. 6 MT of Bauxite is required for production of 1 MT of Aluminium Metal.

Bauxite attracts levy of Royalty which is around Rs. 78 pmt. Presently, set off of Royalty paid on Bauxite is not available to the producers against their output liability.

The Royalty translates to approx Rs 468 pmt of Aluminium’s cost of production.

Alumina: Further, approx 11 lac Tonnes of Alumina, in 2008-09, was sold as such. The Alumina’s cost of production has an inbuilt component of approx Rs 234 per MT, towards Royalty on Bauxite .

Proposal: There is a strong case for subsuming Royalty in GST, for meeting the major objectives of GST namely avoiding cascading effect of taxes, simplification and avoiding multiplicity of taxes.

 

© Sitemap | Service | Article | FAQ
Designed, developed & maintained by Webworldsolutiom.com
All right reserved. All site content is copyright.