Envis Centre, Ministry of Environment & Forest, Govt. of India

Printed Date: Saturday, November 25, 2017

FAQS

Q. What does ENVIS stands for?
Ans: Environmental Information System.

 

Q. What is ENVIS?
Ans: "ENVIS is a decentralised system with a network of distributed subject oriented Centres ensuring integration of national efforts in environmental information collection, collation, storage, retrieval and dissemination to all concerned. Presently the ENVIS network consists of Focal Point at the Ministry of Environment and Forest and ENVIS Centres setup in different organisations/establishments in the country in selected areas of environment. These Centres have been set up in the areas of pollution control, toxic chemicals, central and offshore ecology, environmentally sound and appropriate technology, bio-degradation of wastes and environment management, etc.
ENVIS focal point ensures integration of national efforts in environmental information collection, collation, storage, retrieval and dissemination to all concerned. "

 

Q. What are the main objectives of MINENVIS ?
Ans: "The Primary Objective of this Centre is to Collect, collate, store and disseminate information related to mining environment. Other important Objectives include:

  • Maintaining Computerised Database on published literature on various subject areas related to mining environment which users can query from time to time.
  • Development of a Documentary resource base which will have environmental journals, environmental reports/technical papers, books related to mining environment, seminar proceedings or any other relevant document related to mining environment which user can consult by personal visit or through post requesting for specific information.
  • Organizing short-term training programmes/workshops to increase environmental awareness in the mining industry."

 

Q. What are the activities of ENVIS Centre, MINENVIS ?
 

Ans: Maintains a database management system to cater to the requirements of various users/ stakeholders of the mineral industry and regularly publishes Newsletters and Monographs.

 

Q. Total production of coal?
Ans:  Production of Coal during 2010-11 is  537 Million tones

 

Q. Coal production in India year wise?
Ans:  Production of Coal

 

Mineral Unit 2006-07 (R)
2007-08 (R)
2008-09 (R)
2009-10 (R)
2010-11(R)
Qty
Value
Qty Value
Qty Value Qty Value Qty Value
Coal M.ton 431 34836.79 457 38464.56 493 45537.02 532 49081.52 537 49011.64

 

(R) - Revised figures; (P) - Provisional and based on monthly returns to the extend available with IBM;
(E) - Estimated figures; M.Ton - Million tonnes
(Value in Rs. Crores)

 

Q. Ambient Noise Standards
Ans: Noise (ambient standards) published in the Gazette No. 643 dt 26.12.89, succeeded by The Noise pollution (Regulation and Control) rules, 2000 (Gazette of India, vide SO123(E), dated 14.2.2000 and subsequent amended vide SO 1046(E) dated, 22.11.2000).

 

Area Code Category of area Limits in dB (A) Leq
Day time Night time
A Industrial area 75 70
B Commercial area 65 55
C Residential area 55 45
D Silence zone 50 40

 

Note-1: Day time reckoned in between 6.00 am to 9.00p.m
Note 2: Night time reckoned in between 9.00p.m. to 6.00am
Note 3: Silence zone is defined as areas up to 100 meter around such premises as Hospitals, Educational institutes, and Courts. The Silence zones are to be declared by the competent authority.
Note 4: Mixed categories of areas should be declared as "one of the four above mentioned categories" by the Competent Authority and the corresponding standards shall be applied.

 

Q. Please write us ‘Air quality standards for mining areas’


Ans:    Air quality standards for mining areas

 

Category Pollutant Time weighted average Concentration in Ambient Air Method of Measurement
( I ) Category Pollutant Time weighted average Concentration in Ambient Air Method of Measurement Suspended Particulates Matter (SPM) Annual Average*
24 hours**
360 µg/m3
500 µg/m3
High Volume Sampling (Average flow rate not less than 1.1 m3/minute)
Respirable Particulate Matter (size less than 10 µm) (RPM) Annual Average*
24 hours**
180 µg/m3
250 µg/m3
Respirable Particulate Matter sampling and analysis
Sulphur Dioxide (SO2) Annual Average*
24 hours**
80 µg/m3
120 µg/m3
1. Improved West and Gaeke method
2. Ultraviolet fluorescence
Oxide of Nitrogen as NO2 AnnualAverage*
24 hours**
AnnualAverage*
24 hours**
80 µg/m3
120 µg/m3
1. Jacob & Hochheiser Modified (Na-Arsenic) Method
2. Gas phase Chemilumine-scence
( II ) Existing coal fields/mines given below:
Karanpura,  Ramgarh, Giridih, Rajhara,  Wardha, Nagpur,  Silewara, Pench Kanhan, Patharkhera, Umrer, Korba, Chirimiri, Central India Coalfields (including Baikunthapur, Bisrampur), Singrauli,  Ib Valley, Talcher, Godavary-Valley and any other coalfield
Suspended Particulates Matter (SPM) Annual Average*
24 hours**
430 µg/m3
600 µg/m3
High Volume Sampling (Average flow rate not less than 1.1 m3/minute)
Respirable Particulate Matter (size less than 10 µm) (RPM) 215 µg/m3
300 µg/m3
Respirable Particulate Matter sampling and analysis Respirable Particulate Matter sampling and analysis
Sulphur Dioxide (SO2) Annual Average*
24 hours**
80 µg/m3
120 µg/m3
1. Improved West and Gaeke method
2. Ultraviolet fluorescence
Oxide of Nitrogen as NO2 Annual Average*
24 hours**
80 µg/m3
120 µg/m3
1. Jacob & Hochheiser Modified (Na-Arsenic) Method
2. Gas phase Chemiluminescence
( III ) Coal mines located in the coal- fields of- Jharia- Raniganj- Bokaro Suspended Particulates Matter (SPM) Annual

Average

*24 hours**
500 µg/m3

700 µg/m3
High Volume Sampling (Average flow rate not less than 1.1 m3/minute)
Respirable Particulate Matter (size less than 10 µm) (RPM) Annual

Average

*24 hours**
250 µg/m3



300 µg/m3
Respirable Particulate Matter sampling and analysis
Sulphur Dioxide (SO2) Annual

Average

*24 hours**
80 µg/m3



120 µg/m3
1. Improved West and Gaeke method
2. Ultraviolet fluorescence
Oxide of Nitrogen as NO2 Annual Average
*24 hours**
80 µg/m3
120 µg/m3
1. Jacob & Hochheiser Modified (Na-Arsenic) Method
2. Gas phase Chemiluminescence

 

Note: * Annual Arithmetic mean for the measurements taken in a year, following the guidelines for frequency of sampling laid down in clause 2.
** 24 hourly/8 hourly values shall be met 92% of the time in a year. However, 8% of the time it may exceed but not on two consecutive days.
Unauthorised construction shall not be taken as a reference of nearest residential or commercial place for monitoring.

 

Q. What are standards for effluents for coal mines to be discharged
Ans:    Standards for Effluents for Coal mines to be discharged into Sewer, Stream, or Lands

S.N. Parameters  Concentration not to exceed.
 1 pH  5.5 to 9.0
 2  Chemical Oxygen Demand (COD)  250 mg/L
 3  Total Suspended Solids (TSS)  100 mg/L-200 mg/L (Land for irrigation)
 4  Oil & Grease (O&G)  10 mg/L

 

(Monitoring frequency of these parameters shall be once in a fortnight)
Optional parameters: All other parameters indicated in the general standards for discharge of environment pollutants under Schedule VI, shall be in addition to the effluent standards specified under clause 3. (Monitoring frequency shall be once in a year for the optional parameters).

 

Q. What is physical properties of water


Ans:    Physical Properties of Water

 

Density (25 oC), kg/m3 997.075
Density (20 oC), kg/m3 998.20
Density (100 oC), kg/m3 958.40
Maximum density, kg/m3 1000.00
Temperature of maximum density, oC 3.94
Viscosity (25 oC), Pa/s 0.890 x 10-3
Kinematic viscosity (25 oC), m2/s 0.89 x 10-6
Melting point (101, 325 Pa), oC 0.00
Boiling point (101, 325 pa), oC 100.00
Latent heat of ice, kJ/mol 6.0104
Latent heat of evaporation, kJ/mol 40.66
Specific heat capacity (15 oC), J/kg.oC 4186
Thermal conductivity (25 oC)m, J/cm.s.oC 0.00569
Heat of vaporization, J/kg 2.435 x 106
Surface tension (25 oC), N/m 71.97 x 10-3
Surface tension (20 oC), N/m 72.75 x 10-3
Surface tension (0 oC), N/m 75.64 x 10-3
Dielectric constant (25 oC) 78.54
Vapour pressure (20 oC), torr 17.535

 

Q. water quality criteria for bathing mine water


Ans: Primary Water Quality Criteria for Bathing Water

 

CRITERIA RATIONALE
1) Fecal Coliform MPN/100 ml 500 (desirable)2500 (Maximum permissible) To ensure low sewage contamination. Fecal coliform and fecal streptococci are considered as they reflect the bacterial pathogenicity.
2) Fecal Streptococci MPN/100 ml 100 (desirable)500 (Maximum Permissible) The desirable and permissible limits are suggested to allow for fluctuation in environmental conditions such as seasonal change, changes in flow conditions etc.
3) pH Between 6.5-8.5 The range provides protection to the skin and delicate organs like eyes, nose, ears etc. which are directly exposed during outdoor bathing.
4)  Dissolved Oxygen: 5 mg/L or more The minimum dissolved oxygen concentration of 5 mg/l ensures reasonable freedom from oxygen consuming organic pollution immediately upstream which is necessary for preventing production of anaerobic gases (obnoxious gases) from sediment.
5) Biochemical Oxygen demand 3 day, 270C 3 mg/L or less The Biochemical Oxygen Demand of 3 mg/l or less of the water ensures reasonable freedom from oxygen demanding pollutants and prevent production of obnoxious gases".









 

Health, Safety & Welfare of Miners

 

 

Q. What are the Existing Legislative Provisions regarding safety, health and welfare of mine workers?

  • Under the Constitution of India, safety, welfare and health of workers employed in mines are the concern of the Central Government (Entry 55- Union List- Article 246).
  • The objective is regulated by the Mines Act, 1952 and the Rules and Regulations framed thereunder which are administered by the Directorate- General of Mines Safety (DGMS), under the Union Ministry of Labour and Employment.
  • A list of the subordinate legislation under the Mines Act administered by DGMS are –
    • Coal Mines Regulations, 1957.
    • Metalliferous Mines Regulations, 1961.
    • Oil Mines Regulations, 1984.
    • Mines Rules, 1955.
    • Mines Vocational Training Rules, 1966.
    • Mines Rescue Rules, 1985.
    • Mines Creche Rules, 1966.

 

Q. How the Compliance of the Provisions are ensured?

Ans: The owner, agent or manager of the mine is required to comply with the provisions of health and safety provisions of the Mines Act and the rules framed thereunder, as required under Section 18 of the Mines Act, 1952.

 

Q. How the Provisions of Health, Safety and Welfare Amenities are enforced?

Ans: DGMS is the enforcement agency which ensures compliance of the stated provisions through inspections by inspecting officers. The health, safety and welfare provisions of Mines Act and Rules are invariably checked during the course of general inspection of the mines. The violations observed during the course of general inspection of the mines. The violations observed during the course of such inspections are being followed up by subsequent follow up inspection. In case of noncompliances, the improvement notices, prohibitory orders etc. are also being issued till it is complied.

 

Q. What is the Role and Function of DGMS?

  1. Inspection of mines.
  2. Investigation into –
    1. accidents
    2. dangerous occurrences – emergency response
    3. complaints & other matters
  3. Grant of –
    1. statutory permission, exemptions & relaxations - pre-view of project reports & mining plans
    2. approval of mine safety equipment, material & appliances
    3. complaints & other matters
  4. Interactions for development of safety equipment, material and safe work practices through workshop etc.
  5. Development of Safety Legislation & Standards
  6. Safety Information Dissemination.
  7. Conduct of examinations for grant of competency certificates.
  8. Safety promotion initiatives including :
    • Organisation of –
      1. Conference on Safety in Mines
      2. National Safety Awards
      3. Safety Weeks & Campaigns.
    • Promoting –
      1. Safety education and awareness programmes
      2. Workers’ participation in safety management through - Workmen’s inspector, Safety committee and Tripartite reviews
      3. Safety Weeks & Campaigns.

 

For More FAQS on DGMS: CLICK HERE

 

Q. What are the provisions of law in respect of accidents in mines?

Ans: Following provisions are existing in the Mines Act & the Rules & Regulations made thereunder on accidents in mines:
Section 23 of the Mines Act5, 1952: Notice of Accidents
Notice of accidents by the mine management of DGMS
Enquiry in to such accident by DGMS

Regulation 9: Prescribes nature of accidents and the forms in which notices are to be sent to specified persons which include Coal Mines Welfare Commissioner in cases of Fatal and Serious accidents.
Regulation 199: Places of accidents not to be disturbed unless otherwise permitted by Chief Inspector or Inspector.
Regulation 199A: Enforcement of Emergency Plan in the mine immediately after occurrence of accident.
Section 24: Power of Central Govt. to appoint court of inquiry in cases of Accidents:
Central Government normally appoints court of inquiries in cases of major accidents and disasters in mines.

Q. What are the major cases of accidents in mines?

Ans: Coal mines are considered more risky than Metalliferous mines all over the world. The incidences of accidents and number of fatality in coal mines are higher than non-coal mines.

The major causes of accidents in mines are :-

Explosions and Fires : Methane & Coal Dust Explosions
Spontaneous Heating of Coal
Inundation (Sudden inrush of water into the mines : From surface
Underground
Strata Failure : Roof and Side Fall in Underground Mines
Pit and Dump Slides & Failure in opencast mines
Heavy Earth Moving machinery : Shovel, Dumper, Trucks & Tippers

 

Q. What steps are being taken by the Government to prevent such accidents in mines?

  1. All fatal and serious accidents including dangerous occurrences especially due to fires, explosives, gases and many other important subjects are enquired by DGMS.
  2. After completion of enquiries, legal actions as deem fit including prosecution against the persons found responsible for the accidents are taken.
  3. Accidents are also technically analyzed in details and based on findings of such analysis, technical circulars, instructions and guidelines are issued on various causes and failures to improve the standards of safety in mines and to prevent such recurrences.
  4. Accident Prone Mines are also identified on the basis of such analysis and focal attentions are given on such mines through inspections and follow up action so that their conditions are brought to safe levels.

 

Q. What are the Remedial measures taken to bring down the rate of accidents in Mines?

  1. Strict enforcement of existing statute.
  2. Close monitoring of the working of the mines by Safety Supervisors in the mines, Internal Safety Organisation of the mining companies and by the Inspecting officers of DGMS.
  3. Taking suitable actions as per the statute for non-compliance such as stoppage of work, issue of violation letters, issue of prohibitory notices/orders, launching of prosecutions under the court of law etc.
  4. Strengthening the mechanism of training & re-training or workers & supervisors.
  5. Inquiry into accidents, analysis for ascertaining the causes and circumstances leading to accidents and taken suitable action for preventing similar accidents in future.
  6. Introducing the concept of Safety Management through risk assessment for identification of hazards, assessment of risks in the hazards, evolving control measures, implementation of control measures and monitoring the effectiveness of the control measures through safety audit. This is a new concept and is being introduced gradually in conjunction with existing practices of legislative safety management. Workers at all levels are involved in the process of decision making on risk management for its effective implementation through greater involvement.
  7. Improving the awareness of workers at all levels regarding safety issues involved in the work process and the safe operating procedures for each job.

 

Q. What are the Legislative Provisions relating to Safety and Health in industries?

Ans: The safety, health and welfare or workers employed in factories are covered under the Factories Act, 1948 which is a central legislation. The Act contains detailed provisions on health, safety welfare, working hours, leave, penalties etc. and is applicable to premises wherein 10 or more workers are employed without the aid of power.

The State Governments are empowered under Section 85 of the Act to bring those factories wherein less than 10 workers with the aid lf power or 20 or more workers are employed without the aid of power under the purview of this Act.

The provisions of the Factories Act and Rules framed thereunder are enforced by the State Governments through the State Factories Directorate/Inspectorates.

 

Q. What are the important provisions in the Factories Act?

Ans: The important provisions in the Factories Act, 1948 relates to

  • Appointment of Inspectors,
  • Responsibility of the Occupier and Manufacturer of Articles used in factories, (This provisions was incorporated in 1987 after the Bhopal Tragedy)
  • Health Provisions
  • Safety provisions
  • Welfare Provisions
  • Working Hours
  • Employment of Young Persons
  • Annual Leave With Wages
  • Special Provisions (power to apply the Act to certain premises, dangerous operations, notice of accidents and occupational diseases, power of enquiry, etc.)
  • Penalties and Procedures
  • The important provisions relating to Safety and Health of workers are given below

 

Health Provisions

Every factory must take the following measures as per the provisions of the Act to ensure health of the workers.

  • To keep its premises in a clean state;
  • To dispose of wastes and effluents:
  • To maintain adequate ventilation and reasonable temperature;
  • To prevent accumulation of dust and fume;
  • To avoid over crowding;
  • To provide sufficient lighting, drinking water, latrines and urinals.

 

Safety Provisions

Every factory must take the following measures as per the provisions of the Act to ensure safety of the workers

  • to fence certain machinery;
  • to protect workers repairing machinery in motion;
  • to protect young persons working on dangerous machines;
  • to ensure hoists and lifts and pressure vessels are of sound construction and maintained in good working conditions;
  • Floors, stairs and means of access in every factory shall be of sound construction and properly maintained to ensure safety of the works.
  • to protect workers from injury to their eyes;
  • to protect workers from dangerous dust, gas, fumes and vapours;
  • to protect workers from fire, explosives or flammable dust or gas, etc.

 

Q. What are the powers of the Inspectors appointed under the Factories Act, 1948?

Ans: An inspector appointed under the Act has power-

  • to enter any place which is used as a factory;
  • to make examination of the premises, plant and machinery.
  • to require the production of any register and any other document relating to the factory , and
  • to take statement of any person, for carrying out the purposes of the Act.
  • To initiate legal action for violation or non compliance of the provisions of the Act and Rules made thereunder.

 

Q. What is the system of reporting of occupational diseases in the Factories?

Ans: Where any workers in a factory contacts any notifiable disease as specified in the Third Schedule the manager of the factory shall send a notice to inspector of factories in such a form and in the manner prescribed (Section 89).

 

Q. What actions are initiated against the management for violation of the provisions of the Act?

Ans: The inspectors visit the factories and violations of the provisions of the Act and the Rules framed thereunder are brought to the notice of the occupier/manager for taking necessary actions particularly when building, machineries and equipment are likely to lead conditions detrimental to the health and safety of the workers.

The inspectors also have power to prohibit employment on account of serious hazards, initially for a period of three days.

The occupier is directed to remove the hazard before re-employing the workers.

In case the occupier/manager do not abide by the written order issued by the inspector prosecution is initiated for the violation of any of the provisions of Act and Rules. (Powers of Inspectors are given in Section 9, 40-A and Section 87-A).

 

Q. What are the major initiatives taken by DGFASLI to improve safety and health of the workers in the manufacturing sector?

Ans: The major initiatives undertaken by DGFASLI are:

  • DGFASLI undertook the framing of model factories rules in consultation with the Chief Inspector of Factories/Union Territories for guidance and adoption by the State Governments to ensure uniformity.
  • Organizes annual conference of Chief Inspector of factories.
  • National and consultancy studies are undertaken to assess the status of occupational health of the workers in factories and ports to formulate appropriate standards/guidelines for inclusion in the statutes.
  • Conducts professional and academic training programmes for supervisors, safety officers, factory medical officers, specialised certificate course for competent supervisions in hazardous process industries.

 

 

 

GST - Mining

 

 

Q. Can small mining leaseholders with a turnover less than Rs.75 lacs operate under composition scheme?

Ans: As per Sec. 10(1) of the CGST Act, 2017, a registered person whose aggregate turnover in the preceding FY did not exceed Rs.75 lakhs, would be eligible for paying GST under the composition scheme.

 

Q. What is the GST rate for minerals and ores in Composition Scheme?

Ans: In a case where the process amounts to manufacture, the rate of tax will be 1% (CGST) and 1% (SGST/UTGST). In any other case, the rate will be ½% (CGST) and ½% (SGST/UTGST).

 

Q. Will they have to deposit GST under SGST/ CGST heads separately?

Ans: Yes. GST has to be paid separately under CGST and SGST/UTGST by generating a single challan through the common portal under a single return.

 

Q. Can a small Mine Lease holder undertake inter-State supply if it avails composition scheme?

Ans: No. If a supplier chooses to avail of composition scheme, he shall not undertake inter-State supply.

 

Q. What is the IGST rate for minerals and ores in case of inter – State supply?

Ans: At present, the IGST rate is the sum of CGST and SGST/ UTGST rate. These rates have been notified and are available in public domain.

 

Q. Can the buyer get input credit on the supply of minerals from a mine owner in composition scheme?

Ans: No,the buyer cannot avail of the credit of tax paid by the supplier who is under the composition scheme as the person paying tax under composition scheme cannot issue a tax invoice and collect taxes on his supplies.

 

Q. Will the recipient have to pay tax under reverse charge?

Ans: GST on reverse charge mechanism is payable under section 9(4) of the CGST Act, 2017 only in case of purchases from unregistered suppliers. As the mine owner who is paying tax under composition scheme is registered, the recipients need not pay GST on reverse charge mechanism.

 

Q. What is the threshold limit and conditions when a small mine owner/lease holder under Composition Scheme has to migrate into full GST System?

Ans: As per section 10(3) of the CGST Act, 2017, the option availed of by the small mine owner/lease holder shall lapse with effect from the day on which his aggregate turnover during a financial year exceeds Rs. 75 lakhs. For details regarding other conditions, section 10 of the CGST Act, 2017 and the rules framed there under may be referred to.

 

Q. Is the Return filing and compliance simpler under composition scheme?

Ans: Yes, Return filing and compliance is simpler under the composition scheme. The registered person has to file only one return on a quarterly basis in Form GSTR-4.

 

Q. Will the basic exemption limit from GST be applicable to the tiny & micro segment in mining?

Ans: Yes, the basic exemption limit of Rs. 20 lakhs (Rs.10 lakhs in the case of special category States) is applicable to the tiny and micro segment even in mining. However, a person engaged in making taxable supply and having aggregate annual turnover (more than Rs.20 lakhs in any State other than the special category States) would be liable to obtain registration under GST. The return has to be filed on monthly basis by regular taxable persons and on quarterly basis by the taxable persons registered under the composition scheme.

 

Q. What is aggregate turnover?

Ans: As per section 2(6) of the CGST Act, 2017, “aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes Central tax, State tax, Union territory tax, integrated tax and compensation cess.

 

Q. Will the buyer of goods from unregistered person pay reverse tax?

Ans: A registered person receiving taxable goods or services from a supplier who is not registered, would be liable to pay GST under reverse charge mechanism. However, in terms of notification no. 8/2017-Central Tax (rate) dated 28th June, 2017, aggregate value of supplies of goods and/or service received by a registered person from any or all the suppliers, who is or are not registered, upto five thousand rupees in a day is exempt from tax under reverse charge mechanism. This exemption will not apply if the value exceeds Rs.5000/-.

 

Q. Can a buyer of goods and services pay the value of services / goods to the supplier and deposit the GST component of the invoice in the supplier’s account so that when the buyer claims input credit, he may get the same cross entry tallied from the supplier’s account?

Ans: No. This option is not available under GST Law.

 

Q. In case there are disputes regarding quality, weight, etc. between the buyer and the supplier and the goods are returned fully or partially, as found unfit for use, can the excess paid tax component be adjusted from future tax liability?

Ans: In such cases, the supplier may issue a credit note to the recipient in accordance with the provisions of section 34(1) of the CGSTAct, 2017.

 

Q. Whether deduction of Liquidity Damage (LD)/Penalty deduction from contractor’s bills and charging Penalty for non-lifting of coal till targeted minimum level to Annual Contractual Quantity (ACQ) will attract GST?

Ans: Yes, it is a service being “tolerating an act” as per Schedule II of the CGST Act,2017 thus GST shall apply.

 

Q. Will GST be payable at the time of raising an invoice for supply of goods from a mining lease holder or it will be applicable on the amount of advance received by the mining company for booking the order?

Ans: No. As per the provisions of section 12(2) of the CGST Act, 2017 the time of supply of goods shall be the date of issue of invoice or the date of receipt of payment, whichever is earlier. Accordingly, GST would be payable on advance payment received prior to issuance of the invoice.

 

Q. Will the supplier have to issue “receipt voucher” against each advance received?

Ans: Yes, as per section 31(3)(d) of the CGST Act, 2017 the supplier has to issue a “receipt voucher” for every advance received.

 

Q. How do I show the advance received in GSTR 1?

Ans: Where against an advance the invoice is issued in the same tax period, the advance need not be shown separately in Form GSTR-1 but the specified details of invoice itself can be directly uploaded on the system. Details of all advances against which the invoices have not been issued till the end of the tax period shall have to be reported on a consolidated basis in Table 11 of Form GSTR-1. As and when the invoices against these advances are issued, they have to be declared in Form GSTR-1 and the adjustment of the tax paid on advances against the tax payable on the invoices uploaded in Form GSTR-1 shall have to be done in Table 11 of Form GSTR-1.

 

Q. In case no supplies are made against an advance, will the dealer have to issue a “refund voucher” only for the advance or for advance including GST?

Ans: Refund voucher has to be made for the full value of advance, including the amount of GST.

 

Q. It will be difficult to link between “Advance Receipt Voucher” and invoices in case of sales billing on Cash Sale (Rail/Road)/e-Auction etc., especially in case of Rail Cash sale, where purchasers deposit money in advance to the tune of many crores for which lifting of coal has to be made from various loading point and time. In such situation how will the billing person at one point realize how much “balance advance” is available for adjustment while raising invoice at his end at a specific point of time?

Ans: Under GST gross amount of advance is to be reported and tax has to be paid. Advance can be adjusted in totality. While raising the invoice subsequent to receipt of advance, the tax payable will get reduced by the amount of tax paid on the advance and balance amount of advance may be adjusted against future supplies.

 

Q. Will GST charged on purchase of all earth moving machinery including JCB, tippers, dumpers by a mining company be allowed as input credit?

Ans: The provision of Sec. 17(5) (a) of the CGST Act, 2017 restricts credit on motor vehicle for specified purposes listed therein. Further, in terms of the provision of Section 2(76) of the CGST Act, 2017 the expression ‘motor vehicle’ shall have the same meaning as assigned to it in Clause (28) of Section 2 of the Motor Vehicle Act, 1988, which does not include the mining equipment, viz., tippers, dumpers. Thus, as per present provisions, the GST charged on purchase of earth moving machinery including tippers, dumpers used for transportation of goods by a mining company will be allowed as input credit.

 

Q. Whether GST is payable on royalty (to be paid to Government)for Mining Lease granted by State Govt.?

Ans: Yes, on royalty GST will apply under reverse charge mechanism. Further, such payment of GST under reverse charge mechanism would be eligible as ITC in the hands of the recipient of supply for payment of GST.

 

Q. Is ITC available on hiring of immovable properties (land, office, warehouse, processing unit, stock yards) for facilitation of mining operations?

Ans: Yes. GST paid on hiring of land, office, warehouse, processing unit, stock yards when these are used in the course or furtherance of business, would be allowed as ITC.

 

Q. What is the time limit for availing input credit under GST?

Ans: As per provisions of Section 16(4) of the CGST Act, 2017 the ITC is not available after the due date of furnishing the return for the month of September of the next year or furnishing of the annual return, whichever is earlier.

 

Q. Would the net outstanding amount of unutilised input credit be refunded by the Government?

Ans: In terms of the provision of Section 54(3) of the CGST Act, 2017 subject to conditions, refund of unutilized input tax credit would be available in respect of zero rated supply or where ITC has accumulated on account of rate of tax on inputs being higher than the rate of taxon the output supply. However, such refund of ITC would not be available if export duty is payable on the goods so exported out of India.

 

Q. Will GST charged by tax consultants, advocates, Chartered Accountants, environmental consultants, canteen service providers and other service providers to mining companies be allowed as input credit?

Ans: ITC on any input service/ inputs used in the course or furtherance of business would be available subject to restrictions and other conditions as per the provisions of Chapter-V of the CGST Act, 2017. However, tax paid in respect of canteen service providers shall not be available as credit.

 

Q. Whether free issue of coal to employees paid in course of employment and on the basis of wage agreement with value below Rs.50, 000/- per employee will attract GST?

Ans: Gifts not exceeding fifty thousand rupees in value in a financial year by an employer to an employee shall not be treated as supply of goods or services or both (as per Schedule 1 of the CGST Act, 2017). Free issue of coal based on the wage agreement is not a gift. Therefore, free issue of coal in this case will attract GST.

 

Q. Can GST charged as per transport bilti on movement of mineral from mine to the buyer be allowed as ITC to the buyer irrespective of the ownership of the transporting vehicle?

Ans: In case of an FOR contract for supply of mineral from the mine to the buyer, it is a composite supply where the consideration will be inclusive of the transportation cost. Therefore, GST on forward charge will be payable by the supplier of the mineral and credit will be available to the buyer if otherwise available. The supplier of the mineral will also pay tax on reverse charge basis on the freight charged by the GTA and the credit of the same will be available to the supplier of the mineral.
In case of an ex-works contract of supply, where the GTA service has been booked by the supplier at the instance of the buyer and the service is billed by the GTA to the buyer and the minerals are billed by the supplier of the mineral to the buyer, then GTA on reverse charge shall be paid by the buyer who shall be entitled to take credit of the same. The tax on the mineral will be paid on forward charge by the supplier of the mineral and credit will be available to the buyer if otherwise available.

 

Q. Will the situation as mentioned above be different if the value of mineral is less than the cost of freight in long distance consignments?

Ans: In the aforesaid example relating to FOR contract, the supply under the contract shall be classified as ‘composite supply’ where there is a principal supply and other supplies are naturally bundled and supplied in conjunction with each other in the ordinary course of business. The GST rate of principal supply shall be applicable in this case i.e. GST rate as applicable to the mineral.

 

Q. Exploration companies undertake exploration activities for preparing mining blocks for auction in different States in the country. They use rigs for exploration. CENVAT credit was available on rig operations under the existing law. Will the company be eligible to take ITC under GST?

Ans: Rigs, capitalized in the books of accounts as capital goods are used in the course or furtherance of business. Hence, it will be eligible as capital goods and ITC will be available under GST.

 

Q. Will ITC be available for holding Environmental Clearance (EC) and Forestry Clearance (FC) meetings and for obtaining ‘consent to operate’ the Mines?

Ans: Yes, ITC on expenses incurred in the course or furtherance of business shall be available.

 

Q. Will the mining companies be eligible to take ITC for construction of townships, hospitals and schools?

Ans: No. Mining companies will not be eligible for ITC on such activities even if used in course or furtherance of business. In this connection, the provisions contained in section 17(5) (c) of the CGST Act, 2017 refer.

 

Q. Are minerals sent for export in processed or raw form fully exempted from payment of GST or IGST?

Ans: In terms of the provision of Section 16(1) of the IGST Act, 2017 export of goods is considered as zero rated supply. Further, in terms of the provision of Section 16(3) of the IGST Act, 2017 a registered person may export goods (i) without payment of IGST against bond/letter of undertaking and claim refund of unutilised ITC, or (ii) on payment of IGST,utilising eligible ITC and claim refund of such IGST.

 

Q. What is the procedure for return of goods under GST?

Ans: In terms of Section 34(1) of the CGST Act, 2017 in case of return of goods on which GST was paid at the time of supply, the supplier of such goods may issue a credit note for the full value, including the amount of GST in favour of the recipient, and will be entitled to reduce his output tax liability subject to the condition that the recipient of such supply has not availed credit of such GST and if availed, has reversed his ITC on the same.

 

Q. How can we take support during filing of returns, as huge mines are located throughout the districts in the country, especially in rural and backward areas, and the problem will be aggravated as the huge number of mines are operating without any IT infrastructure?

Ans: Returns may be filed from the central office of the Company which are usually located in areas with infrastructure required for filing such returns.

 

Q. Whether GST TDS will be applicable on Works Contract Jobs (to be renamed as Supply of Services) in case of PSUs, since such GST TDS U/s 51 (1) of CGST Act. 2017 is applicable on: a) Dept. or establishment of the Central Govt. or State Govt.; or b) Local authority; or c) Govt. agencies; or d) Such persons or category of persons as may be notified by the Govt. on the recommendations of the Council.

Ans: TDS, under section 51 (1) of the CGST Act, 2017 will apply to supplies made to such agencies as may be mandated by the Government for TDS. As of now, this section has not been notified and therefore TDS is not applicable on any supplies.

 

Q. What is the requirement for E-way bill for companies operating in the sector?

Ans: As per rule 138 of the CGST Rules, 2017, till such time as final rules are issued, the Government may, by notification, specify the documents that the person incharge of a conveyance shall carry while the goods are in movement or in transit storage. As and when the new e-way bill rules are notified, the person transporting the goods shall carry the said e-way bill generated from the common portal along with the invoice (challan in the case of movement other than by way of supply).

 

Q. Whether an Input Service Distributer (ISD) will be eligible to distribute the ITC in respect of services received during April 17 to June 17 even if the invoices are raised and submitted by contractors after appointed date i.e. in July 17.

Ans: In terms of section 140(7) of the CGST Act, 2017 the ISD will be able to distribute the available credit even if the invoices are received after the appointed day.

 

Q. In Table 5(b) of GST-TRAN-1, the details of Form C, F and H/I are to be given for the period April 15 to June 17 (i.e. for 27 months) which would be a voluminous task. Reasons of furnishing the details for last 27 months may please be clarified?

Ans: In cases where sales were covered by Forms C, F,H and I, the input tax credit has remained in the account of the taxpayer because the taxpayer has availed of the benefit of concessional rate/nil rate of tax on the sale/ stock transfer under CST Act. The benefit of concessional rate/nil rate is available conditional upon production of the statutory forms. Therefore,allowing migration of the credit that has accrued on account of sale/stock transfer having been made on concessional rate/nil rate should be given only on production of the statutory forms. Even otherwise, the taxpayer would have claimed refund of this ITC and such refund would have been given only on production of the statutory forms. It has been presumed that forms for periods before April ‘15 would have either been presented or the State would have recovered the additional tax payable on account of non-production of statutory forms. Production of these forms is a statutory liability and the taxpayers have already availed the benefit.

 

Q. Education Cess and S&H Education Cess carried forward in ER-1 – whether eligible for ITC under the CGST Act, 2017?

Ans: No. Credit of Education Cess and SH Education Cess cannot be carried forward.

 

Q. What will happen to the balance available in the current account (PLA) under Central excise, deposited in cash in advance by any assesse?

Ans: Balance in PLA will not be under transition to GST since that has not been appropriated to the Government account which will be determined post completion of the pending assessment. The same can be claimed as refund under the Central Excise Law.

 

Q. Whether credit of Green Cess (Clean Energy Cess) paid on coal and available at the time of transition be eligible for being carried over?

Ans: No.Credit of Clean Energy Cess cannot be carried forward on transition.

 

Q. Whether stock held by mining companies on which Clean Energy Cess has been paid be chargeable to compensation cess in GST regime?

Ans: Yes.Compensation cess will be charged on supply of such stock.

 

Q. Can supplies of coal under a particular order or under FSA (Fuel Supply Agreement) be eligible under the definition of ‘continuous supply of goods?

Ans: Such supplies are in the nature of continuous supply as the invoices are raised periodically. The individual dispatches may be covered under delivery challans and invoice may be issued for the supplies made during a period as per the contract.

 

Q. In case of coal, the applicable Compensation Cess is a Fixed Amount of Rs.400/- per MT. Under above situation, how such apportionment is possible since in case of FSA Sale, supply of different grade of coal as per availability of stock against single bulk receipt of “Advance” is to be adjusted?

Ans: If tax rate is not determinable, the tax rate may be determined and paid on the amount of advance at 18%.

 

Q. Whether Railway siding in mining industry exclusively utilized for effecting dispatch of taxable goodsvz.coal (i.e. directly used in the course or furtherance of business) will be treated as Plant and Machinery and ITC under GST will be allowed or treated as civil structure and ITC will be denied?

Ans: ITC will not be available as railway siding is not plant and machinery as defined in section 17 of the CGST Act, 2017.

 

Q. According to HSN Code 2516 calcareous building stone comes under 5% tax rate, but simultaneously under HSN Code 6802 it comes under 28% tax rate. Clarity on the same may be provided by the Government

Ans: Chapter 68 covers value added articles of sandstone etc. which are further worked other than by way of roughly trimmed or merely cut into blocks or slabs.

 

Q. Whether supply of HSD free of cost for mining operation would attract GST and whether the input tax credit would be available for GST so charged by the Service provider?

Ans: HSD is outside GST and therefore, input tax credit would not be admissible.

 

Q. Will ITC be available on steel, timber and sometimes cement which are used in the underground mines to provide a protective device for security purpose?

Ans: Credit will not be available if these goods are supplied for construction of an immovable property. But if these are temporarily placed for protective purposes, credit will be available.

 

Q. As per Section 54 (3), it is clear that no refund of ITC will be available for export in the cases where product is subject to export duty. Iron Ore export is subjected to export duty. In the earlier regime, the exporters were allowed to take refund of service tax paid on exports. Will not ourexports become uncompetitive as no refund of ITC will be available?

Ans: The refund of ITC credit is not admissible in view of the second proviso to section 54(3) of the CGST Act, 2017.

 

Note: Reference to CGST Act, 2017 includes reference to SGST Act, 2017 and UTGST Act, 2017 also.

GST - Mining