Implication Of GST on National Cement Pipes

Project Report

Submitted to
Savitribai Phule Pune University
For the partial fulfillment of the
degree Bachelor of Business
Administration (Finance)

By
Thorat Arnav Abhijit

B. Y. K. (Sinner) College of Commerce, Nashik - 5

TYBBA Roll No 153 Seat No.
Year: 2024 – 2025

Guide
(Mrs. Rama Yadav)

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University Exam Seat No:

Gokhale Education Society’s

B.Y.K. College of Commerce

Prin. T. A. Kulkarni Vidyanagar, Nashik – 5.
‘NAAC’ Re-Accredited
and ISO Certified
College

Certificate
This is to certify that Mr. Rajit Sanjeev Sharma of TYBBA, Roll No .153 has undertaken and
completed a Project titled “Implication of GST at National Cement Pipes” as per the rules of Savitribai
Phule Pune University for the year 2024- 2025.

Date: / /2024 Project Guide Coordinator BBA&BBA(IB)

(Mrs. Rama Yadav) (Dr. Sushumna Kane)

Date: / /2024 Internal Examiner External Examiner

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ACKNOWLEDGEMENT
I have pleasure in successful completion of this work titled “Implication of GST at National
Cement Pipes” The special environment at B.Y.K. College of Commerce, Nashik that always
supports educational activities, facilitated my work on this project.

I greatly appreciate the motivation and understanding extended for the project work, by
Mr. Avinash Gunjal and the staff of the surveyed business unit, who responded promptly and
enthusiastically to my requests for frank comments despite their congested schedules. I am
indebted to all of them, who did the best to bring improvements through their suggestions.

I thank Principal Dr. G.V Kayande Patil for his encouragement extended for this study. I am
very much thankful to Mrs. Rama Yadav for her encouragement and guidance for this project
work. It would not have been possible for me to complete this work without her suggestion on
every part of this work.

I acknowledge the authors; whose works gave me insight and information related to this subject.
I am thankful to Library staff and administrative staff of the BYK College who directly, or
indirectly, have all been helpful in one way or another. I thank my parents who encouraged me
to extend my reach with their help and support; I have been able to complete this work.

Date: Signature
Thorat Aranav Abhijit

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Index

S. No Particulars Page No
A Title Page Not
numbered
B Certificate by College I
C Certificate by Organization II
D Acknowledgement III
E Contents/Index IV
1. Introduction 5-10
2 Organization Profile 11-13
3 Product/Service Profile 14-16
4 Theory related to topic 17-21
5 Data Analysis & Interpretation 22-27
6 Findings /Recommendation 28-29
7 Summary &Conclusion 30-32
8 Annexure 33-36
• Questionnaire V
 Bibliography VI
 Other literature to be attached VII
 Executive summary (2 pages) VIII

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CHAPTER 1- INTRODUCTION

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GST, or Goods and Services Tax, is a comprehensive indirect tax implemented in India
on July 1, 2017. Its primary goal is to simplify the taxation system by replacing various
indirect taxes such as VAT, Service Tax, and Excise Duty. GST aims to establish a
world-class tax framework and enhance tax collection efficiency. It enables seamless
credit throughout the supply chain and across states under a unified base. By doing so,
GST promotes a more transparent tax environment, benefiting both consumers and
businesses by lowering the overall tax burden and facilitating easier business operations..
GST is a comprehensive indirect tax imposed on the manufacture, sale, and consumption
of goods and services at the national level. Consumers ultimately bear the burden of
GST through their purchases. The introduction of GST has established a continuous
chain from the original producers and service providers to the retailers. This is the core
principle of GST: it taxes only the final consumer.

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 Need and Importance of GST:

1. Cost efficiency with unified taxes rate and procedures, National cement
pipes can save compliance customer.
2. Digitalization’s required digital records keeping and data which helps
to improve efficiency of National cement pipes.
3. Reduce corruption of transparency of GST helps to reduce corruption and
fraud at National cement pipes.
4. E-commerce opening up new market and opportunities, for
National cement pipes.
5. Reduce tax cascading at National cement pipes.

 Objectives:
1. Evaluate the benefits of GST on government.

2. Examine the role of GST on trading business.

3. Understand the adverse effect of GST on Trading Business.

4. Analyze the impact of GST on credit and cost management.

5. Analyze the impact of GST on prices of raw materials.

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 Research Methodology
 SCOPE OF STUDY:
1. The project is related to the implication of GST at National cement pipes.

2. The scope of the project is to understand the GST implication, benefits,

process, limitation, and challenges at National cement pipes.
3. The study is for understanding the difference between the situation after and
before GST.

 METHODS OF DATA COLLECTION

1. Research and collection of data is based on field visit and collection the
data from proprietor as well as from employee working at National cement
pipes.
2. Primary data collected via survey among customer and from owner at National
cement pipes.
3. Study of difference in market situation after and before GST on Trading Business
and analysis of the quantitative data.
4. Secondary data collected with the help of website, articles regarding to GST.
5. Historical data and organizational data collected from the proprietor of National
cement pipes.

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Name: Avinash Gunjal

Designation: Proprietor
Organization: National cement pipes.

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 Limitations of project:
1. Lack of knowledge of new taxation system among the employee.

2. Complexity of GST creates confusion.

3. To understand the term GST, it takes time and cost.

4. Finance officers are difficulties to adopt new taxation system.

5. Limited access to data.

6. It creates lack of cash flow due to digitalization.

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CHAPTER 2 – ORGANIZATION PROFILE

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 About National Cement Pipes:

Om Trading Company is a small-scale enterprise based in Nashik, Maharashtra,
specializing in trading consumer goods. Established in 1992, the company
specializes in trade of grocery items and FMCG items. It operates as a Join
Hindu business.

The company operates as a Joint Hindu Family Business, allowing shared

ownership and responsibility among its family members. The company caters to
both retail and wholesale markets, offering products to consumers as well as
other establishments like restaurants, Fast food stalls. Om Trading Company is
recognized for its focus on quality and for providing sanitary products. Its niche
lies in trading goods on credit to with its consumer. Over the years, the company
has built a reputation within the Nashik region for reliability and quality.

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 Key features of a National Cement Pipes include:

1. Product Range: Offers a wide variety of products, such as manhole covers,

Hydraulic cement tiles, rubber mold tiles, Cement pipes

2. Supply Chain Management: Efficient logistics and inventory

management systems to ensure timely restocking and minimize waste.

3. Pricing Strategy: Competitive pricing strategies to attract customers, often

including discounts, promotions, and loyalty programs.

4. Customer Service: Strong focus on customer service, including

knowledgeable staff and responsive support for inquiries and complaints.

5. Location: Base in Satpur Nashik, Maharashtra, with local operations focusing on

surrounding region.

6. Flexible Payment Options: Offering multiple payment methods, including

credit/debit cards, mobile payments, and cash, to enhance customer convenience.

7. Operating hours: The operation hours is according to the industry hours.

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CHAPTER 3: PRODUCT PROFILE

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 Product Portfolio:
National cement pipes, based in Nashik, Maharashtra, offers a range of products
focused on the cement pipes, cement tiles and manhole cover
 Following are the product sell by the National cement pipes:
1. Cement items:

National cement pipes offers a wide variety of concrete products which include various
cement tiles, cement pipes, manhole covers.

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2. Manhole covers:

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CHAPTER 4: THEORY RELATED TOPIC

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In today’s dynamic business landscape, understanding global competitors and market

trends is crucial for the success and growth of companies operating in diverse
industries.

• The goods and services (GST) have significant implication for small
businesses like National cement pipes. Key theoretical aspects of GST impact
include:

1. Simplification of Tax Structure:

2. Input Tax Credit (ITC):

3. Compliance and Filling Requirements:

The implementation of the Goods and Services Tax (GST) in India had serval
implication, both positive and negative, for National cement pipes. Here are some key
points related to the impact of GST on National cement pipes:

 Positive Implication:

1. Simplified Tax Structure: GST replaces multiple indirect taxes with a single
tax, simplifying the tax compliance process and reducing the administrative
burden.

2. Input Tax Credit (ITC): Businesses can claim input tax credit for taxes paid on
raw materials and other inputs, reducing the overall tax burden and improving cash
flow.

3. Increased Transparency: GST creates a more transparent tax system,

reducing opportunities for tax evasion and creating a level playing field.

4. Inter-State Trade Benefits: With GST, inter-state trade becomes easier and
more cost-effective, as the tax on inter-state supplies is reduced and there is no
need for complex tax procedures.

5. Wider Market Access: National cement pipes could expand their market reach
by registering for GST. These allowed them to sell their product across state
borders without interstate barriers.

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 Negative Implication:

1. Increased Compliance Costs: The requirement for detailed documentation

and frequent filings can increase compliance costs and administrative burdens.

2. Cash Flow Issues: While input tax credits are available, delays in refunds can
create cash flow issues, especially for businesses with substantial input tax credits.

3. Transition Challenges: Adapting to the new GST system, including changes

to accounting practices and software, can be costly and time-consuming.

4. Higher Tax Rates: If the GST rate applicable to the business’s products is higher
than the previous tax rates, it could lead to increased costs and potentially reduced
competitiveness.

5. Inventory Valuation: Under GST, changes in inventory valuation and tax

treatment can affect financial statements and profit margin.

It’s importance to note that the impact of GST on National Cement Pipes could vary
depending on the performance of the specific industry, business, and compliance
practices. Over time, as businesses adapted to the new tac system and with government
efforts to address issues, the implication for small vendors were expected to
evolve.National cement pipes often benefitted from GST simplification but needed
support to navigate the transition effectively.

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 Market Trend Analysis:

The market trend for Trading companies, including companies like National cement
pipes, shows steady growth driven by several factors:

1. Increasing Urbanization: As more people migrate to urban areas in search of

better job opportunities and living standards, cities are experiencing population
surges. This urbanization leads to higher demand for grocery products, as urban
consumers often have different purchasing habits and preferences compared to rural
populations. With busy lifestyles, urban residents favor grocery stores that provide
quick and convenient shopping options, driving the growth of modern retail formats
such as supermarkets and convenience stores.

2. Rising Middle Class: India’s middle class is expanding rapidly, contributing to

increased purchasing power and a demand for diverse grocery products. This
demographic shift leads to a greater appetite for quality, branded, and premium
products, moving away from traditional, unbranded options. As disposable incomes rise,
consumers are more willing to spend on higher-quality ingredients and international
brands, encouraging grocery stores to stock a wider range of products.

3. Changing Consumer Preferences: There has been a noticeable shift in consumer

preferences towards convenience and health. Consumers are increasingly looking
for ready-to-eat meals, organic options, and specialty health products. This trend is
driving grocery stores to innovate and expand their offerings to meet evolving tastes,
such as including plant-based alternatives and gourmet products, thereby attracting a
broader customer base.

4. Government Initiatives: Government policies aimed at supporting small businesses

and promoting digital payments are creating a more favorable environment for grocery
trading. Initiatives that encourage the development of local supply chains and fair
pricing strategies empower grocery stores to thrive. Regulatory frameworks that
support e-commerce also facilitate growth in this sector, allowing businesses to expand
their reach.

5. Technological Advancement:

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 Methodology:

The methodology of National cement pipes involves a comprehensive approach that

integrates various key components to ensure efficient operations and customer
satisfaction. It begins with market research and analysis to understand consumer needs,
preferences, and market trends, allowing the store to curate a diverse and appealing
product assortment. Establishing strong supplier relationships is essential for ensuring
quality products and reliable supply, complemented by effective inventory management
that utilizes software to track stock levels and forecast demand. A competitive pricing
strategy, informed by market analysis, helps attract customers while ensuring
profitability. To drive traffic and increase sales, a mix of traditional and digital
marketing strategies is employed, alongside a commitment to excellent customer
service, which fosters loyalty. The integration of technology, such as point-of-sale
systems and e-commerce platforms, enhances operational efficiency and customer
engagement. Financial management practices ensure healthy performance, while
compliance with legal and regulatory requirements is maintained to adhere to necessary
standards. Lastly, sustainable practices, such as eco-friendly sourcing and community
initiatives, promote ethical business operations. By focusing on these components,
National cement pipes can achieve sustainable growth in a competitive landscape.

 Recommendations:

To optimize business operations for National cement Pipes , several key strategies can be
implemented. First, enhancing inventory management through advanced systems that
utilize real-time data analytics can help track stock levels and automate reordering,
reducing wastage and ensuring popular items are available. Developing or enhancing an e-
commerce platform is crucial to meet the rising demand for online shopping, along with
improving customer engagement by leveraging CRM tools to personalize marketing
communications and loyalty programs. Optimizing the store layout and merchandising can
enhance the shopping experience, while investing in staff training to empower employees
in providing exceptional customer service is essential. Incorporating sustainable practices,
such as reducing plastic use and promoting local products, can attract environmentally
conscious consumers. Implementing data-driven decision-making based on sales data and
market trends can identify growth opportunities, while expanding the product range to
include regional specialties and health-focused items caters to diverse customer needs.
Utilizing social media for marketing, enhancing supply chain efficiency, and refining
loyalty programs can further drive customer retention. Regularly monitoring financial
performance will help identify areas for cost reduction and profitability improvement, and
engaging with the local community through sponsorships and partnerships can foster brand
loyalty. By focusing on these strategies, they can enhance operations and drive .
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CHAPTER 4: ANALYSIS AND INTERPRETATION:

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Google form link:

https://docs.google.com/forms/d/e/1FAIpQLSegLiv1-
_sjcSsS_Rq8XrknOhs1DN5pL8yqwXBJ7XzNbH0uKw/viewform?usp=sf_link

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CHAPTER 5: FINDING & RECOMMENDATION

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 Finding:

1. GST simplified the tax structure, reducing complexity.

2. Input tax credit (ITC) benefits have reduced tac liability.

3. GST has increased transparency and accountability.

4. Compliance requirement have increased administrative burdens.

5. GST rates for Grocery Items and Chocolate are 5% and 28%, respectively.

 Recommendation:

The framework of work process in the finance department should be updated with latest
technology and updated software, which will help to understand the complete process
and will give better throughput.

From the viewpoint of the consumer, they would now have pay-more tax for most of the
goods and services they consume. The majority of everyday consumables now draw the
same or a slightly higher rate of tax. Furthermore, the GST implementation has a cost of
compliance attached to it. It seems that this cost of compliance will be prohibitive and
high for the small-scale traders, who have also protested against the same. They
may end up pricing their goods at higher rates.

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CHAPTER 6: SUMMARY & CONCLUSION:

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 SUMMARY:

This report examined the implications of Goods and Services Tax (GST) on National
cement pipes, a small business in the trading industry. The findings highlighted the
challenges and opportunities presented by GST, including:

- Simplified tax structure

- Input tax credit benefits
- Increased transparency and accountability
- Compliance requirements and administrative burdens
- GST rates for Grocery products

The introduction of GST will lower product costs by allowing input tax
credits. However, the finance department may encounter difficulties
initially, as other departments may not fully understand the new tax
regulations. This will require considerable effort from the finance team to
educate and coordinate with other teams to ensure compliance. Once
everyone becomes accustomed to GST, it is anticipated that processes will
be streamlined, resulting in increased profitability and a higher profit
margin for the business.

 Conclusion

GST has significantly impacted National cement pipes, requiring adaptations to ensure
compliance and optimize benefits. By implementing the recommended strategies, the
business can:

- Enhance operational efficiency

- Reduce tax liabilities
- Improve financial planning
- Leverage technology for compliance
- Stay competitive in the market

The implementation of Goods and Services Tax (GST) in India marks a significant
move towards establishing a unified market and simplifying the indirect tax system.
While there have been initial challenges and adjustments, GST has delivered several
advantages, such as easier tax compliance, minimized tax cascading, and enhanced
transparency and accountability.

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The input tax credit mechanism has also helped reduce tax liabilities for businesses.
However, small businesses like National cement pipes have faced compliance burdens
and technical issues. To fully harness the potential of GST, policymakers must simplify
rates and processes, enhance taxpayer education, and reduce burdens. Businesses must
stay informed, invest in technology, and develop strategic financial planning. Overall,
GST has the potential to boost economic growth, increase competitiveness, and make
India a more attractive investment destination. With continuous monitoring and
improvement, GST will continue to evolve, benefiting both businesses and the
economy.

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CHAPTER 7: ANNAXURE

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Q1. Has GST implementation simplified tax filings for you?

 Yes
 No
 Not Sure

Q2. After the introduction of GST has your tax liability increased or decreased?

 Increased
 Decreased

Q3. Has GST created any issue in interstate trading?

 Yes
 No
 Not Sure

Q4. How often does your business verify it's GST compliance practices?

 Very Often
 Hardly
 Never

Q5. Has GST impacted your inventory management/valuation?

 Yes
 No
 Not Sure

Q6. What is the impact of GST on your operational cost?

 Increased
 Decreased
 No Effect

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Q7. Has GST impacted your supply chain?

 Yes
 No
 Not Sure

Q8. What was the response of customer on implementing GST?

 Positive
 Negative
 No Change

Q9. Are there any exemptions or rebate allowed for any other of the products you sell?

 Yes
 No

Q10. Has GST impacted your cash flow?

 Increased
 Decreased
 No Effect

Q11. Has GST caused a decrease in your selling price?

 Yes
 No

Q12. Impact of GST has been positive on the trading business?

 Yes
 No
Not Sure

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Q13. Did you require any external help for your tax assessment?

 Yes
 No

Q.14. Has GST increased your profit margin?

 Yes
 No

Q.15. Did you have to make any changes in your accounting method?

 Yes
 No

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CHAPTER 8: BIBLOGRAPHY

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Bibliography:

a) www.gstindia.com
b) https:cleartax.in
c) economicstimes.indiatimes.com

 BOOKS

a) GST & Applied Laws

b) Economic Times
c) GST made easy

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CHAPTER 8: EXECUTIVE SUMMARY

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The first chapter includes the introduction of the project, which in turn includes the need
and importance of the project work, its objectives and research methodology, which
includes the primary and secondary data and at last of the chapter the limitations of the
project.

The second chapter is all about the Overview on the Organizational structure of National
Cement Pipes. It includes the complete information about the organization, hierarchy
etc.

The third chapter is about the detailed study on the products produced by the National
Cement Pipes., and the photo with resource person.

The fourth chapter includes the detailed study of the topic Implementation of
National Cement Pipes.. The GST percentage used by the products produced in
the National Cement Pipes.

The fifth chapter is all about data analysis and interpretation that is based on the
questionnaires by which I conducted a survey. Also, I have tried to cover all the aspects
related to GST.

The Sixth chapter includes finding and recommendations. In Findings we elaborated the
survey response and listed it down thoroughly and recommendations were written based
on the findings i.e. what certain improvement or changes must be made according to the
peoples, organizational and entrepreneurs' opinion.

The seventh chapter is all about conclusions and short summary, conclusion is
subdivided into two headings i.e., conclusion based on learning and work which in turn
includes what all we learned about GST & effects.

The eight chapter includes annexures which contain unfilled Questioners of the survey
bibliography that in turn includes the books and websites referred, and finally has
executive’s summary which gives an overview of each chapter of the project.

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