A STUDY ON THE IMPACT OF GST ON THE

AUTOMOBILE SECTOR IN INDIA

ABSTRACT

Under the Pre GST regime, central and state governments have levied multiple
taxes on the same supply chain. There was the cascading effect of taxes, as taxes levied by
the central government, were not allowed as set off against the taxes levied by the state
government. Given the above difficulties, certain taxes have been subsumed in one tax called
the goods and service tax (GST). The Automobile sector in India is one of the greatest effects
and developing manufacturing industries after liberalization. The industry has the potential to
grow and become a major contributor to economic expansion and employment creation. The
Government of India has also known the implication of the Automobile industry in the Indian
economy and is presently occupied on Automotive Mission 2026 to be at equivalence with
the greatest nation of the world. India is also a protuberant auto exporter and automobiles
companies discovering the rural markets which will also boost the progress of the sector in
near future. By the outline of GST, where all the taxes are subsumed into one, it becomes
necessary to foresee the impact of GST on this industry. This paper covers the overall impact
of GST on the Automobile sector in India.
 CHAPTER -1

INTRODUCTION
GST is an indirect tax in India that has replaced several indirect taxes. On March
29, 2017, Parliament enacted the Goods and Service Tax Act. The Goods and Services Tax
Law in India, which went into effect on July 1, 2017, is a multi-stage, destination-based tax
that is charged on every value addition. The Goods and Services Tax (GST), also known as
the Value Added Tax, is a broad-based indirect tax levied on the production, consumption,
and sale of goods and services. In India, the Products and Services Tax (GST) will replace all
indirect taxes collected on goods and services by the central and state governments today.
GST is designed to be comprehensive for the majority of people. GST is designed to cover a
wide range of products and services. The Goods and Services Tax (GST) is a single indirect
tax that will make India a unified market. A single tax on the provision of products and
services from a manufacturer to the end customer is proposed. All input taxes paid at each
level would be credited in the subsequent phases of value addition, thereby making GST a tax
on value addition solely at each stage.

INDUSTRY PROFILE:
India's automobile industry is the world's fourth-biggest, with the country ranking
as the world's fourth-largest car producer and seventh-largest commercial vehicle
manufacturer in 2018. With 3.49 million units sold in the passenger and commercial vehicle
categories combined in 2020, India was the fifth-largest auto market. In 2019, it was the
seventh-largest commercial vehicle manufacturer. Due to a growing middle class and a young
population, the two-wheeler category leads the market in terms of volume. Furthermore, the
increased interest of businesses in investigating rural markets boosted the sector's expansion.
India is a major auto exporter, with excellent export growth prospects shortly. In addition,
many initiatives by the Indian government and major vehicle manufacturers are projected to
propel India to the forefront of the global two-wheeler and four-wheeler markets by 2020. By
2026, the Indian automobile sector (which includes component production) is predicted to be
worth Rs 16.16-18.18 trillion (US$ 251.4-282.8 billion). In FY19, two-wheelers dominated
the sector, accounting for 81 percent of all domestic automotive sales. Overall, domestic
automotive sales climbed at a 6.71 percent compound annual growth rate (CAGR) from
FY13 to FY18, with 26.27 million vehicles delivered in FY19. Between April 2000 and
September 2019, the Indian car sector received US$ 23.51 billion in foreign direct investment
(FDI). The car industry received 5% of overall FDI inflows to India. Domestic automotive
manufacturing climbed at a 6.96 percent compound annual growth rate (CAGR) from FY13
to FY19, with 30.92 million vehicles produced in FY19. Commercial vehicles grew at the
quickest rate in domestic sales in FY19, with a 17.55 percent year-on-year increase, followed
by three-wheelers with 10.27 percent year-on-year growth. In FY19, India's passenger car
sales surpassed 3.37 million units, and are predicted to reach 10 million units by FY20. In
2019-20, passenger car exports are expected to reach over 6,90,000 units.

India is making rapid development, and it is on track to become the world's third-largest
largest economy by 2030. The government is taking major steps to boost the county's overall
economic growth. India's automobile industry is one of the world's largest. The industry
contributes 7.1 percent of the country's Gross Domestic Product (GDP). In 2018, India
became the fourth-largest car market, with sales jumping 8.3% year on year to 3.99 million
vehicles. India is one of the world's major tractor manufacturers, as well as the second-largest
two-wheeler and bus makers, the fifth-largest largest heavy truck manufacturer, the sixth
largest automobile manufacturer, and the eighth largest commercial vehicle producer. Since
2015, five testing and research centers have been built in the nation as part of (TRIP). The
Project Implementation and Sanctioning Committee (PISC) accepted NATRIP's request for
"Grant-In-Aid for test facility infrastructure for Electric Vehicle (EV) performance
Certification from NATRIP Implementation Society" under the FAME Scheme on January 3,
2019.

The Indian government has also set a lofty goal of selling solely electric automobiles in the
country by 2022. During FY19, the Indian auto industry is expected to hire 8-12 percent more
people. Under the FAME (Faster Adoption and Manufacturing of (Hybrid) and Electric Cars
in India) initiative, the Ministry of Heavy Industries of the Government of India has
nominated 11 cities throughout the nation for the introduction of electric vehicles (EVs) into
their public transportation networks. The scheme's first phase has been extended until March
2019, while the second phase will begin in February 2019. For FY20-22, the Indian
government authorized the FAME-II plan, which has a fund demand of Rs 10,000 crore (US$
1.39 billion). The government declared in the Union Budget 2019-20 that the interest paid on
loans obtained to acquire EVs will be eligible for an extra income tax deduction of Rs 1.5
lakh (US$ 2146). Investment into electric vehicle start-ups surged by over 170 percent in
2019 (through the end of November), reaching US$ 397 million. Under FAME II, the
government has approved 5,595 e-buses for inter-city and intra-city operations in 64 cities
across 26 states. The plan approved 2,636 charging stations in 62 cities across 24 states and
territories.

In FY19, overall vehicle exports climbed by 14.50 percent year over year, while overall
exports increased by 3.9 percent from April to December 2019. During the period 2016-2026,
it is predicted to increase at a CAGR of 3.05 percent. During FY19, the domestic two-
wheeler sector is predicted to rise by 8-10%. In addition, the luxury automobile market in
India is predicted to develop at a 25% compound annual growth rate (CAGR) through 2020.
By 2023, the Indian government wants the vehicle sector to receive US$ 8-10 billion in
domestic and foreign investment. In the next 20 years, India will join the Worldwide
Automobile Triumvirate - the global Big 3 - and by the mid-2020s, Indian automotive sales
will outnumber those from the US market.

The irony here is impossible to miss: GST was implemented two years ago to make it easier
for businesses to pay their taxes, but the GSTN system, which demands them to input form
after form in addition to micro-level transactional information, has left them as perplexed as
ever. The CAG report on GST implementation, which was just issued, highlights some of the
issues. "On the overall, the proposed GST compliance system is non-functional," it reads.
The GST system's flaws also reveal a fundamental lack of cooperation between the Executive
and developers." GSTN 1 return filers (the form that needs invoice level information) are
significantly fewer than GSTN 3B return filers (the form that calls for gross details). This
may be attributable to difficulties in uploading GSTN information, not to any widespread
inclination to avoid taxes, as the officials in charge appear to assume. If "all returns being
submitted indicated a downward trend of filing from April 2018 to December 2018," the GST
Network, which continues to fail without being held accountable, bears the brunt of the
responsibility. The so-called "simplified" format for uploading results, which is set to be
implemented in a few months, is crammed with unnecessary rows and columns. In reality,
online invoice matching, as well as the suspicions that underpin it, should be examined.
Instead of simply providing a quarterly filing option for small firms, GST filing regulations
should be simplified for all businesses with less than $5 million in revenue and provide them
a fixed rate of tax under the 'composition scheme.' Despite efforts to streamline processes for
small firms, the costs of GST compliance (which includes filling out papers in English with
no other language choice) continue to be a burden.

HISTORY

In terms of both sales volume and manufacturing, the Indian car market is one of
the world's largest. When it comes to the history of the Indian automobile market, the first
vehicle on the road was in 1897. India had no manufacturing facilities until 1930, and
automobiles were supplied straight from other nations. The 1940s were a watershed moment
in the manufacturing process when Indian businesses like Hindustan Motors and Premier
began to build automobiles for foreign corporations. Mahindra & Mahindra began producing
utility vehicles throughout the same decade. Soon after India's independence in 1947, the
government attempted to establish an automotive component manufacturing industry to assist
the vehicle industry. Hindustan Motors dominated the Indian market from the 1960s through
the 1980s, gaining a substantial proportion of the market thanks to their ambassador model.
However, due to trade limitations on imports, the whole sector developed slowly from the
1950s through the 1960s. Soon after the repressive era ended, demand increased, albeit only a
little, mostly in the tractor and commercial vehicle segments. The automobile industry began
in the 1890s with hundreds of manufacturers that pioneered the horseless carriage. for many
decades, the United States led the world in total automobile production. In 1929, before the
great depression, the world had 32,028,500 automobiles in use, and the U.S produced over
90%of them. at that time the U.S had one car per 4.87 people. After World War 2, the U.S
produced about 75% of the world’s auto production.in 1980, the U.S was overtaken by Japan
and became the world’s leader again in 1994. In 2006, Japan narrowly passed the U.S in
production and held this rank until 2009, when China took the top spot with 13.8 million
units. With 19.3 million units manufactured in 2012, China almost doubled the U. S
production, with 10.3 million units, while Japan was in third place with 9.9 million units.
From 1970 over to 2012, the number of automobile models in the U.S has grown
exponentially.

THEORETICAL BACKGROUND OF THE STUDY:

The Goods and Service Tax (GST) is a nationwide single-rate tax applied on the
manufacturing, sale, and consumption of goods and services. The GST is solely applied to the
value-added at each step of manufacturing under this system. This would ensure that taxes on
inputs used in producing items do not have a cascading impact (tax on tax paid). With the
GST in place, we should expect lower costs for items, and we can expect dealers to pass these
savings on to the end customer in the long run. Significant disagreements have arisen in the
automobile industry over central excise valuation issues such as selling below cost for market
penetration, including State Industrial Promotion subsidies retained by the manufacturer,
deductibility of past sale discounts from value under excise, valuation of demo cars,
treatment of PDI charges and other dealer reimbursement advertisement charges recovered
from dealers, and sales through marketing companies and mutuality of interest. The model
GST law keeps the transaction value notion, which is a good thing. However, the rights to
reject the transaction value are broad, which might lead to large valuation conflicts.
When it comes to taxation throughout the industrial process, the GST is striving toward
a more realistic method. When the final product made by the manufacturer is produced on the
market, the tax collected by the manufacturer throughout the manufacturing process is
subtracted under the new system. As a result, the overall tax on items is decreased because
the tax levied on the final product does not include the pre-charged one. The wholesaler, who
deducts the tax while purchasing items from the producer and releasing them into the market,
follows the same procedure. After adding value to the goods, the product travels from the
wholesaler to the retailer, which sets off the tax once more.
The tax kicks in at every step of this cycle of transmitting commodities from one person to
the next, relieving some of the burdens on everyone involved at each point. As a result, when
the finished product is delivered, the overall worth of the good when taxed has a marginal
variance in favor of the customer in comparison to the current tax rate. The double tax burden
is being removed from this region, as taxes that may have been levied and then charged again
on the tax that had already been paid have been removed from the section, albeit there are
variances based on the kind of vehicle and its size and emissions. Furthermore, the total
compliance load is likely to diminish, resulting in a significant increase in revenue.

MEANING OF GST:

The goods and services tax (GST) is a consumption tax on products and services sold in the
United States. The tax is included in the final price and is paid by customers at the time of
sale, with the proceeds going to the government.
The Goods and Services Tax (GST) is a tax on goods and services. It is an indirect tax that
has largely superseded several other indirect taxes in India, including excise duty, VAT, and
services tax. On March 29, 2017, Parliament enacted the Goods and Service Tax Act, which
took effect on July 1, 2017. To put it another way, the Products and Service Tax (GST) is a
tax that is levied on the provision of goods and services. In India, the Goods and Services Tax
(GST) is a multi-stage, destination-based tax that is charged on every value addition. GST
(Goods and Services Tax) is a single domestic indirect tax law that applies to the entire
country.

GST NEEDS:

GST is India's most significant and far-reaching tax reform since independence. When
asked why GST was needed in India, the goal and objective were to charge a single national
uniform tax on all sorts of products and services across the country. GST has replaced several
taxes like sales tax, service tax, and others, making India a more integrated national economy
and bringing more individuals into the tax net. It can make a significant contribution to the
country's finances and growth through enhancing efficiency. Implementing a new tax regime
in a big and complex system, incorporating both products and services by the state and the
center, is likely unique in contemporary tax history.

Salient Features of GST:

 The tax is imposed on the manufacturing and sale of products, as well as the supply of
services, according to the current notion. However, GST would apply to the delivery
of goods or services.
 The GST will have a dual impact, with the Centre and States levying it on a shared tax
base at the same time. The GST imposed by the Centre on intra-State supplies of
goods and/or services will be known as Central GST (CGST), whereas the GST
imposed by the States will be known as State GST (SGST).
 All items other than alcoholic beverages for human consumption and five petroleum
products, namely petroleum crude, motor spirit (petrol), high-speed diesel, natural
gas, and aviation turbine fuel, would be subject to the GST. It would apply to all
services, except a handful that would be identified.
 Tobacco and tobacco products will be subject to GST, and the Centre would be able
to charge Central Excise Duty on them.
 The GST will replace the following taxes that the Centre now levies and collects:
  Excise Duty at the Central Level
 Excise responsibilities (Medicinal and Toilet Preparations)
 Excise duties not included in the above list (Goods of Special Importance)
 Excise duties not included in the above list (Textiles and Textile Products)
 Additional Customs Duties (commonly known as CVD)
 Customs has a special additional duty (SAD)
 Tax on services
 The following state taxes would be absorbed by the GST:
 State VAT Central Sales Tax Luxury Tax Entry Tax with Octroi Lien (ETILOO)
 a tax on entertainment (not levied by local bodies)
 Advertising-related taxes
 Lotteries, Betting, and Gambling Purchase Taxes
 Insofar as they relate to the delivery of goods and services, state cesses and
surcharges are applicable.

COMPONENTS OF GST
GST is made up of the following main components:
 GST at the national level (CGST)
 GST levied by the state (SGST)
 GST in the Union Territories (UTGST)
 GST that is integrated (IGST)

In most cases, the tax structure under the new regime will be as follows:

Types of New Old Regime

transactions Regime

Sales within CGST + VAT + Revenue will be shared equally between

the state SGST Central Excise/Service tax the Centre and the State
Sales to IGST Central Sales There will only be one type of tax
another state Tax + (central) in case of inter-state sales.
Excise/Service The Centre will then share the IGST
Tax revenue based on the destination of
goods.

ADVANTAGES OF GST
 GST is made up of the following main components: GST is an easy-to-understand tax
that also helps to minimize the number of indirect taxes.
 There will be no hidden taxes and the cost of conducting business would be cheaper
since GST will not be a burden to registered shops.
 People will benefit because prices will drop, which will boost businesses since
consumption will rise.
 There is no question that services are increasingly used or consumed in the
manufacturing and distribution of commodities, and vice versa.
 Separate taxes for goods and services, as is the current taxation system, necessitate the
split of transaction values into the value of products and services for taxation,
resulting in increased complexities, administrative, and compliance expenses.

GST DISADVANTAGES
 According to some economists, GST in India would have a detrimental influence on
the real estate sector. It would raise the cost of new houses by up to 8% and diminish
demand by roughly 12%.
 According to some experts, CGST (Central GST) and SGST (State GST) are just new
names for the Central Excise/Service Tax, VAT, and CST. As a result, the number of
tax levels does not decrease significantly.
 Some retail items are now subject to a four percent tax. Garments and clothing may
become more expensive when the GST is implemented.
  It would have an impact on the aviation sector. Currently, service taxes on airfares
range from 6% to 9%. With GST, the rate will rise to above 15%, nearly doubling the
tax rate.
CHALLENGES
 States' Consent: The GST bill must be enacted by the respective state governments
in the state assembly to get majority support. This is a titanic task.
 RNR (Revenue Neutral Rate): It is a significant factor in its success. We already
know that under the GST system, government revenue will be lower than under the
existing system. As a result, the government uses RNR to guarantee that its revenue
stays stable notwithstanding tax credits.
 Threshold Limit in GST: To achieve a broad-based tax structure under GST, both
the empowered committee and the central government must guarantee that the
reduction of the threshold limit does not impose a "taxing" burden on small company
owners in the country.
 A solid IT infrastructure: The government has already established a network of
goods and service taxes (GSTN). GSTN must provide a GST portal that provides
technical assistance for registration, return filing, tax payments, and IGST settlements,
among other things. As a result, a strong IT foundation is required.
 GST requires extensive training for tax administration staff since it is fundamentally
different from the current system. As a result, tax administration professionals at the
federal and state levels must be appropriately trained in terms of ideas, legislation,
and procedure.
 The following are the numbers of statutes that have been enacted: There will be
two types of GST laws: one at the federal level, known as the "Central GST (CGST),"
and another at the state level, known as the "State GST (SGST)." As there appear to
be varying tax rates for products and services at the federal and state levels, with
additional segmentation based on the required and non-essential property based on
each state's need, location, geography, and resources.

History of GST in India

The GST has been implemented in approximately 160 nations, with France being the first
to do so in 1958. Because the tax provides a variety of benefits, it has been on every
ruling party's platform in the country. The road to introducing GST in India has been
 long, and it is the outcome of a broader segment of society, notably commerce and
industry, as well as international companies with commercial interests in India.

The empowered committee of state finance ministers, which included Hon'ble state
finance ministers from West Bengal, Karnataka, Madhya Pradesh, Maharashtra, Punjab,
Uttar Pradesh, Gujarat, Delhi, and Meghalaya, had the following aims when it was
established by the Indian government:

 To keep track of how states and union territories are implementing unified sales tax
floor rates. To keep track of the phase-out of sales tax-based incentive schemes;
 To provide goals and ways for states to transition to VAT; and to keep track of the
phasing out of sales tax-based incentive schemes.
 To keep track of modifications to the country's national sales tax system.

The members of the authorized committee were then communicated to the honorable state
finance ministers of Assam, Tamil Nadu, Jammu & Kashmir, Jharkhand, and Rajasthan.

On August 12, 2004, the Indian government agreed to resurrect the Empowered
Committee, which would include all of the country's respected finance/taxation ministers. It
was later decided to register the organization as a society under the Society Registration Act
of 1860. GST has been in the works for a long time, and its passage and implementation
have been delayed.

IMPORTANCE OF TOPIC:

India's automobile industry is a massive operation that produces a big number of

automobiles and motorcycles each year, powered mostly by the country's massive population.
The GST absorbed the majority of indirect taxes. The purpose of this essay is to examine the
GST's relevance to the vehicle sector. Previously, excise and VAT were the two taxes levied
on vehicles and motorcycles, with an average combined rate of 26.50 percent to 44 percent,
which is higher than the GST rates of 18 percent and 28 percent. As a result, the GST
imposes a lower tax burden on the final customer.
Importers and dealers can rejoice because they will be allowed to claim the GST paid on
products imported or sold, while they were previously unable to recover the excise tax and
VAT paid. Under the GST statute, excise paid on stock transfers will be covered by IGST.
Advances for the provision of products will be taxed under GST as well. Due to an enhanced
supply chain, GST would assist manufacturers in purchasing vehicle parts at a lower cost.
The Goods and Service Tax (GST) is a nationwide single-rate tax applied on the
manufacturing, sale, and consumption of goods and services. The GST is solely applied to the
value-added at each step of manufacturing under this system. This would ensure that taxes on
inputs used in producing items do not have a cascading impact (tax on tax paid). With the
GST in place, we should expect lower costs for items, and we can expect dealers to pass these
savings on to the end customer in the long run. Significant disagreements have arisen in the
automobile industry over central excise valuation issues such as selling below cost for market
penetration, including State Industrial Promotion subsidies retained by the manufacturer,
deductibility of past sale discounts from value under excise, valuation of demo cars,
treatment of PDI charges and other dealer reimbursement advertisement charges recovered
from dealers, and sales through marketing companies and mutuality of interest. The model
GST law keeps the transaction value notion, which is a good thing. However, the rights to
reject the transaction value are broad, which might lead to large valuation conflicts.

When it comes to taxation throughout the industrial process, the GST is striving toward a
more realistic method. When the final product made by the manufacturer is produced on the
market, the tax collected by the manufacturer throughout the manufacturing process is
subtracted under the new system. As a result, the overall tax on items is decreased because
the tax levied on the final product does not include the pre-charged one. The wholesaler, who
deducts the tax while purchasing goods from the producer and releasing them into the market,
follows the same procedure. The product is passed from the wholesaler to the retailer, who,
after adding value to the commodity, deducts the tax when the items are eventually released
into the market. The tax kicks in at every step of this cycle of transmitting commodities from
one person to the next, relieving some of the burdens on everyone involved at each point. As
a result, when the finished product is delivered, the overall worth of the good when taxed has
a marginal variance in favor of the customer in comparison to the current tax rate. The double
tax burden is being removed from this region, as taxes that may have been assessed and then
charged again on already paid taxes have been erased.
NEED TO STUDY THE TOPIC:
The research aids in determining whether Excise paid on stock transfers is covered by IGST
under the GST statute. Advances for the provision of products will be taxed under GST as
well. What are the two separate tax rates for bikes and vehicles that are charged to end-users?
The impact of GST on the Indian economy is mixed. It has a favorable influence on certain
industries while hurting others. Agriculture and textiles were the two primary industries that
were negatively impacted by GST because they were not subject to the tax regime before
GST. As the government has restricted the list of exempted products, the industries that will
be subject to GST have increased. The study helps determine whether Excise paid on stock
transactions is subject to IGST under the GST legislation. Advances for the provision of
goods will also be subject to GST. What are the two different tax rates that end users are
paying for bikes and vehicles?
GST has had a mixed influence on the Indian economy. It has a positive impact on certain
industries but has a detrimental impact on others. Agriculture and textiles were the two
principal industries that were adversely affected by GST since they were not previously
subject to the tax regime. The industries that would be subject to GST have risen as the
government has reduced the list of exempted items. The industry supports over 8 million jobs
directly (OEMs, suppliers, and dealers) and as many as 30 million jobs in the value chain,
contributing 6.4 percent to GDP and around 35 percent to manufacturing GDP. It supports
over 8 million jobs directly (OEMs, suppliers, and dealers) and as many as 30 million jobs in
the value chain.

Benefits of GST

Benefits for center

According to the current taxation structure, the center does not have the authority to tax
commodities produced. Except in the event of interstate purchases, the state has the authority
to charge a sales tax. As a result, the implementation of GST would enable local
governments to tax sales as well.

Benefits of GST for Centre:

Increase in GDP
 Increase in exports

Power to tax after production down to distribution point

Ensures better compliance and prevent tax evasion

Benefits to state
There is no consistency in tax rates between the states. Even after the implementation of
VAT, individual states have varying tax rates. As a result, there was a rate war between
states. The GST will bring tax rates closer together. Other advantages for the state include:
Benefits for states

Will get power to tax services

Will reduce rate wars, therefore, the outflow of investment to other states due to rate war will be
prevented
Introduction of a comprehensive system of reliefs including set-off of CENVAT and service
taxes
Increase in revenue due to broadening of the tax base

Removal of the burden of CST

Benefits to Industry
Benefits to Industry

Will provide a comprehensive input tax credit, the service tax can be set off with sales tax

No need to pay CST

Many central and state indirect taxes will be subsumed in GST, therefore, a single tax is to be
paid.
Uniformity in tax procedure throughout the country

The reduced tax burden will increase the competitiveness of Indian products in foreign markets
Benefits to Consumer
Benefits to Consumer

The reduced tax burden will be passed on to consumers in form of reduced prices.

Better compliance and increased tax revenue will enable the government to spend more on
welfare

Through more thorough and wider coverage of input tax set-off and service tax set-off,
subsuming of many taxes in the GST, and phasing out of CST, the GST will provide
additional relief to industry, commerce, agriculture, and consumers at the federal and state
levels. There may be revenue/ resource gains for both the Centre and the States if the GST is
correctly constructed, with appropriate rate calibration and compensation where necessary.
This is largely due to a wider tax base and the likelihood of considerable improvement in
tax compliance. In other words, the GST may pave the way for a collective benefit for
industry, commerce, agriculture, and ordinary consumers, as well as the federal and state
governments. The GST may result in a collectively positive-sum game.

REGISTRATION

Persons liable for registration

(1) Every supplier shall be required to register under this Act in the State or Union territory,
other than special category States, from which he makes a taxable supply of goods or
services or both if his aggregate turnover in a financial year exceeds twenty lakh rupees:
Provided, however, that where such person makes taxable supplies of goods or services or
both from any of the special category States, he shall be required to register if his aggregate
turnover in a financial year exceeds twenty lakh rupees.

(2) Every person who is registered or possesses a license under earlier legislation on the day
immediately preceding the specified day is liable to be registered under this Act with effect
from the set day.
 (3) Where a taxable person registered under this Act transfers a business as a continuing
concern to another person, whether by succession or otherwise, the transferee or successor,
as the case may be, is required to be registered with effect from the date of such transfer or
succession.

(4) Notwithstanding sub-sections (1) and (3), the transferee in a case of transfer under the
sanction of a scheme or an arrangement for amalgamation or, as the case may be, the
demerger of two or more companies under an order of a High Court, Tribunal, or otherwise,
shall be liable to be registered, with effect from the date on which the Registrar of
Companies issues a certificate of incorporation giving effect to such order of the High Court
or Tribunal.

Persons not liable for registration:

(1) The following persons shall not be liable to registration, namely: –

(a) any person who is solely engaged in the business of supplying goods or services, or
both, that are not subject to tax or are wholly exempt from tax under this Act or the
Integrated Goods and Services Tax Act;
(b) an agriculturist, to the extent that he or she supplies produce from land cultivation.
(2) The Government may determine the group of people who may be exempted from
acquiring registration under this Act by notification, based on the Council's
recommendations. The Central Government has issued a statement. With effect from June 22,
2017, Notification No. 05/2017-Central Tax, dt. 19-06-2017 modified section 23 of the
CGST Act, 2017 to cover individuals who are exclusively engaged in manufacturing taxable
products or services or both, the whole taxon which is subject to be paid on a reverse basis.
Charge basis by the recipient of such goods or services or both under section 9(3) of the
CGST Act, 2017 in the category of persons exempted from obtaining registration under the
aforesaid Act.

Compulsory registration in certain cases:

 persons making any inter-State taxable supply

 casual taxable persons making taxable supply
 persons required to pay tax under reverse charge
 a person required to pay tax under sub-section (5) of sec 9
 non-resident taxable persons making taxable supply
  persons required to deduct tax under section 51, whether or not separately registered
under this Act
 people who, as an agent or otherwise, make taxable supplies of goods or services, or
both, on behalf of other taxable persons
 Input Service Distributor, whether or not separately registered under this Act;
any electronic commerce operator
 any person who supplies goods or services or both, other than those described in
paragraph (5) of section 9, through an electronic commerce operator obligated to
collect tax at source under part 52

Procedure for registration

 Every person who is required to be registered under section 22 or 24 must apply for
registration in each State or Union territory in which he is required to be registered within
thirty days of the date on which he is required to be registered, in the manner and under
the circumstances prescribed: Provided, however, that a non-resident taxable person or a
casual taxable person must apply for registration at least five days before the start of
operations. An explanation. Every person who makes a supply from India's territorial
waters must register in the coastal State or Union territory where the appropriate
baseline's nearest point is located
 A person who is not required to be registered under sections 22 or 24 may do so
voluntarily, and all provisions of this Act that apply to a registered person apply to that
person.

 For this Act, a person who has received or is required to obtain more than one
registration, whether in one State or Union territory or more than one State or Union territory,
is considered as a separate person for each such registration.

 If a person has received or is obliged to seek registration in a State or Union territory in

respect of an establishment, that person's establishment in another State or Union territory is
considered as an establishment of different individuals for this Act.

 To be eligible for grant of registration, every person must have a Permanent Account
Number issued under the Income Tax Act of 1961: Provided, however, that a person required
to deduct tax under section 51 may have, instead of a Permanent Account Number, a Tax
Deduction and Collection Account Number issued under the said Act.

 A non-resident taxable person may be granted registration under sub-section (1) based on
such additional papers as may be required, notwithstanding anything in sub-section (6).

 If a person who is required to be registered under this Act fails to do so, the competent
official may proceed to register that person in the manner provided, without prejudice to any
other action that may be taken under this Act or any other legislation now in effect.

1) Notwithstanding anything contained in sub-section (1), –

a) any specialized agency of the United Nations Organization or any Multilateral
Financial Institution and Organization notified under the United Nations (Privileges and
Immunities) Act, 1947, Consulate or Embassy of foreign countries; and
b) any other person or class of persons, as the Commissioner may notify, shall be
granted a Unique Identity Number in such manner and for such purposes, including a refund
of taxes on the notified supplies of goods or services.
2)After appropriate verification, the registration or Unique Identity Number will be issued or
refused in the manner and timeframe stipulated.
3) A certificate of registration shall be issued in the format and with the effective date
specified.
4) If no shortcoming has been disclosed to the applicant within that period, a registration or a
Unique Identity Number is presumed to have been issued after the period required under
subsection (10) has expired.

Problems regarding GST

Exporters have reported several strikes, mistakes, and mismatches in returns submitted in the
post-GST period, and the World Bank has described GST as an extremely complicated taxing
system. However, India as a country took a big step towards a new order in its taxation
history a few months ago, on July 1st, 2017. GST was seen as India's second chance at
redemption.

However, more than 26 months later and many policy modifications later, it appears that not
everything has gone according to plan. This was a possibility, and the government was
willing to take short-term losses in exchange for significant long-term profits. India's GST
not only has one of the highest tax rates in the world, but it also has the most tax slabs. Add
to it the ever-increasing compliance obligations, as well as technological and compliance
concerns. India has the highest standard GST rate among Asian countries. It is only second to
Chile on the earth. The non-zero-rated items (0, 0.1, 0.25, 1, 1.5, 3, 5, 7.5, 12, 18, and 28
percent) contrast sharply with the other zero-rated products and the 3 percent GST rated
Gold. Petroleum, electricity, and real estate remain exempt from the GST.

GST aims to streamline India's indirect tax system by combining several taxes into a single
unified tax that includes central excise, service tax, VAT, entrance tax, and so on. However,
there are several obstacles in the way of the government's proper execution. The following
are a few of them:

1) In May 2015, the Lok Sabha enacted the GST Constitutional Amendment Bill. The
administration, however, encountered significant political hurdles and failed to approve
the bill in the Rajya Sabha during the summer and winter sessions of last year.
2) Once this is accomplished, another Herculean job would be to have the GST Bill enacted
in state legislatures by the individual state governments. The government would also be
obligated to make the GST bill public and provide ample time for all stakeholders to
understand and comment on it.
3) The success of GST is heavily reliant on two key factors: the 'RNR' and the 'threshold
limit' for GST. The Money Neutral Rate, or RNR, is the rate at which the government
would not lose revenue as a result of the introduction of GST. RNR will hurt India Inc if
it is too higher than the current tax structure. The RNR was set at 27 percent after
research by the National Institute of Public Finance and Policy (NIPFP). However, the
Economic Advisor Panel recently advocated an RNR of 15% to 15.5 percent, implying a
lower tax rate of 12% and a regular tax rate of 17 percent to 19 percent.
4) Furthermore, the government and the Empowered Committee disagree on the threshold
limit of turnover for dealers under GST, which aims to widen the revenue base under
GST. The solid IT backbone connecting all state governments, commerce and industry,
banks, and other stakeholders in real-time is another component that will influence GST's
performance.
5) The government has already established a special purpose vehicle (SPV) called the Goods
and Services Tax Network (GSTN), which is responsible for developing a GST portal,
which includes a front-end system for commerce and industry as well as a back-end
system for all government departments. GSTN would provide technical assistance to all
stakeholders for registration, return filing, tax payment, IGST settlement, MIS, and other
dashboards on the GST site.

CHAPTER-2

REVIEW OF LITERATURE AND

RESEARCH DESIGN
INTRODUCTION:

This chapter compiles all the literature studies that have been used throughout the research
project. It will explain in-depth how GST is the impacts automobile sectors, scope, objectives
tools, and techniques development of the project.

REVIEW OF LITERATURE

The researcher used a review of many books, research articles, government reports, and
various publications related to the issue, as well as reputable and legitimate websites, to write
this chapter.
 In her essay "Impact of GST on the Automobile Industry in India," Akshara Mahesh
and Kartika K (2018) According to this study, lowering the tax rate on luxury
automobiles may increase sales, but not on modest cars. It may have a good impact
after some time when the government has reinvigorated its financial budget and there
are more opportunities for future growth in the motor sector.
 The impact of GST on the care sector was studied by Nalla Roopa and S. Aruna
(2020). It was noted that the tax rate applicable to various categories of vehicles
decreased from pre-GST to post-GST, resulting in lower pricing for buyers and
certainty in the tax to be paid by dealers and automotive manufacturers. GST,
according to him, would pave the way for the expansion of the car industry's
structure, as well as stimulate GDP growth and financial development in the country.
 The impact of GST on TATA automobile sales was empirically investigated by
Charumathi S. et al. (2019). The sale of commercial, passenger, and export
automobiles has surged since the establishment of the GST. There is a significant
need for vehicles in India, which poses the risk of foreign automotive makers entering
the market to profit from the high demand for automobiles among Indians. As a result,
measures such as the GST are extremely advantageous to auto firms in terms of
increasing sales and expanding their businesses.
 In her paper "Impact of GST on Automobile Industry," Neelavathi. K says: The
implementation of GST reforms from the source public to the consumer might boost
GDP growth and drive interest in vehicles across all classes. As all values on input
paid are counter steady with the GST yield obligation, this will affect the duty
diminishing will outflow, which may lessen the overall cost of auto-generating.
 Tarunika published his report "IMPACT OF GST ON REAL ESTATE AND
AUTOMOBILES SECTOR" on June 6, 2017. The essay offers a broad perspective on
the impact of the GST on the real estate and car industries. It helps in Sympathetic of
GST would assist policymakers to acquire superior public acceptability and, as a
result, make the transition from the previous taxing system simpler. In the future, this
research will aid in understanding the impact of the GST and other sectors on the
economy.
 Dhyan Vishnu prajna N's work "Impact of GST Implementation on Share Prices - A
Study on Automobile Industry" was published on November 11, 2017. The vehicle
sector in India has benefited from the implementation of the GST, according to this
analysis. After the implementation of GST, tax rates were lowered and shares were
exchanged at a greater rate, resulting in larger returns. As a result, GST for the vehicle
sector is a win-win situation for both investors and manufacturers.
 Milan deep tour (November 2, 2016) in his research of “A STUDY ON IMPACT OF
GST \after ITS IMPLEMENTATION” In this study, a single tax system, GST, will be
used to lower the current level of compliance. GST will confront several problems
following its introduction, but it will also provide numerous benefits. Overall, we can
conclude from this research that GST plays an important part in our country's growth
and development.    
  Dr. Krishna Banana's work "AN ANALYSIS OF GST IMPACT ON MOTORBIKE
INDUSTRY IN INDIA" was published in January of 2018. GST is expected to have
an impact on India's collecting sector, according to the Indian government. The
purpose of this investigation is to see how GST affects automobile and motorcycle
parts in India.
 Roshan Roy's study "Project report on implications of Goods and Service Tax (GST)
on the Automobile Industry of India" was published on May 2, 2017. Automobile
manufacturers are looking forward to the GST outline. There are several concerns
about the GST approach that need to be addressed. Limitations and conditions on
earnestness to tax credits on business assets are also a major source of concern, and
the credit mechanism should be expanded. GST will be a boon to the vehicle sector in
general. Malaysians' comprehension of GST,     
 According to Tan and Chin-Fat (2000), is still lacking. According to a study done by
Djawadi and Fahr (2013), tax awareness is vital for increasing the push of authorities
as well as individuals.
  Kumar R (2016) has recognized the Impact of GST on the Indian Economy with an
examination of GST and previous taxation systems and established that after
implementation of GST, producers, wholesalers, and retailers may recover readily
input taxes in the form of tax credits.
 Lourdunathan F and Xavier P (2016) have exposed the challenges prospects of
implementing GST, finishing that GST will fetch one nation one tax that will
discharge producers and consumers from several taxes.
 The study rewarded that GST helps to dispose of multiple taxations, it will reduce the
burden at present, imported and Indian goods will be taxed at the same rate, Chaudhri
K., Kour M., Singh S. (2016) emphasized that study on the impact of GST after its
implementation, the study rewarded that GST helps to dispose of multiple taxations, it
will reduce the burden at present, imported and Indian goods will be taxed at the same
rate. Because there would be just one tax system, many indirect taxes such as sales tax
and VAT will be eliminated.
 The impact of GST on the Indian car industry was noticed by Kharde S.D. (2017) in a
report that included the overall impact of GST on the automobile sectors in India and
a comparison of pre-tax policy and GST policy on the automobile industry. The
influence of GST on the country's economic progress was also discussed by the
author.
 The influence of GST on the care sector was studied by Neelavathi K. and Sharma R.
(2017), and the study indicated that the automobile industry has the potential to
become one of the country's major contributors to economic growth and job creation.
They successfully analyzed various tax rates charged on automobiles before and after
the implementation of GST.
 Ms. Charmi Karia: A Study on the Impact of GST on India's Automobile Industry 53
The influence of GST on the real estate and car sectors has been claimed by Jain T.,
Agrawal, and Goyal A. (2017). The study indicates that the real estate and automobile
sectors can benefit from GST if they are adequately prepared for the changes in the
business environment.

STATEMENT OF THE PROBLEM

Automobile dealers and manufacturers are required to charge a GST on the sale of
automobiles as well as other ancillary services such as insurance and accessories. Taxing
these goods in the future will be difficult due to the varied tax treatment for composite and
blended products. As of yet, the GST policy wing has offered no clarification for the vehicle
sector and its varied selling packages, which might lead to future lawsuits.

SCOPE OF THE STUDY

GST aids have been registered by professionals as follows:

The Goods and Service Tax (GST) Law is considered to be the most important
adjustment to decrease the disadvantages of India's previous indirect taxation structure. The
VAT at the state level and the CENVAT at the state level are integrated under the GST
regime.

Common-Law is developed, and therefore an unbroken chain of set-off is

constructed from the original producer's point to the service provider's point to the retailer's
level, reducing the burden of all cascading consequences. This is the heart of GST, and it's
why it's not only a state-level VAT (including service tax) but a step forward over the old
VAT and disconnected service tax structure.

OBJECTIVE OF THE STUDY

The study's goal is to determine the impact of the Goods and Service Tax (GST) on
India's car sector, and whether it would be a boon or a curse for the industry. The following
are the additional sub-objectives:

Sub-objectives include:

 To investigate how the adoption of the GST would affect auto loans.
 What impact would GST have on the Indian economy?

SAMPLING

People are chosen at random from the sample population.

 Sample size: A random sample of persons from various parts of the country was
taken from the total population.
 Study Area: The study was conducted utilizing Google forms and online surveys.
  Sampling Technique: For this investigation, a random sample was chosen as the
sampling technique. In such a way that all of the study's requirements are met.

TOOLS FOR DATA COLLATION:

The data and the information presented here have been collected from two kinds of
resources:

1. Primary sources

The respondents' primary data was gathered through a structured questionnaire and
observations, interviews, and discussions with the management team.

• With the assistance of Google. Form Prepare a questionnaire and distribute it to the
general public, with the responses being gathered and surveyed. One type of primary
source is this.
2. Secondary sources

Secondary data is information that has been gathered from primary sources and made
available to scholars for use in their research.

• Research publications can be found on the website.

• Data is accessible over the internet.
• There are several websites dedicated to personal loans, as well as online
access to the Daily News.

The bibliography contains all of the relevant information.

RESEARCH METHODOLOGY

RESEARCH DESIGN

 The analysis is limited to the systems and procedures in lending, as well as the period
mentioned above, for the most recent information and focus.

TOOLS AND TECHNOLOGIES USED

Statistical methods include:

• Percentages.
 • Averages and standard deviations.
• Tables, bar charts, and pie charts are examples of tools.

Technologies in Hardware and Software:

• Access to the Internet using a personal computer at home.

• Microsoft Word and Excel 2003.
• The World Wide Web, often known as the Internet.

DATA ANALYSIS

Tables, charts, and other relevant and essential visualizations will be used to collect,
organize, and evaluate data. The data will be interpreted, and this will serve as the foundation
for inferences and suggestions to help better comprehend and conclude this study.

Classification of tax on vehicles Before GST and After GST

GST will impact several sectors of automobile sectors, some positively or negatively.
Let us check the summary of the impact of GST on the automobile industry:

Sn.no Two-wheeler segment Before GST After GST

1 Engine size less than 350cc 30.2% 28%

2 Engine size greater than 350cc 30.2% 31%

3 Commercial vehicles Before GST After GST

4 Three-wheelers 30-33% 28%

Minibus with 10 to 13
5 Passenger capacity 30-33% 31%

6 Tractor 28% 28%

Car Segments Before GST After GST

Sn.no
 1 Small cars (below 1200 cc) 28% 29%

2 Mid-size cars (1200-1500cc) 39% 31%

3 Luxury cars (over 1500cc) 45-50% 43%

SUVs (over 1500cc, over 170mm
4 Ground Clearance) 50-54% 43%

LIMITATIONS OF THE STUDY

Limitations The following are some of the concerns about GST:

 Lack of clarity on subsuming of cess

There is a lack of clarity on cess subsumption. Several cesses have been implemented
in the automotive sector, including the vehicle cess, NCCD, tractor cess, and
infrastructure cess. The government has stated its aim to incorporate all national and
state cess into GST during deliberations on the bill. However, it is unclear from a
reading of the Model GST law and the constitutional amendment bill if cesses
imposed under various laws (for specific reasons) would be absorbed into GST or will
persist in the GST scenario.
 Impact on registration, return, and accounting
Registration, return, and accounting are all affected. Even though it applies to the
same dealership and is protected under the same PAN, dealers must get separate
registrations for each state dealers, on the other hand, might choose to register
numerous vehicles in the same state.

Returns: The GST System will impose a significant compliance burden, since each
registrant will require the filing of 37 returns in one financial year, in addition to ISD
returns. If the vendors do not pay their taxes or do not submit their returns, the credit for
those taxes will be disallowed to the customers. As a result, timely tax payment and
return filing are essential.
Accounting: Communication and document flow from all branches to H.O. should be
completed by the 10th of the following month. As a result, the accounting department
must be more efficient.

 Disputes overvaluation
Under central excise valuation, the automobile sector has faced considerable issues,
such as sales below cost for market penetration, the inclusion of State Industrial
Promotion Subsidies maintained by the manufacturer, and deductibility of post-sale
discounts from value under excise. Sales through marketing agencies and mutuality of
interest, as well as valuation of demo automobiles, advertisement charges recovered
from dealers, and mutuality of interest. The idea of 'transaction value' is retained in
the Model GST law, which is a commendable gesture; but, the rights to reject the
transaction value are broad, which might lead to large valuation conflicts.
 Transfer of the right to use a car and its attachments, as well as handling fees
In addition to the price of the car, dealers charge for ancillary services such as
insurance, extended warranties, accessories, logistics and handling, registration, and
so on. It is critical to determine whether the entire transaction should be characterized
as distinct supplies, a composite supply, or a "mixed supply" (a novel notion), as this
will result in widespread litigation.

 Discounts on Post-Supply
Dealers typically obtain discounts from their manufacturers depending on sales
objectives, cars lifted, Special Customers [such as CA, Doctor], Year-End Discounts,
and other factors. It is important to remember that post-supply discounts will not be
accepted as a value deduction if they are not connected to any GST invoice.

Chapter-3
Profile of the selected organization and
Respondent
AUTOMOTIVE INDUSTRY is a broad term that refers to a variety of businesses and
organizations that are involved in the design, development, production, marketing, and sale of
automobiles, some of which are known as automakers. By revenue, it is one of the world's
most important economic sectors. Automobile repair shops and motor fuel filling stations are
not included in the automotive sector since they are not involved in the maintenance of
vehicles once they are delivered to the end customer.
To designate any type of self-powered vehicle, the term automotive was coined from the
Greek autos (self) and Latin motivus (motion). Elmer Sperry was the one who coined this
word.
HISTORY:
Hundreds of manufacturers pioneered the horseless carriage in the 1890s, launching the
automotive industry. For many decades, the United States was the world's leading producer
of total automobiles. Before the Great Depression, the globe had 32,028,500 vehicles in use
in 1929, with the United States producing over 90% of them. At the time, there was one
automobile for every 4.87 people in the United States. After WWII, the United States
manufactured almost 75% of the world's automobiles. The United States was surpassed by
Japan in 1980 but returned to the top spot in 1994. Japan narrowly passed the United States in
manufacturing in 2006, and it remained there until 2009 when China overtook Japan with
13.8 million units. In 2012, 19.3 million units were produced. With 10.3 million units, China
nearly doubled US production, while Japan came in third with 9.9 million units. [4] From
1970 (140 models) over 1998 (260 models) to 2012 (684 models), the number of automobile
models in the U.S. has grown exponentially.
ECONOMY:
In 2007, around 806 million vehicles and light trucks were on the road worldwide, consuming
more than 980 billion liters (980,000,000 m3) of gasoline and diesel fuel annually. In many
industrialized economies, the vehicle is the major form of mobility. According to the Boston
Consulting Group's Detroit division, by 2014, the four BRIC markets would account for one-
third of global demand (Brazil, Russia, India, and China). Meanwhile, the car sector in
wealthy nations has stagnated. [8] This tendency is projected to continue, particularly since
younger generations (in highly urbanized nations) no longer desire to possess a vehicle and
prefer to use other forms of transportation. Iran and Indonesia are two more prospective car
markets. Emerging auto markets are already purchasing more vehicles than developed
markets. Emerging markets accounted for 51% of global light-vehicle sales in 2010,
according to a J.D. Power study. This tendency was predicted to accelerate, according to
2010 research. Recent reports (2012), on the other hand, proved the reverse, namely that the
automobile sector was slowing even in the BRIC countries. [8] Vehicle sales in the United
States peaked at 17.8 million units in 2000.

MARUTI SUZUKI INDIA

Suzuki Motor Corporation, a subsidiary of Maruti Suzuki India Limited, is India's top
passenger car manufacturer, accounting for almost 45 percent of total industry sales. Maruti
Suzuki has 16 brands and around 150 variations. Maruti 800, Alto 800, Alto K10, Estilo,
Wagon-R, Omni, Eeco, and A-Star are some of Maruti's brands. Ritz, Gypsy, Swift, Swift
Dzire, SX4, Ertiga, Kizashi, and Grand Vitara are among the models available. The firm is in
the business of purchasing, manufacturing, and selling automobiles and replacement parts.
Maruti Suzuki also does things like pre-owned automobile sales, car finance, and fleet
management.
Maruti Suzuki has received several prizes and distinctions. For the tenth year in a row, it has
placed first in the JD Power Asia Pacific Customer Satisfaction Index (CSI) study 2009.
Maruti Suzuki was named Manufacturer of the Year by CNBC TV 18 in 2011.
Maruti Suzuki is the only Indian firm to have sold more than ten million vehicles since its
foundation. In Haryana, India, the firm operates two production plants in Manesar and
Gurgaon. The manufacturing factory in Gurgaon has a capacity of nine lakh units per year.
Maruti Suzuki India Limited, according to Mr.R.C.Bhargava, Chairman, has approved an Rs.
1700 crore investment to double the diesel engine capacity at its Gurgaon Manufacturing
Facility to 6,00,000 units by 2014. The K Series engine facility is also located in Gurgaon.
Over ten lakh K Series engines have been produced since the plant's start. Maruti Suzuki's
production facilities in Manesar feature two fully integrated factories with an annual capacity
of 5.5 lakh units.
In terms of social activities, Maruti Suzuki is also ahead. Maruti Suzuki, as a responsible
corporate citizen, established the Institute of Driving & Traffic Research to provide India
with world-class driving instruction facilities. These include a bilingual theory curriculum,
scientifically designed driving circuits, and modern driving simulators that mimic Indian
driving conditions.
Maruti Suzuki launched the National Road Safety Mission in 2008. The corporation
committed to teaching approximately 5,00,000 people in safe driving practices over three
years as part of this project. Maruti Suzuki has also created a Maruti Driving Training School
to improve road safety and instill safe and methodical driving practices in individuals (MDS).
Practical and Attitude Training are available at these driving schools.

ANALYSIS OF THE COMPANY'S MISSION, VISION, AND SWOT.

1)Company's Portfolio:
INDIA'S best and Asia's largest vehicle industry, Maruti Udyog Limited (MUL), was
founded in 1981 by an act of parliament is a subsidiary of Suzuki Motor Corp (who owns
MUL). MUL was the first vehicle firm in the world to be awarded an ISO 9000:2000
accreditation. a 54% equity stake). The Government of India remains a significant equity
stakeholder (10%). With its early mover advantage in the Indian market: Maruti retains a
dominant Market share despite increasing competition.
2) Business Portfolio:
The Group's principal activity is to manufacture, purchase, and sale of Motor Vehicles and
Spare parts. The other activities of the Group comprise of facilitation of Pre-Owned Car
Sales, Fleet Management and Car Financing. The Group also provides services like the
framing of customized car policies, economical leasing of cars, maintenance management,
registration
and insurance management, emergency assistance, and accident management. The product
range includes ten basic models with more than 50 variants. The Group has operations in over
100 cities with more than 150 outlets and also exports cars to other countries.

VISION:
Any company's vision is the set of ideals upon which it operates. Because the MUL is based
on government efforts, it tends to be more consumer-oriented and hence less expensive, but
Suzuki's participation assures that profit is not just needed, but that maximum profit is
needed. Nora's challenge of picking principals for the company's operating vision could only
be solved by maximizing profit and lowering costs by increasing output and sales. Hence
"The Leader in the Indian Automobile Industry, Creating Customer Delight and Shareholder
Wealth2; finally becoming a pride of India," MUL proclaimed its vision. Customer Delight1
ensures that performance, after-sales service, and customer support are of the highest quality
and exceed customer expectations. The primary issue for a successful corporation is
shareholder wealth2. MUL recognizes this and recognizes that the "customer is king," and
that he has the power to influence the fortunes of any company; hence, the firm's brand line:
COUNT ON US.
MISSION:
A mission statement is a description of an organization's purpose, what it hopes to achieve in
the greater world, and its precise, attainable, and compelling goals. Missions are articulated in
terms of visions, and visions necessitate specific goals. MUL's key goals and missions are:
 Modernization of the Indian Automobile Industry;
 Developing automobiles faster and selling them for less money.
 Production of fuel-efficient vehicles to conserve scarce resources.
 Production of a large number of motor vehicles was necessary for economic growth.
 Market Penetration, Market Development Similarly Product Development and
 Diversification.
 Partner relationship management, Value chain, Value delivery network.

SWOT ANALYSIS: Analysis of both the internal (Strengths and Weaknesses) and external
(Strengths and Weaknesses) surroundings.
STRENGTHS:
The use of modern technologies. Management techniques in Japan (that had captured Japan
over the USA to the status of top Auto manufacturing country in the world) The advantages
of being the first to market. Recruitment is done in-house to ensure the greatest talent and
professionals. Working culture, after-sales services, distribution, diversification, and R&D
are all done in a time-consuming manner.

WEAKNESS:
Japan's SUZUKI CORPORATION is still a major factor. 10% of the components for tech
support are made outside of India. Even though MUL has introduced premium vehicles, it is
still regarded as a low-cost brand. Diversification is hampered by the existence of
manufacturing units around the country. MUL has been hampered by bureaucracy,
technological shortcomings, and decades of seclusion, stagnation, and subservience to the
whims of government administrators.
OPPORTUNITY:
Be the first firm to provide adequately built vehicles before 2008, by the government's
proposal for new ethanol (renewable) blended fuel. Other businesses lack economies of scale;
therefore the market remains open. Because the government controls the import of new
technology, there is a largely untapped market, and demand is increasing as income levels
rise.
THREAT:
The market is flooded with new technology-driven businesses and manufacturers. The
government is lowering subsidies and limiting the gas supply quota. (The Times of India,
New Delhi, 11 June 2007).
HONDA
The Honda Foundation was founded in December 1977 with gifts from Soichiro Honda, the
founder of Honda Motor Company, and his younger brother, Benjiro Honda. The Foundation
was founded following the first DISCOVERIES International Symposium, which took place
the previous year.
"Definition and Identification Studies on Conveyance of Values, Effects, and Risks Inherent
in Environment Synthesis," or DISCOVERIES, is an abbreviation for "Definition and
Identification Studies on Conveyance of Values, Effects, and Risks Inherent in Environment
Synthesis." Issues of how to reconcile human activities with the earth's ecosystem were
actively explored at this first symposium from a wide variety of perspectives. The reaction to
this strategy was overwhelmingly positive, with several requests to continue and broaden
these dialogues. To address these challenges, the Foundation was founded in 1977.
Since then, the DISCOVERIES series of international symposia have been organized 11
times in various world-renowned locations, covering a wide range of themes. Since then,
there have been various types of seminars and symposia held every year on a variety of
timely topics, all of which have been highly regarded. The international symposium in 2000
discussed the topic of what form regional cooperation in East Asia should take, and since
then, there have been various types of seminars and symposia held every year on a variety of
timely topics, all of which have been highly regarded.
The Honda Prize was created in 1980 by the Foundation to honor people or groups that have
made significant contributions to the field of ecotechnology. Since then, the Foundation has
continued to celebrate scientists who have made significant contributions to the world.
The Honda Young Engineer and Scientist Award (Y-E-S Award) was founded in 2006 to
encourage the next generation of scientists and engineers to pursue careers in science and
technology. The Foundation intends to increase its reach in the future to attract more brilliant
persons in this sector, particularly for students in Asia.
The Foundation has widened its operations in this way to stay up with the times up to the
present. The foundation for this has been our founder, Soichiro Honda's, earnest belief that
"science and technology must help to secure people's pleasure." This is the Honda
Foundation's mission.
CORPORATE PROFILE AND DIVISIONS:
Honda's headquarters are in Tokyo's Minato district. The Tokyo Stock Exchange and the
New York Stock Exchange, as well as exchanges in Osaka, Nagoya, Sapporo, Kyoto,
Fukuoka, London, Paris, and Switzerland, all trade their shares.

Geographical Distribution of Honda's Net Sales and Other Operating Revenue in 2019

VISION AND MISSION OF THE COMPANY:

VISION:
We are the most innovative and forward-thinking Honda organization, offering the finest
value solutions to our customers and partners.
MISSION:
We pledge to build client trust by providing convenient and efficient automobile services
performed by highly skilled and value-oriented staff. We continue to produce major business
outcomes for our stakeholders in pursuit of our mission.
 RESPONDENTS
The employees of these above-mentioned companies were the subject of this inquiry. The
questionnaires were distributed around the firm. Representatives of these firms, who work on
a regular schedule in various departments of the associations, were allowed to answer the
questionnaires. The questionnaire was distributed among different employees of different
organizations in severe departments.

CHAPTER 4
DATA ANALYSIS

In this chapter, we have represented the data that was collected with the help of a
questionnaire. The data collected is represented with the help of tables and various types of
graphs, diagrams, etc.

1. Age groups

Age Count of Age percentage

 Group
18-30 27 65.85%
30-40 14 34.15%
above 40 0 0.00%
Grand 41 100.00%
Total
The table represents the age group of various respondents and the graphical representation of
the above table is given below

Age

34%

18-30 30-40
66%

above 40

The above pie diagram represents the age of the various respondents, and we can see that
there are 34% respondents of age 18-30 and 66% respondents of the age 30-40.

2. Marital status

Marital Count of Marital percentage

status status
Married 20 48.78%
Unmarried 21 51.22%
Grand 41 100.00%
 Total
The said table states the marital status of the respondents out of 41 respondents 20 are
married respondents and 21 are unmarried respondents the above data is represented in the
form of the pie diagram below.

Marital status

Married Married
Unmarried 49% Unmarried
51%

The above data state the marital status of various respondents as there are 51% of
respondents are unmarried and 49% of respondents are married.

3. Education Qualification

Educational Count of Education Percentage

Qualification Qualifications
Graduate 23 56.10%
HSC 10 24.39%
Post 5 12.20%
Graduate
SSC 3 7.32%
Grand Total 41 100.00%

The said table states the educational qualification of the respondents as there are 23
respondents are graduates, 10 are HSC 5 respondents have done post-graduate degrees and
only 3 respondents have done SSC out of 41 respondents.
 SSC
7%

Post Graduate
12%

Graduate
56%
HSC
25%

The above data represents the educational qualification of the respondents the data is as
follows 7% SSLC, 12% postgraduate, 25% HSC, and 56% of respondents are graduates.

4. Occupation

Occupation Count of percentage

Occupation
private job 14 34.15%
retired 1 2.44%
self 26 63.41%
employed
Grand Total 41 100.00%

The above table shows the occupation of various respondents out of 41 respondents 14 are
doing private jobs, 1 respondent is retired and 26 respondents are self-employed. The above
data is represented with the help of the pie diagram below.
 Occupation

34%
private job
retired
self employed
63%
3%

The above graph represents the percentage of occupation of the respondents as we can see
that there are 14 respondents are doing the private job, 1 respondent is retired and there are
26 self-employed respondents which are highest as it contains 63 percent of total
respondents.

5. Do you know about goods and service tax?

knowledge about Count of do you know about goods percent

GST and service tax?
yes 40 97.56%

no 1 2.44%

Grand 41 100.00%
Total

The above table states the information related to the knowledge of GST of respondents 40
respondents said yes and only 1 respondent said no relating to the knowledge of the GST.
The above data is presented in the form of the graph below.
 knowledge about goods and service tax

2%

yes
no

98%

The above graph is the representation of the data which was represented in the tabular form
above as we can see there is 97 % of respondents responded as yes and only 1 respondent
responded as no out of 41 respondents.

6. do you know about the automobile sector?

knowledge about knowledge about the percentage

the automobile automobile sector
sector
yes 40 97.56%
no 1 2.44%
Grand Total 41 100.00%

The above table states the knowledge of the respondents regarding the automobile sector.
And we can see 40 respondents said yes they have the knowledge regarding the automobile
sector and 1 respondent responded as no out of 41 respondents. The above data is represented
with the help of the diagram below.
 2%

yes
no

98%

As we can see the data which is given in the tabular form is presented with the help of the pie
diagram above as 98 ends are knowing the automobile sector and only 2 percent said they
don’t know the knowledge of the automobile sector.

7. do you think GST will be easier to comply with

Compliance Count of do you think GST will be easier to percentage

comply with
difficult 13 31.71%
don't know 10 24.39%
easier 18 43.90%
Grand 41 100.00%
Total

The said table states the 41 respondents who responded to the compliance with GST 13
respondents responded as difficult 10 respondents responded as no and 18 respondents
responded as easier to comply with the GST. The above data is presented in the graphical
form below.
 compliance with GST

32%
44% difficult
don't know
easier

24%

The above graph represents 4of 4 % of respondents said it would be easier to comply with
GST 32% respondents responded as it would be difficult and 24% respondents responded as
don’t know regarding the compliance of GST.

8. The software equipped to handle GST

The software equipped Count of does your current software is equipped to percentage
to handle GST handle the GST
no 4 9.76%
yes 37 90.24%
Grand Total 41 100.00%

The data presented in the form above states the software is equipped to handle just as 37
respondents responded as yes and 4 respondents responded as no out of 41 respondents. The
above data is presented in the graphical form below.
 software is equipped to handle the GST

10%

yes
no

90%

The above pie diagram is the presentation of the information which was presented in the
tabular format. As 1of 0 % respondents responded as no their current software is not
equipped to cope with the GST and 90% of respondents responded as yes that their current
software is equipped to cope with GST.

9. Plan to cope with GST

Plan to cope with Count Percentage
GST
yes 37 90.24%
no 4 9.76%
Grand Total 41 100.00%

The said table states whether the respondents have a specific plan or policy to cope with the
GST. And we can see 37 respondents have responded as yes and 4 are responded as no which
was out of 41 respondents the above data is represented in the form of graphical
representation below.
 plan to cope with GST

10%

yes
no

90%

As we can see in the above graphical representation 90% of respondents have responded as
yes they have a specific plan or policy to deal with the GST, and only 10% of respondents
stated no as their response.

10. software solution for the client

software solution for the Count percentage
client
no 10 24.39%
yes 31 75.61%
Grand Total 41 100.00%

The above table states the information about the respondents are having the software solution
for the client and as we can see 10 respondents have responded as no and 31 respondents
who have respondents who have responded as yes which is out of 41 respondents.
The above data is represented in the form of the graphical representation below.
 100%
100%
99%
99% 24.39% 75.61%
98% percentage
98% Count
97%
97%
96%
no
yes

The data which is in the tabular form is represented in this graphical form as we can see there
are 24.39% of respondents responded as no because they don’t have a software solution for
the client. And 75.61% of respondents responded as yes that they have a software solution
for the client.

11. Threshold limit exemption

Threshold limit exemption count of the respondents percentage

correct 11 26.83%
don’t know 3 7.32%
too high 15 36.59%
too low 12 29.27%
Grand Total 41 100.00%

In this regard, we asked out our respondents their view regarding the threshold exemption
limit and we received the following responses out of 41 respondents 11 correct, 3 don’t
know, 15 too high, 12 too low. The above tabular data is represented in the form of the graph
below.
 Threshold exemption limit

29% 27%
correct
dont know
too high
7%
too low

37%

As we can see there are 29% responded as the threshold exemption limit is too low and 37 %
of respondents answered as it is too high, 7% of respondents responded as don’t know and
27% of respondents stated as the threshold exemption limit is correct.

12. Available legislation

AVAILABLE LEGISLATION COUNT PERCENTAGE

no- need more clarity 15 36.59%

yes - satisfactory 26 63.41%
Grand Total 41 100.00%

The above table states whether the available legislation is satisfactory or not whether it needs
more clarity. 15 respondents responded as no it needs more clarity and 26 respondents stated
as yes, it is satisfactory. The above data is represented in the form of graphical
representation.
 available legislation

37%
no- need more clarity
yes - satisfactory
63%

The above pie diagram is the representation of the data which was in tabular form as we can
see there are 63% of respondents responded as yes, it is satisfactory that the available
legislation and 37% of respondents answered as no it needs more clarity.

13. GST affected the overall sale of vehicles

GST affected the Count of does GST affects the percentage

The overall sale of vehicles overall sale of vehicles
no 8 19.51%
yes 33 80.49%
Grand Total 41 100.00%

In this regard, we asked out our respondents whether the GST affected the overall sale of
vehicles as we can see that 8 respondents responded as no the GST did not affect the overall
sale of vehicles. And 33 respondents out of 41 respondents responded as yes the GST gas
affected the overall sale of vehicles.
 does GST effect on the overall sale of vehicles

20%

no
yes

80%

This data is derived from the tabular information presented in this pie diagram we can see
that there are 80% of respondents who have responded as yes that the GST has affected the
overall sale of the vehicles and 20% of respondents responded as no the GST has not affected
the overall sale of the vehicles.

14. GST affected the booking of vehicles

GST affected the booking of vehicles GST affected the booking of vehicles percentage

no 10 24.39%
yes 31 75.61%
Grand Total 41 100.00%

As we can see in the above table, we have collected the data regarding does GST affected the
booking of vehicles from 41 respondents and we have got 31 as yes it has affected the overall
sale of the vehicles. And 10 respondents have responded as no it does not have affected the
booking of the vehicles. The above data is represented in the form of the graph below.
 GST affected the advance booking of vehicles

24%

no
yes

76%

The above graphical representation states that the GST affected the booking of vehicles as we
have got 76% response as yes it has affected the booking of vehicles and 24% vehicles as no
it does not affect the booking of vehicles.
15. Know about GSTN server
Know about Count of do you know about GSTN Percentage
GSTN server server
no 3 7.32%
yes 38 92.68%
Grand Total 41 100.00%

The data regarding whether the respondent has the knowledge about the GSTN server as we
have to go following responses out of 41 respondents 38 as yes and 3 as no the above data is
presented in the graphical form below.
 do you know about GSTN server?

7%

no
yes

93%

As we can see in the above pie diagram 93% of respondents responded as yes they know
about the GSTN server and 7% of respondents responded as no they don’t know about the
GSTN server.

16. Experience with GSTN server

Experience with GSTN server Experience count percentage
bad 4 9.76%
good 37 90.24%
Grand Total 41 100.00%

The data relating to the experience of the respondents with the GSTN server is collected and
represented in the tabular form as we have 37 respondents who responded as good experience
with the GSTN server and 4 respondents responded as having a bad experience with the
GSTN server.
 experience with GSTN

10%

bad
good

90%

The data which was presented in the tabular form is presented in the graphical form as we
can see that 90% of respondents responded as they have good experience with the GSTN
server and 10% of respondents responded as bad they have a bad experience with the GSTN
server.
17. Potential of the automobile industry to generate revenue after GST?
Potential of the automobile industry to generate revenue after Count Percentage
GST
Don't know 5 12.20%
No 9 21.95%
Yes 27 65.85%
Grand Total 41 100.00%

The data relating to the potential of the automobile industry to generate revenue after GST
implantation is collected and presented in tabular form. 27 respondents have responded as
yes the automobile industry has the potential to generate revenue after the GST
implementation 9 responded no and 5 responded as they don’t know. The above data is been
presented in the graphical form below.
 potential of automobile industry to generate revenue after GST

12%

Don't know
22%
No
Yes
66%

The tabular data is represented in the graphical form as 66% of respondents responded as yes
the automobile industry has the potential to generate revenue after implementation of GST,
22% responded as no and 12% of respondents responded as they don’t know.
18. Satisfaction with the deadline for GST compliance?

Satisfaction Satisfaction with the deadline given for GST Percentage

with the deadline for compliance
GST
compliance
no 9 21.95%
yes 32 78.05%
Grand Total 41 100.00%

The data related to the satisfaction with the deadline given for GST compliance as we have
received 32 responses as yes and 9 responses as no . the given data is been presented in the
form graph below.
 satisfaction with the deadline for GST

22%

no
yes

78%

As the tabular data is presented in the form of the graph as there are 78% responses that they
are satisfied with the deadline for GST compliance and 22% responded as no they are not
satisfied with the deadline given for the compliance.

19. Does GST increase the burden of compliance?

Does GST increase the burden of GST increased the burden of compliance Percentage
compliance
no 7 17.07%
yes 34 82.93%
Grand Total 41 100.00%

The above data was collected and represented in the tabular form as the respondent was
asked whether GST increased the burden of compliance and we have the following responses
34 responses are yes that GST has increased the burden of compliance and 7 respondents
responded as no. the above data represented in the graphical form below.
 GST increased the burden of compliance
compliance

17%

no
yes

83%

The above graphical representation states that 83% of responses are reporting yes the GST
has increased the burden of compliance. And 17% of respondents reported no that the GST
does not increase the burden of compliance.

20. Do you know about various tax slabs of GST?

Do you know about various tax slabs of GST Know about various tax slabs of percentage
GST
no 2 4.88%
yes 39 95.12%
Grand Total 41 100.00%

The data relating to the knowledge of respondents regarding the various tax slab in the GST
is collected and classified. As we have 39 responses reporting yes they know the various tax
slabs of the GST. And 2 respondents responded as no out of 41 respondents. The above data
is presented in the graphical form below.
 know about various tax slabs of GST

5%

no
yes

95%

The tabular data is presented here in the graphical form as 95% of responses are reporting as
yes, they know various tax slabs, and 5% responses are no they don’t know various tax slabs
of GST.

21. Do you think GST will become positive for commercial vehicle sales?

Do you think GST will become positive for GST will become positive for percentage
commercial vehicle sale commercial vehicle sales?
no 9 21.95%
yes 32 78.05%
Grand Total 41 100.00%

The data relating to the GST will become positive for commercial vehicle sales is been
collected and classified. As we have a total of 41 responses in which 32 responses are yes
that GST will become positive for commercial vehicle sale and 9 responses are no GST will
not become positive for commercial vehicle sale the above data is been presented in the
graphical form below.
 GST will become positive for commercial vehicle sale?

22%

no
yes

78%

The above diagram represents the information about the GST will become positive for
commercial vehicle sale as we have the following responses 78% responses are yes that GST
will become positive for commercial vehicle sale and 22% said no it will not become positive
for commercial vehicle sale.

22. How GST has impacted the pricing of final vehicles?

How GST has impacted the pricing of should government eliminate cess on percentage
final vehicles the cars under GST?

no 9 21.95%
yes 32 78.05%
Grand Total 41 100.00%

The related to government eliminate cess on the car under GST is been collected and
classified as there are 9 respondents responded as no government not to eliminate cess on
GST and there are 32 respondents in the favor that government should eliminate cess on the
car under GST.
 should government eliminate cess on car under GST.

22%

no
yes

78%

The tabular data is represented in the form of a graph here as we have 78% responses stating
yes, the government should eliminate cess on the car and 22% are no government should not
eliminate cess on the car under GST.

23. How GST has impacted the pricing of final vehicles?

How GST has impacted the pricing of GST has impacted the pricing of percentage
final vehicles final vehicles
Don’t know 9 21.95%
price to the customer has decreased 22 53.66%
price to the customer has increased 10 24.39%
Grand Total 41 100.00%

The data relating to the GST has impacted the pricing of final vehicles is collected and
presented in the tabular form. As here we have 9 responses as don’t know 22 responses are
of the price to the customer has decreased and 10 are of that price to the customer has
increased. The data below is presented in graphical form below.
 GST has impacted the pricing of final vehicles

22% dont know

24%

price to customer has

decreased
price to customer has
increased
54%

As we have the graphical data which states that 24% of respondents responded as the price to
the customer has increased due to GST 22% said they don’t know and 54% of respondents
stated that the prices to the customer have decreased due to GST.

24. Are you facing issues in claiming a refund under the GST regime?
Are you facing issues in claiming a refund Facing issues in claiming refund percentage
under the GST regime under the GST regime
no 6 14.63%
yes 35 85.37%
Grand Total 41 100.00
%

The data relating to facing issues in claiming refund under GST regime is collected and
classified below as 35 respondents responded as yes they are facing issues in claiming refund
under the GST regime. And 6 respondents out of 41 respondents responded as no. the
graphical representation of the data is given below.
 facing issues in claiming refund under the GST regime

15%

no
yes

85%

Here is the graphical representation of the facing issues in claiming refunds under the GST
regime. There are 85% responses as yes that they are facing issues in claiming refund under
the GST regime and 15% responses state they are not facing the issues in claiming refund
under the GST regime.

25. Do you purchase any vehicle after the implementation of GST?

Do you purchase any vehicle after Purchased any vehicle after percentage
the implementation of GST implementation of GST
no 4 9.76%
yes 37 90.24%
Grand Total 41 100.00
%

The related to the purchase of any vehicle after implementation of GST is collected and
classified as we have 37 responses as yes they have purchased the vehicle after the
implementation of GST and 4 respondents responded as no they did not purchase any vehicle
after implementation of the GST. The above data is represented in the form of the graphical
form below.
 purchased any vehicle after implementation of GST

10%

no
yes

90%

The above graphical representation states that there are 9respondentsdent responded as yes
they have purchased the vehicle after the implementation of GST. And 10% of respondents
responded as no they have not purchased any vehicle after implementation of GST.
26. what kind of vehicle you have purchased?
what kind of vehicle you have what kind of vehicle you have purchased percentage
purchased?
commercial vehicle 22 53.66%
Non-commercial vehicle 19 46.34%
Grand Total 41 100.00%

The data relating to the what kind of vehicle the respondent has purchased that is a
commercial vehicle or non-commercial vehicle as we are having 22 respondents as they have
purchased commercial vehicle. And 19 respondents responded as non-commercial vehicles
which are out of 41 respondents.
 what kind of vehicle do you have? purchased
purchased

46% commercial vehicle

54% Non-commercial vehicle

This is the graphical representation of what kind of vehicle the respondent has purchased
after the implementation of the GST. As there are 46% responses are in the form of non-
commercial vehicle and 54% responses are as a commercial vehicle.

27. Do you know the difference between commercial and non-commercial vehicles?
Do you know the difference between Difference between commercial and Percentage
commercial and non-commercial non-commercial vehicles
vehicles?
no 6 14.63%
yes 35 85.37%
Grand Total 41 100.00%

The above data is related to whether the respondent knows the difference between a
commercial vehicle and a non-commercial vehicle as we are having 35 responses as yes they
know the difference between the commercial and non-commercial vehicle and 6 responses as
no. data below is interpreted in the graphical form.
 difference between commercial and non- commercial vehicles

15%

no
yes

85%

The above data is stating that 85% of respondents responded as yes and 15% responded as no
that they don’t know the difference between commercial vehicles and non-commercial
vehicles.

28. How GST has impacted employment in the automobile sector?

How GST has impacted the GST has impacted employment in the percentage
employment in the automobile automobile sector
sector
decreased employment 7 17.07%
increase employment 6 14.63%
somewhat affected 25 60.98%
worst affected 3 7.32%
Grand Total 41 100.00%

The data relating to how GST has impacted employment in the automobile sector. As we are
having the following responses out of 41 responses. 7 as decreased employment 6 as
increased employment 25 as somewhat affected and 3 as worst affected. The above data is
represented in the graphical form below.
 GST has impacted the employment in automobile sector

7%
17%
decreased employment
increase employment
15%
somewhat affected
worst affected
61%

Here is the graphical form of tabular data as we are having 61% responses somewhat affected
15% stated that GST has impacted the employment in automobile sector.17% as decreased
employment and 7% respondents responded as GST has impacted the employment in the
automobile industry.

29. Do you think GST will improve the? The economic condition of the country

Do you think GST will improve the? GST will improve the economic percentage
The economic condition of the country condition of the country
no 4 9.76%
yes 37 90.24
%
Grand Total 41 100.00
%

The data relates to whether the respondent thinks that the GST will improve the economic
condition of the country. And out of 41, respondent 4 responded as no GST will not improve
the economic condition of the country. And 37 respondents responded yes that the GST will
improve the economic condition of the country. The above data is represented in the
graphical form below.
 GST will improve the economic condition of the country

10%

no
yes

90%

The graphical representation of the GST will improve the economic condition of the country
is as follows 90% of the respondent stated as yes GST will improve economic condition as
10% as no the GST will not improve the economic condition of the country.
30. Which segment has been affected most by the effect of GST?
Which segment has been affected The segment has affected most with percentage
most with the effect of GST the effect of GST
commercial segment 29 70.73%
Non-commercial segment 12 29.27%
Grand Total 41 100.00%

The above table states which segment has affected the most with the effect of GST is
collected and classified. Out of 41 responses, 29 responses responded as commercial segment
and 12 reported as non-commercial vehicle segment the majority is in the commercial
segment so according to our survey commercial segment has affected the most with the effect
of the GST.
 which segment has affected most? with effect of GST

29%
commercial segment
non-commercial segment
71%

The graphical representation of the data states that there are 71% of responses as the
commercial segment has affected the most with the effect of GST and 29% of responses are
that the non-commercial segment has got less response compared to the commercial segment.

31. Are you satisfied with the way GST was introduced in the country?
Are you satisfied with the way Satisfied with the way GST introduced in the percentage
GST was introduced in the country
country?
no 13 31.71%
yes 28 68.29%
Grand Total 41 100.00%

The above data is collected and classified with are respondents satisfied with the way GST
was introduced in the country. As we are having 28 as yes responses these respondents are
satisfied with the way GST was introduced in the country. And there are 13 responses as no
that they are not satisfied with the way GST was introduced in the country. The majority of
people are satisfied with the way the GST was introduced in the country. The above data is
represented in the graphical form below.
 satisfied with the way GST introduced in country

32%

no
yes

68%

As we can see according to our survey 68% of respondents said yes they are satisfied with
the way GST was introduced in the country. And 32% of respondents responded as no they
are not satisfied with the way GST was introduced in the country, as we can see the majority
of respondents responded as yes according to survey which was based on the questionnaire.
 CHAPTER-5

Summary of Findings,
Conclusion and
Suggestion
Findings
The GST or the Goods and Services Tax bill was the biggest talk of this year's
budget. Some say that it could upset the balance of the economy, some are saying it is flawed
in its current state whereas others are saying that if it isn't passed it could lead to a crisis in
the Indian economy.
Now manufacturers like Maruti-Suzuki and Hyundai are all in favor of the GST in its
current format as it gives small car manufacturers massive tax reductions. For the carmakers,
the GST is undoubtedly good news but till it gets implemented, they run the risk of losing
sales as people may hold on to their car purchase till July 2017. With the festive season
around the corner, the gravity of this trend only seems to compound further but in the long
run, the GST is set to benefit each one of us, beyond the automotive industry and more. In the
end, though, the customer wins and remains the king. Now let's hope the GST
implementation doesn't hit a roadblock.GST was implemented from July 1, 2017. The day
marked changes in most tax structures and

would help India unite under a single framework.

 The Goods and Services Tax (GST), which went into force in 2017, is a non-
discriminatory tax that affects a wide range of industries.
 According to the results, 98 percent of respondents are aware of the goods and service
tax, with only 2% reporting that they are unaware of the tax.
 According to the findings, 98 percent of respondents are aware of the Indian car industry,
with only 2% of total replies indicating that they are unaware of the business.
 The majority of people say they have a particular plan and policy in place to deal with
GST.
 Commercial and non-commercial vehicles make up the majority of the car industry, with
the former being vehicles such as three-wheelers, minibusses, and so on, and the latter
include personal automobiles. (Including SUVs, budgeted cars, luxury cars, etc).
 The respondents were aware of the commercial and non-commercial segments of cars.
 Due to the installation of GST in the nation, many advanced car bookings were impacted.
 Many of our responders were already familiar with the different GST tax bands.
 When it comes to the influence of GST on the vehicle industry, several potential
consequences may be detected.
 From the perspective of end-consumers, GST has had a mixed bag of good and bad
effects.
 We had several indirect taxes in India before the adoption of GST and the unification of
taxes, with each state having its indirect tax system. Following the establishment of the
GST, all of these levies have been merged into a single tax.
 GST has improved automotive production by lowering taxes to one and making the
taxation structure simpler than previously.
 Whether the transaction is intra-state or inter-state, the transfer of automobiles to other
individuals would be subject to GST.
 GST has been a success in terms of compliance. Although many of our respondents
believe that GST compliance has increased as a result of the new tax regime, the previous
state-by-state compliance system has now been replaced with a single-window for all
compliance-related matters, according to our research, many of our respondents believe
that compliance has increased as a result of the new tax regime.
 The impact of GST on the final price to the client is reduced, according to the data we
gathered through the questionnaire.
 GST is now not doing well, but citizens of the country will appreciate the government for
taking steps to improve the tax system throughout the country in the future.
 When it was decided to apply GST in an unprepared way beginning in July 2017, it was
transformed from a beneficial step to an ill-conceived and harmful tool to put the
economy in bad shape. As a result, many of our respondents are dissatisfied with how
GST was administered across the country.
 The majority of the populace is aware of GST thanks to the media.
 The GST changes, according to many of our respondents, will aid India's economic
recovery.
 The most important finding we discovered throughout our study is that respondents
believe that the installation of the GST has harmed employment in the vehicle sector.

Suggestions
 The public proposed that a seamless, clear, and easy transition provision be implemented
that is easily understood.
 A special emphasis should be placed on GST awareness and training for all officials,
experts, and assessors.
 Any issues about the implementation of the GST should be handled as soon as possible.
 An expert group should be constituted to suggest changes to the Constitutions, and the
recommendations should be made public.
 The general population is likewise unaware of the GST's benefits. As a result, to
guarantee that the GST is implemented efficiently, the government should issue suitable
guidance to the public outlining the procedures for GST implementation.
 Finally, the government must guarantee that the GST revenue is properly managed.
 The car industry wants the government to help by creating an environment that
encourages the growth of the business.
 Following the establishment of the GST, the consumer now wins and remains the king.
 To meet the complications of calculating GST, many major organizations would need to
modify their enterprise resource planning software, which is a type of business
management software. SAP and Oracle are the key players in the Indian ERP industry.
ERP lets firms manage and monitor everything in the company, including supply chain,
financial, and even human resource activities.
 Anti-profiteering measures should be reconsidered since they may excessively burden
firms. It is recommended that the system be
 The Advance Authority for Rulings should be operational as soon as possible, as the GST
law has been in effect since July 1, 2017.
 Instead of several cash ledgers, a single cash ledger should be utilized, with separate cash
ledgers for CGST, SGST, IGST, interest, penalty, and so on. It is also proposed that
partial / period payment of tax offset be allowed so that an assessee only has to pay
interest on the short payment.
 The challenges that the exporters are facing should be addressed, and the reimbursement
procedure should be initiated as soon as possible.
 Rates should be rationalized and decreased to make India more competitive, as well as to
promote compliance and economic progress. The maximum rate should be set at 18
percent, and just a few things should be excluded.
 A transitional credit of tax paid in an earlier regime shall be provided for capital goods
received on or after July 1, 2017 (Capital goods in transit). Transitional input credit
should also be offered for items or services supplied or received before the scheduled
delivery date but invoices received after the scheduled delivery date.
 Through collaboration and the application of sophisticated technology, automotive
makers must take efforts to mitigate these problems.
  The Indian government should urge citizens and businesses to follow the GST
regulations in the letter.
 In addition, the government should take steps to reduce the burden of GST
compliance.
 Automobile businesses should have meetings with marketing and sales executives,
production managers, and customer service representatives to develop a strategy. 20.
The automobile sector is anticipating the implementation of GST. However, there are
several issues with the GST model that must be addressed. Restrictions and
constraints on tax credit eligibility for company assets are also a key source of worry,
and the credit method should be liberalized. GST will be a boost to the vehicle sector
in general.
 Businesses must modernize their enterprise resource planning systems (ERP)

Conclusion
India has many taxes in a place like an excise, sales tax, service tax, entertainment tax,
VAT, etc. These taxes are divided at the Central as well as state level. These bundle amount
of taxes are difficult to manage and sometimes causes inconvenience to businesses and
customers. GST aims to solve it with a single indirect taxation system.
GST has been the buzzword in the country for the last few days and finally, the bill has
passed, leading to the realization of "One country, one tax", at least on papers for now. Goods
and Services Tax Network (GSTN) is a non-profit organization formed to create a platform
for all the concerned parties i.e., Stakeholders, government, taxpayers to collaborate on a
single portal. The portal will be accessible to the central government which will track down
every transaction on its end while the taxpayers will be having a vast service to return file
their taxes and maintain the details.
However, as states have correctly pointed out, petroleum-related products (and alcohol) as the
biggest source of revenue for state governments, maybe this is for the better. Nevertheless,
the automobile industry is looking forward to the introduction of GST. However, there are
quite a few concerns in the draft Model GST.
GST has proven beneficial to enterprises in the vehicle industry in terms of compliance. The
prior state-by-state compliance structure has been replaced by a single point of contact for all
compliance issues has absorbed several taxes, including the CST, VAT, Service Tax, Entry
Tax, Excise Duty, and so on. Instead of dealing with many officers for various tax authorities,
corporations now simply have to deal with GST officials. It has also been helpful to the
government because of the GST income sharing between the Centre and the States.
Because GST is a consumption-based tax rather than an origin-based tax, it will raise income
for many states because the number of customers would rise.
Finally, from the perspective of end-consumers, GST has had a mixed bag of good
and bad effects. Because, on the one hand, there is a rise in the cost of commercial vehicles,
which inflates the selling price of daily consumable products. On the other hand, under the
Anti-Profiteering Act, the GSTN Council streamlined the procedure of input credit
mechanism on produced and traded items, offering relief to end-consumers. This would
encourage corporations and enterprises to pass on the benefits of the input tax credit to the
general public by lowering maximum retail prices of items on a big scale. The differing
charges based on the different classifications and engine capacities of automobiles in the non-
commercial vehicle area have been established with this in mind.
The impact of GST on the car industry, in particular, is seen as a positive since
automobile makers would have to pay lower taxes, which will benefit buyers. Various taxes
were applied before GST, including sales tax, road tax, sector tax, VAT, motor vehicle tax,
registration charge, and so on. These have all been included in the GST on vehicle services.
The GST tax on autos has greatly decreased the cost of moving products in India since it
eliminates the need for checkpoints and numerous fees. When compared to pre-GST costs, it
has cut the cost of autos across the country. The overall impact of GST on the vehicle sector
is beneficial since it has decreased the cost of goods.
The Indian government is considering implementing GST as a way to boost income
and lower the country's deficit. The adoption of GST is a positive change in India's face, and
the government should be properly prepared for it since it is a symptom of the country's fast-
paced economy. According to the findings of this survey, Indians' understanding of the
benefits of GST is still relatively poor. It might be a result of a lack of GST understanding or
information. As a result, the government should consider how to improve people’s
understanding of GST. Furthermore, they should devote more resources to disseminating
information and teaching citizens about GST so that citizens have a favorable opinion of it.
Bibliography & Webliography
Bibliography
 Chaurasia, P., Singh, S., & Sen, P. K. (2016). Role of Good and Service Tax in the
Growth of Indian economy. International Journal of Science, Technology, and
Management.
 Empowered Committee of Finance Ministers (2009). First Discussion Paper on Goods
and Services Tax in India, the Empowered Committee of State Finance Ministers,
 New Delhi. o Kumar, N. (2014). Goods and Services Tax in India: A Way Forward.
Global Journal of Multidisciplinary Studies
 Khurana, & Sharma, A. (2016). Goods and Services Tax in India-A Positive Reform
of Indirect Tax System. International Journal of Advanced Research
 Vasanthagopal, R. (2011). GST in India: A Big Leap in the Indirect Taxation System.
International Journal of Trade, Economics, and Finance

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http://auto.economictimes.indiatimes.com/news/policy/benefitschallenges sector-in-GST-
bill/53541153
http://www.abplive.in/auto/gst-bill-how-it-affects-the-autosector-391864
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about-indias-biggest-tax-reform/
ANNEXURE
II Survey questions

1. do you know about goods and service tax?

2. do you know about automobile sector?
3. do you think GST will be easier to comply with?
4. does your current software is equipped to handle the GST?
5. does your business have a policy for plan specifically to cope up with GST?
6. do you have any software solution for your client to handle the proposed GST?
7. do you think threshold exemption limit is correct?
8. is available legislation regarding proposed GST is satisfactory or do you feel need for
more clarity?
9. what was the impact of GST on the sale of vehicles when it was introduced?
10. does GST effect on the overall sale of vehicles?
11. does GST affect the advance booking of vehicles?
12. do you know about GSTN server?
13. how was your experience with GSTN server?

14. do you think automobile industry has potential to generate revenue after GST
implementation?
15. are you satisfied with the deadline given for GST compliance?
16. does GST increase the burden of compliance?
17. do you know about various tax slabs of GST?
18. do you think GST will become positive for commercial vehicle sale?
19. should government eliminate cess on car under GST?
20. how GST has impacted the pricing of final vehicles?
21. are you facing issues in claiming refund under the GST regime?
22. do you purchase any vehicle after implementation of GST?
23. if yes what kind of vehicle you have purchased?
24. do you know the difference between commercial and non-commercial vehicles?
25. how GST has impacted the employment in automobile sector?
26. do you think GST will improve the economic condition of the country?
27. which segment has affected most with effect of GST?
28. are you satisfied with the way GST was introduced in the country?