“Study of GST implementation in transition period in

Anchor Pvt. Ltd.”

Summer Training Report submitted to Uttarakhand Technical University

in Partial fulfillment of the requirement for the award of

Master of Business Administration

By

Shivangi Bhatia

Under the supervision of

Naveen Dwivedi
Department of management studies
OIMT

Omkarananda Institute of Management Technology

Rishikesh
2016-17

1
 Table of content
 Company Certificate……………………………………………………3
 Candidate’s Declaration……………………………………………….4
 Guide’s Certificate……………………………………………………...5
 Acknowledgement………………………………………………………6
 Executive Summary…………………………………………………….7
 CHAPTER-1
Company profile ………………………………………………….8
 CHAPTER-2
Introduction of study
Literature Review………………………………………………...33
Objective…………………………………………………………39
Background of study…………………………………………….40
 CHAPTER-3
Research
Methodology…………………………………………...53
 CHAPTER-4
Findings, Limitation, Conclusion and Suggestion……………….54
 CHAPTER-5
Bibliography……………………………………………………...59

2
Company Certificate

3
 Candidate’s Declaration

Shivangi Bhatia

Omkarananda Institute of Management Technology

Rishikesh

Statement by the candidate

I hereby state that the Summer Training Report entitled “study of GST
implementation in transition period in anchor Pvt. Ltd.” submitted by me in
partial fulfillment of the requirements for the award of MBA degree, is my
original work and that it has not previously formed the basis for the award of
any other degree, Diploma, Fellowship or other similar titles.

Date: Shivangi Bhatia

4
 Guide’s Certificate

Naveen Dwivedi

Department of Management studies

OIMT, Rishikesh

This is to certify that the Summer Training Report entitled “study of GST
implementation in transition period in anchor Pvt. Ltd.” submitted by (Shivangi
Bhatia) is a bonafide record of research work done by him under my guidance
and supervision.

Project Guide

Naveen Dwivedi

5
 Acknowledgement

I would like to thank my reverent supervisor Mr. Naveen Dwivedi of finance

department, undertake this study. His continuous assistance, guidance, advice gives
me unending inspiration and strength to complete the study. I am also grateful to
my colleagues for their sincerest suggestion.

I would convey my sincere gratitude to Anchor Private Limited for their support
and help. I would like to mention few names without whose help this training
would have not been possible they are Mr. DeshrajKushwah, Miss. Santosh Pal
and Mr. Prateek Gautam thanks are also due to workers, staffs and officers who
spent many of their valuable times to discuss with me.

Date:- Shivangi
Bhatia

6
 Executive summary
Anchor is the subsidiary company of Panasonics. It is a japan based
company. Anchor work on the principles, value and morals of Panasonics. It
follows all the principles layed down. The primary motive of the company is the
safety and welfare of its workers and employees.

Anchor has total number of 39 plants all around. A newly established one
is in Daman. Anchor’s mission is tomanufacturing unique product that are eco-
friendly and innovative, energy saving and at the shame time world-class
products for making user’s life easy, safe and feel comfortable to be used. They
have a huge variety of product line for different classes of consumer. Product
ranging from economic price products to the high range price products.

The different product ranges are Roma, Penta, Modular, non-modular and
switch gears. Anchor manufactures large variety of switches. The company also
produces wires, MCB’s, RCCB, isolators, distribution boards, ceiling fans,
conduit pipes etc. it even deals in solar panel system but it does not
manufactures it on its own level.

There are various departments within the organization i.e. accounts,

human resource, facility management, logistic, IT, purchase, etc. The working
of all the departments in the organization is very systematic and well executed.
There is no pressure of unnecessary burden on the heads of the employees as
they does there work timely and properly. The working environment in the
departments is very healthy and smooth. Everyone has a very harm feeling
towards one another. All the employees are very friendly, kind and helpful too.
None of the employees were proudy or mean.

It was a privilege for me being a part of this wonderful working

atmosphere and I hope I would be a part of this atmosphere in the coming future
aswell.

7
 CHAPTER-1
COMPANY PROFILE
INTRODUCTION
Established in 1963, The Panasonic Corporation is the parent company of
ANCHOR ELECTRICALS PVT.LTD. Panasonic acquired Anchor which is the
50-year-old Indian electrical equipment brand, in the year 2007.The managing
director of Anchor is Mr.TakakiOguri.The Company produces variety of
electrical low-voltage switches and accessories, switchgear, protection devices,
wires & cables, lamps & luminaries and fans.

The company’s new manufacturing unit has been setup at Daman, India.
The investment for the plant was Rs 200 crores and it produces a complete
range of wiring devices. The capacity of production of that plant is of 240
million units. The factory adopts a line of green features which includes
installation of LED lighting, use of treated sewage water & solar panels

Since 50 years, Anchor has tried to seek the attention of citizen in this
country. It came with a unique vision of manufacturing products of outstanding
quality. It stood at a position when all other sector of manufacturing electronics
products was unorganized.

Anchor’s takeover is the second largest takeover in the

electronicsector.Its a chance of pleasure for Panasonic to be placed in Japan.
Anchor has taken it upon itself to conserve the environment, thus opening a
path to a safer, healthier and environment friendly lifestyle.

Anchor's unification with Panasonic created a fusion of expertise

technology and vast distribution potency. Anchor offers a ample range of more
than 3000 products across different product groups. The products are sold with
assistance of many dealers and  retail outlets.

8
 Firepro which is an infrastructure & security solutions giant has been
recently acquired by Anchor. This acquisition helped Anchor to expand in terms
of growth. In best of the electrical market Anchor is creating a best worldwide
image in consumer’s mind & market.

Working with Anchor, you have the chance to be part of a heritage as

well as build a new life after being a member of two outstanding brands in India
and Japan. With its unique preposition-

 Innovative approach.
 Integrity.
 Ability to value the market requirement of customers.
 A  positive mindset to change constantly is what they expect from
their new entrants.
 Offerings or improving protection of electrical products that light
up our homes with happiness
 Efficient utilization of energy of electrical product,
 They are continuously endeavoring to bring new technologies to
build a better life, a better world.

COMPANY PROFILE

Over the last 60 year, Anchor has managed to capture the attention of
every citizen in this country. It started with a humble vision of manufacturing
electrical products of outstanding quality at a time when the market involving
electrical switches or wiring devices was handled by the unorganized sector.
The advent of Anchor not only organized the sector, but also brought electrical
accessories into mainstream commerce. As a brand, Anchor signifies Trust,
Safety and Reliability. These qualities have helped Anchor carve a niche for
itself in the electrical accessories market.

Anchor is solely responsible for the manufacturing and marketing of

world-class eco-friendly products that have added value to the lives of people.
The ideology of Panasonic's founder, ‘Konosuke Matsushita' drives the
everyday business at Anchor. It states that "the company must contribute to
society through its business as a public entity."

9
 Anchor is a part of the second largest conglomerate in the electronic
industry. As a proud part of the Panasonic Corporation that is located in Japan,
Anchor has taken it upon itself to conserve the environment, thus paving a path
to a safe, healthy and environment friendly lifestyle.

Anchor's merger with Panasonic resulted in a fusion of technological

expertise and vast distribution strength. Today, Anchor offers a wide range of
more than 3000 exciting products across various product groups. These
products are sold with the help of 5000 dealers and 450,000 retail outlets.

Firepro, an infrastructure and security solutions giant, was recently

acquired by Anchor. This acquisition helped Anchor further its horizons in
terms of growth and expansion. Dominating the electrical accessories market
and playing a pivotal role in the country's. Infrastructure development, Anchor
continues to deliver reliable services and long lasting products of top quality in
India and other neighboring markets.

EVOLUTION

Anchor's foundation dates back to about five decades when it had started
as a small business venture. Anchor accomplished the challenging task of
delivering nothing but the best to its end users at the most reasonable price.
Anchor's acquisition by 'Panasonic', the world's most trusted brand, has made it
more proficient with technological advancement and supremacy in the product
design and development arena. This path-breaking evolution has done a lot
more than just add a touch of advancement in the lives of people.

Anchor enjoys an extraordinary position in the eyes of youthful Indians.

Over the course of time, Anchor's transformation in terms of innovation and
efficiency has served generations as per their requirements by bringing in
advancement in the products.

The collaboration of Panasonic's technical competence and global

persona with Anchor's matchless excellence in Quality, Safety and Reliability
has ensnared the minds of the next generation.

The world of electrical solutions today has evolved beyond recognition.

The prominence of Anchor as India's only "Switches Super Brand" testifies to
the fact that it is still the most respected brand to be leading this business
vertical. Anchor was the first one to introduce India to the piano-type switch in
1976, which still holds a special position in the industry. Needless to say, in all
quarters of this nation, an electric switch simply means Anchor.

10
MILESTONES

The world of complete electrical solution has evolved beyond

recognition. The reputation of Anchor as India’s most trusted super brand is still
in its hands instead of many new entrants. It is the most respectful leading brand
of this sector.

It started a long journey from the year 1963

1963

Foundation of the company in Mumbai with manufacturing of Tumbler

switches.

1971

Commissioning of Valsad factory (Wiring Devices)

1973

First Piano switch unveiled under the brand Penta.

1978

Initiates manufacturing of the monoblock switches Dyna.

1984

Commissions Valsad Unit -ll and starts manufacturing switches from

Engineered Polymers

 1989

Commissions Valsad Unit for fans.

11
1993

Unveils Roma Modular Switches

1994

Commissions Daman unit for Wiring Devices Starts manufacturing

incandescent Bulb and Fluorescent Tubes.

1999

Starts manufacturing Fire Retardant Wires

2000

Receives ISO 9002 Certification Enters into a joint Venture with Ave Spa Italy
to introduce Ave Luxury Switches

2001

Acquires RiderStarts manufacturing Switchgear & Protection devices

2003

Begins manufacturing of High Precision Digital Energy Meters and Energy

Efficient CFL

2004

Unveils Woods Premium Switches & Accessories

2005

Commissions the Sidicul Unit of Haridwar for Switches & Accessories and
Switchgear

12
2006

Receives Consumer Super Brands Status for product Category (Switches &
accessories)

2007

Matsushita Electric Works, Japan acquires 80% stake in Anchor Adds T5

Lighting portfolio

2009

Becomes a wholly owned subsidiary of Matsushita Electric Works. Receives

Business Super brand Status Unveils a new CFL

2010

Acquires Globus Lamps Unveils its first major channel partner loyalty program
Zulu Launches Roma Viola Switches

13
2011

Introduces Ave Sistema 44 Luxury range of switches and accessories from Ave
Italy. Receives Consumer Super brand status for Switches and accessories.
Commissions New Fan Factory at Dhamdachi.Unveils Panasonic Switchgear
MCB, RCCB and Isolator Partners with IIID (Indian Institute of Interior
Designers) to host IIID Awards for Excellence in Interior Design

2012

Commissions 1st Greenfield facility at Daman (Unit V)Acquires majority stake

in Fire pro Systems Pvt. Ltd Introduces Panasonic - Vision Switches Panasonic
Vision receives ‘Good Design Award 2012’ by Japan Institute Of Design

2013

Launches Panasonic Ventilation Fans range. Introduces Residential Lighting

range of Panasonic, Panasonic Vision Wiring Devices awarded IF Product
Design Award in Germany. Awarded ‘Masterbrand’ status

14
2014

 Awarded Asia’s Most Promising Brand Unveils Uno Switchgear Starts selling
Solar Modules under Anchor & Panasonic Brands Unveils LED Lighting for
Commercial, Retail and Hospitality Sectors Panasonic HIT Solar PV Module
wins Gold Award for Innovative Product at Acetech Awarded Global HR
Excellence awards for: outstanding Contribution to the cause of Education and
Innovative HR Practices by World HRD Congress

2015

Unveils Penta Modular Switches Awarded Global Excellence awards for:

Outstanding Contribution to the cause of Education and Diversity Impact by
15
World HRD Congress Award for Continuous Innovation in HR Strategy at work
Initiates CSR Project at Jawahar and in villages near Haridwar Starts offering
EPC services for Solar Customers

16
 COMPANY’ BUSINESS OBJECTIVES
GROWTH: -

To ensure a steady growth by enhancing the competitive edge of

“ANCHOR” , Electricals and electronics in existing business, new areas and
international operations so as to fulfill national expectations from “Anchor”.
Company has boosted up to 200% in comparison with previous financial
disclosure i.e. 2006-07.

PROFITABILITY:-  

To provide a reasonable and adequate return on capital employed,

primarily through improvements in operational efficiency, capacity utilization,
productivity and generate adequate internal resources to enhance the company's
growth. Optimum utilization of resources and honest efforts for progress have
enlightened the path of prosperity and profitability.

CUSTOMER FOCUS: -

To build a high degree of customer confidence by providing increased

value for his money through international standards of product quality,
performance and superior services & effective marketing networks is developed
to make a reach over millions of consumers all over the world.

PEOPLE- ORIENTATION: -

To enable each employee to achieve his potential, improve his

capabilities, perceive his role and responsibilities and participate and contribute
positively to the growth and success of the company. To invest in human
resources continuously and be alive to their needs is the prime orientation of the
group. Employees in “Anchor” are not serving the company but they are
participating in the business of the company. All the employees are the members
of “Anchor Family”.

17
TECHNOLOGY:-

To achieve technological excellence in operations by development of

indigenous technologies and efficient absorption and adaptations of imported
technologies to suit the rapidly changing requirements of the business. A
combination of highly skilled working professionals and supreme quality of
machinery and technical feedback is developed for better results.

MISSION & VISION

APEL mission is manufacturing unique product e co friendly and

innovative, innovative, energy saving world-class products for making user’s
life easy, safely and feel comfortable.

CORPORATE VALUES

Integrity & Honesty

We will be fair and honest in all our business dealing and personal
conduct.no matter how talented and knowledgeable we may be, without
personal integrity, we can neither can earn the respect of other nor enhance our
self-respect.

Teamwork

We will pool our ability to accomplish our shared goals.no matter how
talented we are individuals without cooperation and team building we will be a
company in name only.

CustomerFocus

We are committed to highly expectation to our customer in every time.

We believe that our branded quality always responsiveness will lead to higher
and greater of customer loyalty.

18
Accountability

We shall be every time accountable of our action and we always

committed to our objective and transaction-oriented, thereby earning respect
from others.

Innovation

We shall continuously adapt our thinking and behavior to meet the ever-
changing condition around us, Taking care to act in harmony with nature to
ensure progress and success in our goal.

Adaptability

We will continually adapt our thinking and behavior to meet the ever –
changing conditions around us, taking care to act in harmony with nature to
ensure progress and success in our endeavors.

Social responsibility

We are committed towards making a positive and proactive contribution

to the community. As a responsible corporate we will contribute to and abide by
environment and legal norms.

19
 DIVISION AND BRANCHES OFANCHOR
ELECTRICALS PVT. LTD.

There are 39 Branches of ANCHOR ELECTRICALS PVT. LTD., they are

as follows:

BRANCHES OF ANCHOR

1. AEPL, Kolkata
2. AEPL, Faridabad
3. AEPL, Ranchi
4. AEPL, Mumbai (H.O.)
5. AEPL, Raipur
6. AEPL, Madurai
7. AEPL, Valsad
8. AEPL, Vijaywada
9. AEPL, Hyderabad
10.AEPL, Bagalore
11.AEPL, Goa
12.AEPL, Patiala
13.AEPL, Jaipur
14.AEPL, Daman
15.AEPL, Guwahati
16.AEPL, Chandigarh
17.AEPL, Dehradun
18.AEPL, Delhi
19.AEPL, Jammu
20.AEPL, Indore
21.AEPL, Chennai
22.AEPL, Lucknow
23.AEPL, Cuttak
24.AEPL, Allahabad
25.AEPL, Thalassery

20
26.AEPL, Hissar
27.AEPL, Noida
28.AEPL, Hubli
29.AEPL, Kanpur
30.AEPL, Kutch
31.AEPL, Bankarpur
32.AEPL, Bhiwandi
33.AEPL, Bhagalpur
34.AEPL, Bhopal
35.AEPL, Varanasi
36.AEPL, Daman
37.AEPL, Gaziabad
38.AEPL, Bhubneshwar
39.AEPL, Cochin

21
 1. MAJOR COMPETITORS OFANCHOR
ELECTRICALS PVT. LTD.
SI.
NO. Company Country
1 General Electric                    USA
2 LMZ                                  Russia
3 NEI                                . U.K
4 Raytheon                        USA
5 Rolls Royce                             Germany
6 Sanghai Electric Co.                China
7 Seimens                        Germany
Czechoslovaki
Skoda                              
8 a
9 Technopromoshexport                Russia
10 Westinghouse                    USA
11 Wipro                        India
12 Havells                        India
13 Snider                        Russia
14 Indoasian                        Asian
15 GE Group                       U.S.A
16 Bajaj                                         India
17 Electro Consult                    Italy
18 Franco Tosi                France
19 Fuji                            Japan
20 GEC Alsthom                   U.K
21 General Electric                  U.S.A
22 LMZ                                  Russia
23 NEI                            U.k
24 Raytheon                    U.S.A
25 Rolls Royce                    Germany
26 Sanghai Electric Co.               China
27 Seimens                        Germany
28 Skoda                       Czechoslovika
29 Technopromoshexport            Russia
30 Westinghouse                    USA

22
CLIENTS
Sr
Organization Name of the Project Location Product
No

Mahindra Life Mahindra Life

1 Mumbai ROMA
Spaces Spaces

 
SubhGriha Housing
2 TATA Housing Boisar,Mumbai
Complex

Kotak Mahindra Kotak Mahindra

3 BKC, Mumbai ROMA
Bank Bank

4 Shoppers Stop Shoppers Stop Mall PAN INDIA ROMA

5 YES BANK YES BANK PAN INDIA ROMA

 
6 ONGC Uran, Mumbai ROMA

7 Godrej Properties Planet Godrej Byculla, Mumbai WOODS

 
8 Reliance Industries Nagpur Penta

9 Future Group Home Town PAN INDIA ROMA

10 SBI SBI PAN INDIA ROMA

23
11 JET AIRWAYS International Airport Mumbai, Bangalore ROMA

ROMA,
12 L & T Ecc PAN INDIA PAN INDIA
PENTA

Adani Institute of
13 Adani Infrastructure Bhuj, Gujarat ROMA
Medical Collage

PAN INDIA
14 Axis Bank Axis Bank ROMA
Branches

24
CERTIFICATES TO ANCHOR
ELECTRICALS PVT.LTD.

25
 
 

26
Awards

Product Design

The 'Panasonic Vision' range of switches and accessories added

another feather in the cap for Anchor Electricals Pvt. Ltd. It is awarded
with the prestigious IF award for excellence in product design by the
International Forum of Design for 2012-13.

'IF' awards are globally acclaimed across various industries and

are awarded for excellence in three domains of design which are
Product Design, Communication Design and Packaging Design. Only a
product that meets the stringent criteria of IF such as excellence in
functionality, manufacturing method and design is nominated by the jury
panel of global experts to receive this award.

 
 

27
Superbrand

SuperBrand is a distinguished organization that has established

itself globally. It has managed to direct appreciation towards itself and is
currently paying tribute to the finest brands present throughout the world.
Even with its notable existence in the market, SuperBrand continuously
acknowledges the persistence of custodians towards building their
brands. It also helps these custodians stay resilient without worrying
about the current economic conditions.

Business Superbrand

Anchor has been honored as a Consumer Superbrand four times

in a row and has proven itself as a Business SuperBrand in India.

Most Trusted Brand

Anchor's Lighting Business Unit was recognized as the

'Consumer's Most Trusted Brand in Lighting' and is also a proud winner
of the 'Most Trusted Brand' award. Consumers themselves voted for the
winner of this award in a survey conducted by the reanowned magazine
'Reader's Digest'.

Over a period of 14 years, the Reader's Digest Trusted Brands

survey has brought a number of trustworthy Asian brands to light. This is
a trademark event for the magazine in Asia and is quite popular
worldwide too.

28
 AEPL - HARDWAR PROFILE

 INFORMATION ABOUT AEPL HARDWAR UNIT

 PRODUCT PROFILE OF HARDWAR UNIT

AEPL HARDWAR UNIT

ANCHOR ELECTRICALS PVT. LTD. is situated at Raipur near Hardwar.
There are four manufacturing plants situated in ANCHOR
ELECTRICALS PVT. LTD. On the southern side is State Industrial
Development Corporation Limited (SIDCUL), set up is made for
Compressed Moulding Articles, originally the basic products of AEPL.
With Japanese collaboration i.e. Matsushia Electrical Works (MEW). The
plant went into production in 2004 and is engaged in the manufacturing
of electrical accessories called “PENTA”.  Located immediately to the
above mentioned southern plant of AEPL is the plant located in
Bahadrabad established under the norms of Uttar Pradesh State
Industrial Development Corporation (UPSIDC) which is presently
governed by SIDCUL. Set up with Japanese collaboration for the
production ofsemi-finished goods of various electrical range of AEPL like
ROMA, RIDER, NOA and WOODS etc.  The remaining two sites are
also located at Bahadrabad manufacturing the Semi-Finished Electricals
Accessories to complete the production profile of ANCHOR
ELECTRICALS PVT. LTD.

    All the units of ANCHOR are environment friendly and the norms
of pollution control are strictly followed here. To maintain the natural
environment in Factory Premises a very soothing combination of
Greenery and Plantation is developed. With regular care and personal
touch the premises of ANCHOR has become one to the most attractive
Unit of SIDCUL

                                          

29
 PRODUCT PROFILE

ANCHOR PRODUCTS
 Switches & Accessories
 Lighting and luminaries
 Wires and cables
 Switchgear and protection
 Fans

PANASONIC PRODUCTS
 Switches & Accessories
 Ave
 Roma viola
 Woods
 Roma
 Rider
 Penta                   
 Accessories
 Boxes
 Doorbells
 Flexicords
 Spike guards
 Metal boxes

Downlights

 LED Downlights
30
  CFL Downlights
 MCB
 Isolator

Home automation system

Video door phones

Living light controller.

31
 SWOT ANALYSIS OF
ANCHOR ELECTRICALS PVT. LTD.

-S-T-R-E-N-G-T-H-S-

 Low cost Producer of quality equipment due to cheap labour and

fully depreciated plants.
 Flexible manufacturing set up.
 Independent & Integrated Manufacturing Setup.
 Comprehensive turn key experience from product design to
commissioning.

-W-E-A-K-N-E-S-S-E-S-

 Extreme Dependency on human resources.

 Inability to provide export financing.

-O-P-P-O-R-T-U-N-I-T-I-E-S-

 High expected growth in electrical sector

 High Growth forecast in India's index of industrial production would
increase demand for expanding industrial scenario.

-T-H-R-E-A-T-S-

 Technology suppliers are becoming competitors with the opening

up of the Indian economy.
 Fall in Global prices can affect profitability.

32
 CHAPTER-2
INTRODUCTION OF THE STUDY
LITERATURE REVIEW
TAXATION
Taxation refers to that amount of the money which should go to the
revenue of the government form the income of the income earner.
Taxation is the most important source of revenue for the government. It
generates funds from the collection of taxes from different sources.  It is
a compulsory charge incurred on the income of the individual or
corporate. The income so collected by the government is used for the
welfare of the society and for raising the standard of living of the people.

            All the type of taxes imposed by the government should

have the approval of the legislation and should be passed under the law.
The government does this to finance the activities of its working. In
economics, taxes fall on whomever pays the burden of the tax, whether
this is the entity being taxed, like a business, or the end consumers of
the business's good

There are two types of taxes:-

Direct taxes

Direct taxes are those taxes that are directly levied on the income
of the tax payer. The burden of this tax cannot be shifted. It will be paid
by the person on whom it is levied. There are many different types of
direct taxes:-

 Real property tax
 Personal property tax
 Income tax
 Taxes on assets.

33
Indirect taxes

Indirect taxes are taxes that are not directly levied on the income
of the taxes payer they are incurred in an indirect way. That is the
reason there burden can be shifted from one person to the another who
finally consumer it.

There are different types of indirect taxes:- 

 Service tax
 Central excise
 Customs duty
 Value added tax (VAT).
 Luxury tax etc.

These were the various indirect taxes that were applicable earlier in the
tax system but after the implementation of GST all other taxes are
removed and only GST is applicable all over the nation.

34
 GST
GOODS AND SERVICE TAX
India’s tax system is among the most complex of the world-157 th

rank in terms of ease I taxation, according to recent PWC LLP report. In

countries where GST has been implemented , businesses typically get a
year to prepare, after the law is finalized . Given the timelines of India
GST, the industry has very short time to manage this transition.

   Deloitte’s David Raistrick told ET in an interview:

      “:India is the only country that is doing it(invoice-to-invoice

matching). This is unique……People will have to comply or they will fall
out of the GST chain,”

“It is the right time to do as it’s a new tax. It’s going to happen
everywhere. It should generate more revenues for the government and
improve compliance,”

      “It will make it harder for people to use cash and for people to
be in business and not pay tax”

GST is one indirect tax for the whole nation, which will make India
one unified common market.

 GST is a single tax on the supply of goods and services, right from
the manufacturer to the consumer. Credits of input taxes paid at each
stage will be available in the subsequent stage of value addition, which
makes GST essentially a tax only on value addition at each stage. The
final consumer will thus bear only the GST charged by the last dealer in
the supply chain, with set-off benefits at all the previous stages.

35
GST is divided into three categories:-

 SGST
 CGST
 IGST

SGST:-
I
C
T
S
G
It is the State Goods and Service Tax that is applicable only
on the transactions that will take place within the states and the tax
so collected form them will go to the state government.
For example:- if there is a transaction between that state of
Uttarakhand and the state of Uttar Pradesh so the tax charged will
go to the state government.

CGST:-

It is the Central Goods and Service Tax that is applicable on

the transactions within the state and the tax collected from the
transactions will be collected by the central government.

IGST:-

It is the Integrated Goods and Service Tax that is applicable

on the transactions occurring between interstate and import. The
tax so collected will be share between the central and the state
government in an equal proportion.

The major features of the proposed registration procedures under GST

are as follows:

36
  Existing dealers: Existing VAT/Central excise/Service Tax payers
will not have to apply afresh for registration under GST.
 New dealers: Single application to be filed online for registration
under GST.
 The registration number will be PAN based and will serve the
purpose for Centre and State.
 Unified application to both tax authorities.
 Each dealer to be given unique ID GSTIN.
 Deemed approval within three days.
 Post registration verification in risk based cases only.

Benefits of GST
Benefits to economy

 To create unified common national market.

 To boost “Make in India” campaign and India as a “Manufacturing
hub”.
 To boost investments & exports.
 To generate more employment by increased economic activity.

 Simplified Tax Structure

 Simpler tax regime with fewer exemptions.
 Reduction I multiplicity of taxes now leviable on goods & service
leading to simplification.
 Harmonization of laws procedures and rates of tax across the
country.
 Common system of classification of goods & services to ensure
certainty in tax administration.

 Tax compliance easy

 Greater use of IT will reduce human intervision between tax payers
and tax administration.

37
Advantage for Trade & Industry

 More efficient neutralization of taxes to make our exports more

competitive internationally.
 Steamless flow of tax credit from manufacturer/supplier to
user/retailer to eliminate cascading of taxes
 Common procedures for registration, duty payment, return filling
and refund of taxes.
 Benefit of exemption compounding scheme for a large segment of
small scale suppliers to make their products cheaper.

SI. PARTICULAR EXISTING TAX GST METHOD

NO. METHOD
1 The activity of manufacture Excise duty NA
2 The activity of sale VAT NA
3 The activity of service Service tax NA
4 The activity of interstate CST NA
sale
5 The supply of goods NA CGST and SGST
6 The supply of service NA CGST and SGST
7 Transaction of interstate Excise duty IGST (CGST and
supply of goods and applicable and SGST)
services CST/VAT exempted
8 Taxation method Supplier location Recipient
destination
9 Entry tax provision applicable Subsumed in GST
10 Input tax credit for GST NA Input tax credit
eligible
11 Statutory forms C, F1, E1 forms All statutory forms
applicable abolished
12 Waybills applicable Applicable
13 Transaction of imports CVD and SAD IGST (CGST and
applicable SGST)
14 Valuation-transaction value Applicable Applicable
method
15 Valuation-MRP value applicable Not applicable
method

OBJECTIVE OF THE STUDY

38
 To know about what GST basically is
 To gain full knowledge about the implementation of GST
 Study on GST implementation in transition period in Anchor electrical
private limited
 To study the working of the finance department in Anchor Electrical
Private limited

39
 STUDY
Various processes taken in AEPL in the
transitional period of GST implementation
 Plan and preparation
 Master setup
 Training
 Change over period
 Final implementation

Plan and Preparation

Before any working starts, there has to be a proper planning for that work
to be done in an efficient and effective way likewise, in the implementation
process of the GST there were proper planning and presentation of all the
relevant documents that would be further required in the working of AEPL.
Proper meeting were conducted with different departments like accounts,
operational, human resource (HR), facility management, IT etc. for making
them aware about the work to be done and how it is to be done. Various duties
and responsibilities were assigned to the various individuals and departments
collectively.  Various Gantt charts were prepared for various departments.

GANTT CHART

This is a alternative or complementary approach to network analysis. It also

provides a graphical representation of project activities and can be used in both
project planning and control. A Gantt chart is a horizontal chart where the
length of the bar represents the duration of the activity. When a Gantt chart is
used to help control a project it is usual to use two bars, one showing the
planned duration and the second showing the actual duration.

To create a Gantt chart:

 Display a schedule of activities using bars.

 List the activities down the side of the page.

40
  Using a horizontal timescale, draw a bar for each activity to represent the
period over which it is to be performed.
 Both budgeted and actual timescales can be shown on the same chart.

This could then be expressed in a Gantt chart using the most common method,
the bar chart, the start of which is shown below. The budgets for the activites
are shown, together with the actual durations underneath:

Benefits of Gantt charts:

 In addition, the Gantt chart has further advantages over network analysis:
 Assists in indentifying those activites that need to be completed before
the next activity can start(dependent activities), and those that can happen
at the same time(parallel activities)
 The Gantt chart will show the minimun completion time for the project,
and will allow for sensitivity analysis to be introduced into the project.
 Easier visualization of relationships.
 Unlike CPA,activities are drawn to scale so the most significant activities
can be highlighted.
 It is drawn in real time.
 Actual duration can be shown alongside budget.
 Aids resources allocation.

41
Limitations of Gantt charts:-

The Gantt chart is a useful tool for tracking your project and anticipating delay
problems before the final deadline is compromised. However, it will be of
limited use when you have to deal with relatively large project team. The more
complex the team structure the higher the likelihood of schedule delays.

Remember, charting phases and monitoring progress is only a tool, not the
solution itself.

For the more complex project the Gantt chart has the following limitations:-

 It does not identify potential weak links between phases.

 The chart does not reveal team problems due to unexpected delays.
 The chart does not coordinate resources and networking requirements
needed at critical phases of the schedule.
 It does not show the degrees of competition for each phase.

42
List of documents / Activities required for GST Implementation Purpose
Date : 01.05.2017
S.No. Particulars Responsibility May'2017 June'2017 July'2017
Due Date

W1 W2 W3 W4 W5 W1 W2 W3 W4 W5 W1 W2 W3 W4 W5
1 Supplier GST Registration number to be collectd Operation
5-May-17 Target

Actual
2 Update GST information of all Sppliers in Oracle IT
15-May-17 Target

Actual
3 100% Cenvat / Service Tax credit as on 30 Jun Taxation 9-Jun-17 Target
Actual
4 ITC on opening stock of 1st July (Unit-2), Cenvat, Accounts
9-Jun-17 Target
CVD, SAD, VAT in direct Sales ratio.
Actual
5 Service Tax --> all bills related to service upto 30 Operation
Jun, bill to be booked in Jun itself. (To be 9-Jun-17 Target
checked and confirm by Parshuram San )
Actual
6 Revised valuation of Inventory (Unit-2) Accounts 15-Jun-17 Target
Actual
7 Intercompany transfer price list (FG) Accounts 15-Jun-17 Target
Actual
8 Intercompany transfer price list (SFG) Accounts 15-Jun-17 Target
Actual
9 Sales Invoice format finalization Taxation 15-Jun-17 Target
Actual
10 Sales Invoice stationary print (4 copies) Operation 25-Jun-17 Target
Actual
11 Changes related contants in Debit/Credit notes Taxation
25-Jun-17 Target
(format finalization)
Actual
12 SOP for expense reimbursement. Accounts 25-Jun-17 Target
Actual
13 Scrap dealer (customer), GST number to be Operation
25-Jun-17 Target
taken
Actual
14 Scrap Sales rate revision Operation 25-Jun-17 Target
Actual
15 PO Restriction : HSN Code and GST Number is IT
25-Jun-17 Target
must
Actual
16 RM Lying at Jobworker as on 30.06.2017 : Ageing Accounts
25-Jun-17 Target
report required
Actual
17 Jobwork Outstanding to be upload on Portal Taxation
25-Jun-17 Target
(Slide No. 10) Repair also
Actual
18 GST on davance excluding Deposits Accounts 25-Jun-17 Target
Actual
19 Payment within 180 Days otherwise Cenvat will be Accounts
25-Jun-17 Target
reversed (Slide No. 23)
Actual
20 Clear all Opening stock within 6 months, Operation
otherwise Cenvat will be reversed or 40% rebait 28-Jun-17 Target
we not be allowed. (Slide No. 14)
Actual
21 All GIT on 30.6.17 must enter on Portal within 60 Taxation
1-Jul-17 Target
days (Slide No. 16)
Actual
22 Excise Duty Provision not to be considered on Accounts
1-Jul-17 Target
Closing FG & Scrap
Actual
23 All pending contract (PO / WO) to be revised, Operation
1-Jul-17 Target
What contents to be revised ????
Actual
24 Format, Sequence, IT Process to be cleared of IT
below document (Slide No. 23) -
- Tax invoice (Format will be sent by Parshuram
San shortly), Bill of Supply, Debit Note / Creidt 1-Jul-17 Target
Note, Supplementry Invoice, Delivery Challan,
Receipt Voucher, Refund Voucher, Payment
Voucher
Actual
25 GSTIN No. On main Gate display board (Slide No. HR
1-Jul-17 Target
42) and copy of RC also to be placed on prominent
place of permise.
Actual

26 Seperate Billing for RCM, to be discussed what is Accounts

1-Jul-17 Target
system, need to check with IT
Actual
27 State Code should appear in Sales Invoice IT Done Target
Actual
28 Saperate record to be maintained at each Accounts
additional permises covered under common from 1st July Target
registration.
Actual
29 Jobwork RM sent in excise regmi and returned in Accounts
Routine Target
GST regmi within 6 months not taxable.
Actual
30 Oracle System Testing Accounts Within 60 Days Target
Acutal

Master setup
43
In master setup, the setting of the software i.e. ORACLE is been done. The
whole software is updated as per the requirement of the transactions.  All the
new setup were made in respect of the suppliers,customers,items,materials and
factory to factory transactions.

In respect of the suppliers master set up there GST no. are obtained and were
updated in the software so the all the suppliers can have a easy transactions with
out any problem or trouble for the company. Even to know whether all the
suppliers are registered under GST or not because there are other separate
provision for the supplies who do not have GST no. registration. Basically what
will happen in that case is the company will have more of the tax burden if the
supplier is not registered in GST.

So in that case what company did either they request the supplier to register
them self under GST or they have changed there suppliers.

The IT department generated HSN codes(Harmonized System Nomenclature)

Of the items given by the government were updated in the companies software
to distinguish one item from that of the other item. So that there may generate a
uniformity in the items of the same category and there can be a easy
computation of the taxes under GST.

After the setup of the item code were done another setup that was required was
that of customers. The GST TIN numbers of the respective customers were
asked and separately recorded oven the HSN of particular customers were also
mention under there categories with the tax rate that has to be applicable for that
particular items or goods.

Apart from the above mentioned master setups there were two more setups that
were made in this respect i.e material in the factory-finished goods and factory
to factory custom(that is a completely new setup that was not applicable
earlier.)       

Training

44
Training is an important activity in any organization because it leads to the
reinforcement of any newly activity in any organization.

Training plays a vital part in the development of human resource. It is assumed

to be even more important role in wake of the advancement of technology
which results in even increasing capabilities. Training may be defined as the
systematized tailor made programme to suit the need of a particular
organization for development /developing certain attitudes, actions, skills and
abilities in employees irrespective of their functional level.

Peter Drucker said that once

”The fastest growing industry would be training and developing as a result of

replacement of industrial workers with knowledge workers”

Same thing took place in AEPL, during the implementation of GST in its
transition period. Earlier the working patters of all the departments were
different, all the thing were maintained in some different manner. Therefore the
employees were very much resistant and many confusions regarding the
working under GST were there in the minds of the employees. Therefore there
was an immediate need for the training and development for the employees as
well as for the customers and suppliers too. The managements decided to
provide training to the employees, customers and suppliers regarding the work
procedure under GST.
Meeting were organized by the management for making the related
concerns well aware about what all things need to be done and what all
documents needs to be prepared. How the things well go and how all the taxes
will be applied on various variety of article under different categories. As there
are different tax slabs i.e. 0%,5%,12%,18% and 28%.
All the customers and supplier were
given the detail information about how important it is for them to register
themself under GST and were requested to provide there respective GST
numbers and PAN numbers because the will further help in having the proper
proof of the transaction between the concerns. They were also made aware
about the HSN(Harmonized system of nomenclature)codes of all the products.

These were all the

things that were done under the training period of GST.

45
 These are the HSN codes for the various
products used in APEL:-
HSN codes of raw material and finished goods
GST
Type Name HSN Rate
Brass Electrical
Brass Parts 85361010 28%
Electrical Part 85389000 18%
Metal Metal Strips 74092100 18%
Outer Box 48191010 12%
Inner Box 48192090 12%
Packing  Pouch 39232100 18%
Pouch 39011010 18%
Pouch 39011090 18%
Lexan 39074000 18%
Powder UF  39091010 18%
ABS 39033000 18%
Tariff
S. No. Item Description (Excise/GST) Code Rate
1 Celing Rose 85369090 28%
2 Metal Box 84804900 18%
3 Plates / Boxes (Moulded) 85381090 18%
4 Plates/Electrical Goods Parts 85389000 18%
5 Switches of Plastic 85365020 28%
6 Fuse Gear (Kit Kat) 85361090 28%
7 Plug / Socket of Plastic 85366910 28%
8 FlexicordUpto 1000W/ DB 85371000 28%
9 FAN Regulator 84149090 28%
10 Bell 85365090 28%
11 MCB, RCCB 85362090 28%
12 Motor Starter for AC Motor 85369010 28%
13 Indicator 85318000 28%
14 Electric Bell / Buzzer 85311090 28%
15 Junction Box 85369030 28%
16 Dimmer Electric Fan Regulator 85333190 18%
17 Lamp Holder of Plastic 85366110 28%
18 MCB 85362030 28%
19 Dimmer Parts 85339000 18%
20 Dimmer 85334090 18%
21 Down Light 85122090 28%
22 Fuse above 15Amp 85351020 18%
23 Electrical Appratus SFG for Industrial use 85381010 18%

46
 24 Scrap- for Molding Parts (Common) 39153090 18%
25 Scrap - UF Moulding Powder / Articles 39159090 18%
26 Scrap Aluminium Mix 76020090 18%
27 Scrap- for Brass/Copper 74040029 18%
28 Scrap MS CRC 72044900 18%
29 Oil Waste 27109100 18%
30 Scrap- Fixed Assets 72044900 18%
31 Scrap - Fixed Assets_Kg 72044900 18%

CHANGE OVER PERIOD

Nowcoming to what changes took place in the implementation period of the
GST in Anchor Electrical Pvt. Ltd. Whenever there any transformation takes
place there are changes that follows it to cope up with those changes
circumstances. So that there may not any problem in the working process in the
future or in the coming time. Likewise
changes took place in AEPL as well during the implementation of GST. First of
all, it started with the winding up of all the pailed work of the previous month
because the entries of the previous months will now be accepted 1st of July
onwards in the software that is the oracle as the tax slabs and categories were
different till the end of June and they will be different ahead. So the till June
were sorted, updated and uploaded as well.
After June ended and all the pending works were
done. From 1 July the Oracle software was completely turned of from the
st

ultimate source of the software for 5 days for its main setup for the processing
under GST. So that there may not arise any problem in the future in the working
of the company.
During the period Oracle was out of service and no work can be updated
online. The production of maximum goods were stopped and no production was
taking place during that period. Only the goods or the process that could cause a
lot of loss burden or could be harmful for the company were continued in the
same way as they were happening just the difference that took place was the, as
the software was in working therefore all the transaction that were happening
were performed and prepared manually because there need to have proof of the
things that are happening as it can’t happen just without any paper work, so they
were prepared manually. After the software reopen on 6th July and the working
started as it was, all those transactions that were prepared manually were
updated by the accounts department in the software or by all the respective
departments at their own level and all those functions that were stopped were
also stared and started working normally as before it used to. This was the
changes that took place in place while the process was in progress.

47
 Final Implementation

In the final implementation, all the details and information were

communicated to the employees and the employees were made aware
about how the work is supposed to be done and what all things they
are meant to do after the implementation of GST. All the overcoming
and resistancewere cleared from the mind of the employment.

Testing

A critical activity prior to changeover is testing the new system to

ensure that it is working correctly before going live. Ultimate
usersshould be involved in conducting tests.

48
  Realistic tests presents with a realistic example of data.
 Contrived tests presents the system with as many unusual or
unexpected events as possible to see how the system reacts.
 Volume tests presents the system with a large volume of
tractions.
 Acceptance tests presents to ensure system to meet users’ needs
That was the test taken up by AEPL that is acceptance test

Kotter, Schlesinger and Sache identified six

main method of dealing with resistance:
Method Advantages Disadvantages
Education and communication about
communication the benefit of change
should result in
employees accepting
the change
Participation employees are more
Likely to support the
Change as they ‘own’
The changes
Utilizes employee expertise.
Facilitation and Techniques, such as
Time consuming
Employees may not
agree with benefits
usually used to
reinforce another
approach.
Time consuming
Requires a strong
relationship between
management and the
Workforce.
can’t always address

49
support counselling, will help the reason for resist-
employees overcome -ance, e.g. change
their and anxieties may threaten job
about change. security.
Negotiation 1.conflict dealt with in an Time consuming
orderly fashion, Not always possible
preventing problems to reach a compro-
such as industrial action. -mise.
2.Since employees agree on
the outcome it should
encourage commitment
and preserve morale.
Manipulation and Quick May lead to future
Co-operation Relatively inexpensive problems if
individu-
(involves -als realistic that
th-
Presentation of -ey have been
Misleading manipulated.
Information or May raise legal/
Buying off key ethical problem.
Individual by
Giving them
Position of
Authority)
Power/coercion Speed Poor commitment
(compulsory Manage can implement Results in weak
Approach by required changes motivation
Management to When employees
Implement the enjoy a stronger
change) position in the
futur
-e, e.g. union
Representative
May raise legal/
Ethical problems

In AEPL, the combination of all the above approaches were applied as per
the requirement and for the better results

50
 D
m
v
g
n
u
F
d
s
h
lo
a
P
t
c
e
ir
DIRECT
SYSTEM CHANGEOVER

 The computer user ceases to operate the old system and switches
completely to using the new system.
 A cheap and convenient method but the risk is high.
Appropriate when:
 The new system has been used elsewhere and there is confidence that it
will function properly.
 The problem for the computer user will be tolerated, even if the system
fails to function properly.
 There is a need for direct changeover due to reluctance by users to ‘let
go’ of the old system.
 The cost of running two systems is too high.

PARALLEL
 The old system and the new system are both operated together for a
while. If the system performs to an acceptance level, a decision can be
taken to stop operating the old system, and change entirely to the new
system.
 Provides a degree of safety but is more expensive than the direct method
and differences between the two systems may be difficult to reconcile.

PILOT

51
  A retrospective data pilot operates the new system with the old
system. The result can be cross-checked to the existing system.
 A restrictive data pilot takes one whole part of the complete
system and runs it as the new system. If this operates correctly
the remaining elements can be transferred gradually.
 Pilot operation is cheap and easier to control than a parallel
changeover and provides a greater degree of safety as well.

Therefore AEPL, opted for the direct changeover method because

the working was completely stopped for a week so that the new
operating system can be easily installed.

CHAPTER -3

52
 RESEARCH METHODOLOGY

The purpose of the methodology is to describe the purpose involved is

the research work. This include the overall research design. Research
methodology refers to the various sequential steps to be adopted by a
researcher in studying a problem with certain object or objectives in
view.

SOURCE OF DATA COLLECTION:

Data was selected by using primary and secondary, in primary
method of the data collection the data is been collected through
personal interview and through face to face sessions with the
employees of AEPL. In case of secondary data, data is been taken
from internet.

PRIMARY DATA:
These are those data which are collected a fresh and for the first time
and thus happen to be original in character.

SECONDARY DATA:
It means data that is already available that is they refer to the data
which has already been collected and analyzed by someone else.
I have used the secondary data in making this report.
Sources are: -
 Internet
 websites

53
 CHAPTER-4
FINDINGS, LIMITATIONS AND CONCLUSION

FINDINGS

 Gained the practical knowledge of all the aspects related to the

financial transactions and GST implementation
 Various types of technical tools were uses is the implementation
process
 Various departments were held responsible as it was not just one
department work it required the coordination communication
and commitment of all the departments whole together.

LIMITATIONS

The time period of 45-60 days was not sufficient for the detailed
study
Due to continous changes in the polices and rules,only theoritical
knowledge could be gained and no practical knowledged could be
gained
The topic was very new,no past data could be attained

54
 CONCLUSION

 During the implementation period the main focus of AEPL was

to reduce all the forms of loss in there of the working of the
company can be effected but then also there were some form of
losses that were incurred due to GST.
 Manufacturing loss- as they have to stop the production of the
for a week due to the implementation process of GST
 Operational loss-there was no working taking place in any of
the departments as be software was out of work and only the

55
 most important work were been done manually rest all were on
hold.
 Most convenient and profitable methods were used for GST
implementation so the the company bear least to least losses in
the implementation process.
 Minutes were prepared for the installation of the software,
generation of TIN NUMBERS, PAN NO., generation of HSN
codes and any other related documents so that there may not be
any delay in any working.
 All the expected requirement werealways concealed with the
targeted requirement.
 GST will simply the complex and complicated indirect tax
structure and will ensure a single unified tax regime, which will
be reshaping India’s indirect tax structure.

SUGGESTION

 What I believe is that, The company could have prepared it

more well, well in advance so that all the manufacturing losses
and operational losses bearded by AEPL could have been
minimized to nil.
 They should not have stopped there manufacturing process
instead they could have gone for some another alternatives
because that was a huge loss for the company

56
 CHAPTER-5
BIBLOGRAPHY

https://gst.gov.in
www.gstcouncil.gov.in/
https://en.wikipedia.org
https://www.investopedia.com/
www.anchor-world.com/

57
58