benefits of gst, objectives, findings, suggestion, conclusion

1. Authors:
Akshara Mahesh and Karthika.k

2.  Taxes in India are levied by central and state
government. Income tax, Customs duty, Service tax &
Central excise are those which are levied by central
government. Stamp duty, land revenue, state excise,
and value added tax, is levied by state government. It
was the shortcomings of this composition that lead to
the rise of GST.
 GST is a concept that originated in Canada.
 It levied on each stage starting from purchase of raw
materials and ending on sale made to the consumers.

3.  It abolishes multiple indirect taxes in the country.
 The main motive behind this is to bring tax uniformity
and to avoid tax on tax.

4.  Defined treatment for E-commerce operators:-
 Online websites delivering to UP had to file a vat declaration,
mention the delivery truck. Tax authorities sometime seize
goods in the absence of documents. They were sometimes
considered as mediators’ by Kerala, west Bengal they did not
require VAT registration .Such differences are removed under
GST.
 Unorganised sectors are regulated:-
 Textile, construction and industries have provisions for online
compliances and payment therefore they are accountable and
regulated.

5.  Higher threshold for registration:-
 Earlier business with 5 lakh turnover was liable to pay VAT.
Now it has increased to 20 lakh which exempts small traders
and service providers.
 Registration and return filing has been made online with
simple procedure.

6.  To know the impact of GST on automobile industries.
 To know the uncertainties faced in the initial stages of GST
implementation..

7.  Secondary data which include;
 Research report
 journals
 market papers
 newspapers
 internet
 online database etc...

8. 1)To know the impact of GST on automobile industries.
Particulars Engine Before GST After GST
+ Cess
After GST Impact
Below 4
meters
Below 1.2l
petrol
31.5% 28%+1% 29% +ve
Below 4
meters
Below 1.5l
diesel
33.25% 28%+3% 31% +ve
Below 4
meters
Above 1.2l
petrol or 1.5l
diesel
44.7% 28%+19% 47% -ve
Below 4
meter
Above 1.2l
petrol or 1.5l
diesel
51.6% 28%+25% 53% -ve
SUV’s - 55% 28%+29% 57% -ve
Electric
vehicles
- 20.5% 12%+0% 12% +ve
Hybrids - 30.3% 28%+25% 43% - ve

9.  GST rate has been decreased in the budget of 2018;
 Cess was taken off in revised union budget;
 used medium, large cars and SUVs has been slashed
from the prior 28% to 18%.
 small cars and motor vehicles has been decreased from
28%to 12%.
 Decreased rate increased the demand of used car;
 Autos wouldn't witness quite a bit of an adjustment in
costs after GST, while extravagance autos will get less
expensive.

10. 2) To know the uncertainties faced in the initial stages of
GST implementation.
 the central government suggested increasing the cess
charged on SUVs and luxury vehicles from the current
rate of 15-25%,this lead to a lot of dilemma in the
automobile industry.
 anticipate for a positive demand draw after the
successful execution of GST since there is a chance for
higher level of customer interest in a unified single
market.

11.  The Government should continue with lower rates as this will
help automobile industry in increasing volume of production
as well as sales.
 Yearly revision of tax rate does not bring stability in progress
of the industry. This create negative impact as world wide
organisation shift to other markets.

12.  reduction in the tax rates of luxury cars as well as small
car would probably bring a positive impact on the
growth of the industry.
 Reviving the tax rates in the upcoming budgets might
turn out to be beneficial for automobile industry.

13. THANK YOU