MANAGEMENT OF GOODS AND SERVICES TAX (GST) AT VARUN

BEVERAGES LIMITED

GAUTAM BUDDHA UNIVERSITY

Summer Internship Report

SUBMITTED IN THE PARTIAL FULFILLMENT OF INTEGRATED
MBA PROGRAMME
(2016-2021)
BY

SHYAMVEER
16/IMB/045

UNDER THE SUPERVISION OF

Prof. SHWETA ANAND

SCHOOL OF MANAGEMENT
GAUTAM BUDDHA UNIVERSITY
GREATER NOIDA, UP (INDIA)
2019

1
 Declaration by Student

I am SHYAMVEER, Roll No 16/IMB/045 hereby declare that this project work is the result of my own
research and no part of it has been presented for any other degree in this university or elsewhere. I am solely
responsible for any error found in this work.

Date: …………………….
Place: ……………………..

Student Signature: ………………………………….

2
 To Whomsoever It May Concern

This is to certify that SHYAMVEER student of Integrated MBA VIIth Semester at School of Management,
Gautam Buddha University, Greater Noida has done a project work entitled “A Study on Management of
Goods and Services Tax” at “Varun Beverages Limited” in our Organization from 24 MAY 2019 TO 06 07
2019.

Signature of Co-Supervisor
Mr. Shivank Garg
(Asst. Manager)
Name and Designation of the Co-Supervisor

3
 Certificate from the Faculty Guide

This is to certify that the project titled “A Study on Goods and Services Tax” has been done under my
supervision by SHYAMVEER of Integrated MBA VII semester.

Name and Signature of the Faculty guide

Prof. SHWETA ANAND

4
 ACKNOWLEDGEMENT

It is my proud privilege to express my deep gratitude and ineptness to all those who enabled me to complete
my project.
I would like to express my sincere gratitude and thanks to our beloved Mr. Shivank Garg (Asst. Manager)
for his constant encouragement and invaluable suggestions throughout the course.
My gratitude goes to my lovable faculty Prof. SHWETA ANAND for the dedicated support and endless
guidance that she offered me throughout my project report process.
I am extremely grateful to my family, friends and all my well-wishers, who have given me immense support
in completing the project successfully.

5
 EXECUTIVE SUMMARY

Pepsi is a global company that was originally founded more than 100 years ago and has ballooned into a global
power in the food and Beverages industry. Pepsi merged with Frito-Lay in 1965. Tropicana was acquired in
1998 and Pepsi merged with The Quaker Oats Company, including Gatorade, in 2001. Pepsi offers pdt choices
to meet a broad variety of needs and preference from fun-for-you items to pdt choices that contribute to
healthier lifestyles.
Varun Beverages through the merger of Varun Beverages -Cola and Frito-Lay. Tropicana was acquired in
1998. In 2001, Varun Beverages Co merged with the Quaker Oats Company, creating the world’s fifth-largest
food and Beverages Company with 15 brands – each generating more than $1 billion in annual retail sales.
Varun Beverages Co’s success is the result of superior products, high standards of performance, distinctive
competitive strategies and the high level of integrity of our people.

The main objectives of this project report are:

The research has been undertaken and presented considering the following foremost objectives:
 Understanding in - depth the concept of new taxation system introduced - Goods and Services Tax
(GST) at Varun Beverages Limited.
 To evaluate the Data of GST at Varun Beverages Limited.

The major benefit of GST is that it reduces the cost of product and services. So customers will be getting the
products and services at lower cost compared to the price they need to pay in current tax structure under VAT.
It increases purchasing power and saving capacity.

The project is aimed to cover maximum knowledge of GST how it is works in the organization and how finally
data is maintained for filing the GSTR on the basis of monthly, quarterly, half yearly and yearly. The practical
knowledge has been gained mainly by working on GSTR data with the help of different software’s (e.g., Sap
and Excel) in the Finance department. This is a brief study done to have understanding of the subject Finance
how it is practically implemented, why is it necessary, its implications & the benefits.

With the reference to the GSTR Data brief knowledge has been gained how to handle huge Data and collect
all the necessary information from the Data.

6
 TABLE OF CONTENTS

S. No. Topic Page No.

1. Acknowledgement

2. Executive Summary

3. Organization Profile

4. Organization Structure

5. Organization overview

6. Literature review

7. Objectives of the Project/Study

8. Research methodology

9. Data Analysis and interpretation

10 Findings and Conclusion

11. Managerial implication/ theoretical implication

12. Suggestions

13. Limitations

14. References

15. Annexure

7
 List of symbols and abbreviations

Org Organization

Dev Development

Imp Important

e.g. Example

Etc. Etcetera

VBL VARUN BEVERAGES LTD.

Intro introduction

Mft Manufacturing

crb Carbonated

pdt product

Beverages Beverages

pdtion Production

GST Goods And Services Tax

CGST Central Goods and Services Tax

SGST State Goods and Services Tax

IGST Integrated Goods and Services Tax

GSTIN Goods and Services Tax Identification

Number

8
Organization Profile

9
 Organization Profile

Varun Beverages Limited are the second largest franchisee in the world (outside US) of carbonated soft drinks
(“CSDs”) and non-carbonated Beverages (“NCBs”) sold under trademarks owned by PepsiCo and a key player
in the Beverages industry. We produce and distribute a wide range of CSDs, as well as a large selection of
NCBs, including packaged drinking water. PepsiCo CSD brands sold by us include Pepsi, Diet Pepsi, Seven-
Up, Miranda Orange, Miranda Lemon, Mountain Dew, Seven-Up Nimbus Masala Soda, Soda, Duke’s Soda
and Sting. PepsiCo NCB brands sold by us include Tropicana (100%, Essentials & Delight), Tropicana Slice,
Tropicana Fritz, Seven-Up Nimbus, Gatorade and Quaker Oat Milk as well as packaged drinking water under
the brand Aquafina. In addition, we have also been granted the franchise for Ole brand of PepsiCo products
in Sri Lanka.

We have been associated with PepsiCo since the 1990s and have over two and half decades consolidated our
business association with PepsiCo, increasing the number of PepsiCo licensed territories and sub-territories
covered by us, producing and distributing a wider range of PepsiCo Beverages, introducing various SKUs in
our portfolio, and expanding our distribution network. We have been granted franchisees for various PepsiCo
products spread across 27 States and 7 Union Territories (except Jammu & Kashmir and Andhra Pradesh) in
India.
Although, India is our largest market, we have also been granted the franchise for various PepsiCo products
for the territories of Nepal, Sri Lanka, Morocco, Zambia and Zimbabwe.
VBL has 30 manufacturing plants in India (Gr. Noida 1, Gr. Noida 2, Kosi, Sathariya 1, Sathariya 2, Bazpur,
Jainpur & Hardoi in Uttar Pradesh, Bhiwadi & Jodhpur in Rajasthan, Nuh & Panipat in Haryana, Phillaur and
Pathankot in Punjab, Kolkata in West Bengal, Guwahati Unit 1 & 2 in Assam, Goa, Mandideep in Madhya
Pradesh, Bargarh & Cuttack in Odisha, Jamshedpur in Jharkhand, Bharuch in Gujarat, Mahul, Roha and
Paithan in Maharashtra, Nelamangala in Karnataka, Palakkad in Kerala, Sri City in Andhra Pradesh,
Sangareddy in Telangana and Mamandur in Tamil Nadu) and 6 manufacturing plants in international
Geographies (two in Nepal and one each in Sri Lanka, Morocco, Zambia and Zimbabwe). In addition, we
have set up backward integration facilities for production of preforms, crowns, corrugated boxes, plastic crates
and shrink-wrap films in certain of our production facilities to ensure operational efficiencies and quality
standards. We are part of the RJ Corp group, a diversified business conglomerate with interests in Beverages,
quick-service restaurants, dairy and healthcare. Our Promoter and Chairman Mr. Ravi Kant Jaipuria has an
established reputation as an entrepreneur and business leader and is the only Indian to receive PepsiCo’s
International Bottler of the Year award, which was awarded in 1997.

10
Goods and Services Tax (GST) is an indirect tax (or consumption tax) imposed in India on the supply of
goods and services. It is a comprehensive multistage, destination based tax: comprehensive because it has
subsumed almost all the indirect taxes accept few; multi-staged as it is imposed at every step in the production
process, but is meant to be refunded to all parties in the various stages of production other than the final
consumer. As a destination based tax, as it is collected from point of consumption and not point of origin like
previous taxes.

Goods and Services Tax (GST) – Current Scenario

(1) Need for GST- Goods and Services Tax: As per the reports of Task Force on Goods and Services
Tax (2009), the Indian taxation system led to misallocation of resources and lower productivity in
terms of economic growth, international trade, and overall development of the Indian economy.
Therefore, there was an emergent need to replace the existing tax system with a new engine of
taxation of goods and services to attain the following objectives (Roychowdhury, 2012) :
The tax incidence fell primarily on domestic consumption.
 The optimization of efficiency and equity of the Indian system is desired.
 There should be no export of taxes across the taxing jurisdiction.
 The Indian market should be brought under a single umbrella of common market.
 Enhancement to the cause of cooperative federalism.
It will bring about a phase change on the tax firmament by redistributing the burden of taxation equitably
between manufacturing and services. It will lower the tax rate by broadening the tax base and minimizing
expectations. It will reduce distortions… [And] foster a common market across the country and reduce
compliance costs. It will promote exports. Perhaps more importantly, it will spur growth.
(2) Introduction to the Goods and Services Tax (GST) : New Article 366 (12A) of the Indian
Constitution (GST India.com, 2016) defined Goods and Services Tax (GST) to mean any tax on supply
of goods or services or both except taxes on the supply of alcoholic liquor for human consumption.
New Article 366(26A) defines service to mean anything other than goods. Existing Article 366(12)
defines goods to include all materials, commodities, and articles.
As per the government, the Goods and Services Tax (GST) is regarded as a ‘Reform’ rather than
amendment in the existing Indian taxation system to sort out all backdoors and cons of the indirect
taxation system. India was one of the 123 countries in the world following the VAT taxation system.

With some major modifications, the GST would now have three prime models:

(i) Central GST: GST to be levied by the Centre.

(ii) State GST: GST to be levied by the States.
(iii) Dual GST: GST to be levied by the Centre and the States concurrently.

GST is regarded as a comprehensive and one tax system on manufacture, sale, and consumption
of goods and services at the national level. As GST is implemented, all other taxes have been
discontinued. There is now one tax, that too at the national level, strictly under the control of
the Central Government. Under GST, there is one tax for both goods and services, which are
11
 a clear tax policy and this, will improvise collections of tax. It would also lead to a clear system
and abolish tax based theft and corruption at the national level. GST being a friendly taxation
system for the corporate sector will provide easiness in tax policies, reduce inflation levels,
and make the overall system more transparent.

GST rate classification

 0% - Essential food and medicines, newspaper, education services, residential accommodation
 0.25% - Diamonds, other precious stones
 3% - Gold, silver, platinum, articles of jewellery
 5% - Common use items, sweets, restaurant services, tour operator services
 12% - Frozen meat, butter and cheese, Namkeens, Milk Beverages
 18% - Standard rate for goods and services
 28% - Luxury and sin goods such as motor vehicles (additional cess imposed on certain luxury goods)

Benefits of GST:
GST will benefit too many parties including Government, Customers and Producers. The various benefits
expected are as under:

 To the Consumers: The major benefit of GST is that it reduces the cost of product and services. So
customers will be getting the products and services at lower cost compared to the price they need to
pay in current tax structure under VAT. It increases purchasing power and saving capacity.

 To the Producers: Currently because of multiple taxes in VAT there are some complexities which
increases the cost of product, GST, Overcoming all the shortcomings of present tax structure will
reduce the cost of product. Producers will be able sale the products at lower cost which directly
increases their amount of sales and profit.

 To the Government: GST is easy to understand and implement, Customers whose income will be
increased because of lesser tax, will save more and by this government will be getting more amount
of investment from customers.

12
Organization overview

13
 Organization overview

Varun Beverages Limited

Headquarter India
Industry Type Food and Beverages Company
Type Public
Founded 1991
Founder Ravi Kant Jaipuria
Website http://www.rkjgroup.

Key Personnel of Varun Beverages Limited

As on 31st March 2018, the strength of Board of Directors was twelve comprising four whole-time directors,
Chief Financial Officer, Additional Independent Director and three independent directors. The details are as
follows:

S.
Key Personnel Designation Year
No.
1Ravi Kant Jaipuria Promoter & Chairman
2Varun Jaipuria Whole-time Director 2013
3Raj Pal Gandhi Whole-time Director 2013
4Kapil Agarwal Whole-time Director and CEO 2016
Rajinder Jeet Singh
5
Bagga Whole-time Director 2019
6 Dr. Naresh Trehan Independent Director 2015
7 Mr. Vikas Bhatia Chief Financial Officer. 2019
Chief Risk Officer & Group
8 Mr. Ravi Batra
Company Secretary 2017
9 Pradeep Sardana Independent Director 2016
10 Sita Khosla Independent Director 2018
11 Rashmi Dhariwal Additional Independent Director 2018
12 Ravi Gupta Additional Independent Director 2018

14
 Organizational Structure of Varun Beverages:

Chairman

President

Unit Manager

TDM

ADC

Customer Executive Customer Executive

Distributors A,B,C Distributors D,E

Route Agents Route Agents

Helper Helper

15
ABOUT RJ CORP

The year 1991 witnessed the inception of RJ Corp, when Mr.Ravi Kant Jaipuria signed a licensed
agreement with Pepsi, under the operating company VARUN BEVERAGES Ltd. The group manufactures
and market carbonated non-carbonated soft drinks and mineral water. With its humble beginning from one
bottling plant at Agra, the company today has 11 bottling plants and has further risen to encompass 16 new
ventures in the varied fields of retail, food and Beverages, education and real estate with operations in
India, Nepal, Sri Lanka, Mauritius, Uganda and Thailand.
Post Beverages the group ventured into restaurant business and thus instituted Devyani International
Limited (DIL), Which is engaged in running Pizza Hut, KFC, Costa Coffee, Artist outlets in different parts
the country. Later Cream Bell had it Inception in 2003, a joint venture with a “French Dairy Major”-
Candia and RJ Corp. Cream Bell has pioneered many variants in ice-cream with over 50 rich blend of
exotic international and traditional Indian Ice-cream to offer for the Indian palate. With the strong belief
to invest in quality, care and education for young minds for the future growth and development of country,
the group forayed into education. RJ Corp entered into joint venture partnership with Modern Montessori
International (MMI) Singapore, to open pre-school educational institutions across the country.

It also has franchise agreement with DPS at Gurgaon and Jaipur. Having bagged it all RJ Corp was now
looking at health care industry. And in in the year 2006, come in to being Cry banks International India a
JV between Cryobanks International USA and RJ Corp. When Ravi Kant Jaipuria announced that he
wanted to become a franchisee for fast food chain pizza hut, his family –especially his father-was horrified.
Like most conservative Marwari vegetarian families, say associates, they disapproved of any business
where meat was on the menu but Jaipuria wasn’t about to be stopped by such trifling considerations. Today,
he’s Pizza Hut’s largest Indian franchisee with 65+ restraints in north and eastern India that are churning
out piping hot pizzas throughout the day.

The total turnover of the Beverages division is Rs. 1 billion and it enjoys a healthy market share of 52%
vis-à-vis competition in the geographical domains that the group operates. This is possible through rigorous
& robust distribution set-up & aggressive deployment in the market place.

SUSTAINABILITY INITIATIVES BY COMPANY

Sustainable Dev is: “Dev that meets the need of the present without compromising the ability of future
generations to meet their own needs”. The concept was first introduced in the so-called Brundtland Report,
entitled “Our Common Future”.
Sustainable Dev is a concept that refers to Dev where emphasis is shifted from short term economic gains to
a more long term approach where there is balance between economic, social, and environmental
considerations. Sustainable Dev requires an integrated approach to decision-making linking the economy, the
environment, and society rather than a piecemeal approach. Dev of this type is a complex process of interaction
between public authorities, civil society, and the private sector. Sustainability has similar meaning as
sustainable Dev, but is used when the focus is narrower, such as sustainability within companies or the
sustainability of specific projects. VBL is also focusing on sustainable initiatives for its long growth and has
started this by initiating some programs which are as follow:

16
1) The efforts made towards technology absorption
 The Company has adapted the technology to develop Products offering better value for money to
consumers.
 It address the current issues in the global scenario for energy efficiency, eco friendliness and global
warming.

2) The benefits derived like pdt improvement, cost reduction

The Company continues to focus on the rapid Technological changes and train the manpower accordingly
to improve the pdtivity and drive cost reduction.

3) The expenditure incurred on Research and Dev.

Due to the nature of its business, the Company is not initiating any specific research and Dev. activities.

Mission and Vision of Varun Beverages Limited

Vision
 To become the most Successful & Profitable Beverages Company in the world having Market
Leadership in the territories we operate.

Our Mission
Being a Global, Growth Oriented and Profitable Org. by:
 Offering best quality & refreshing pdt to every customer & consumer.
 Being a preferred employer providing consistent growth path, respect & empowerment.
 Creating value for our stakeholders by driving excellence in our operations.
 Being responsible towards environment & society.

Our Values

 We hold strong values in business and fully respect our customers, associates and community.
 Our diversity and unity brings creativity to our relationships within our group, and to our associates.
 We continuously excel to achieve and maintain leadership position in the chosen businesses; and delight
all stakeholders by making economic value additions in all corporate functions.

17
 Swot Analysis of Varun Beverages Limited

STRENGTH:
 Strong brand image
 Broad pdt mix
 Extensive global distribution network
 VBL uses state art and fully automatic machines and technology for the pdtion and bottling of
the soft drink.

WEAKNESS:
 No cost cutting program for the Products.
 Promotional activities in the rural market are not up to the mark as compared to the urban market.
 Lacking of communication with retailers.
 PEPSI has only one cola flavor where its competitor has Coca-Cola has Coke and Thump
 It’s one of the popular brands PEPSI in Cola flavor is lagging behind with its nearest
competitor only due to high sugar content and less thrilling taste.

OPPORTUNITIES:
 Business diversification
 Market penetration in many different states of India
 It should give more incentives to the dealers in the rural areas, where there is a huge market potential.
 More lucrative schemes to be launched regularly, especially during off-season. So as to attract more
and more customers.
 Although in the cola market there are many competitors, Pepsi still has the opportunity to enlarge.
 Its market share because the cola in the market is quite monotonic.
 New innovative idea for advertisement.

THREATS:
 Aggressive competition
 Healthy lifestyles trend
 Environmentalism
 As to the threats, that Pepsi-Cola and Coca-Cola have the competition for about 80 year.
 There is another threat now a days, some local cold drinks such as Fruit bear, Parle and Sara’s
Dairy have taken their feet in the market.
 One of the in the cola segment has a very good market share due to its taste.

18
 Financial Profile and Highlights of VBL

 The operating income of the company has registered an increase of 11% from Rs. 3490 crore in Mar
2017 to, Rs. 3862 crore in Mar 2018 though profit before tax has increased by 52% from Rs. 304 to
Rs. 462 crore during the corresponding period.
 Varun Beverages limited has contributed total income of Rs. 3862.28 Crore in Mar 2018.

% CHANGE IN % CHANGE IN
Dec-18 Dec-17 Dec-16
2018-2017 2017-2016

Total Income/Gross 3,747.7 3,526.6

3,385.98 11% -4%
Sales 1 8
Total Operating 3,862.2 2,972.2
3,062.59 26% 3%
Income 8 5
Profit Before Tax 462.96 304.19 262.96 52% 16%
Profit After Tax 332.36 235.6 186.73 41% 26%
2,588.9 2,141.8
2,296.80 13% 7%
Net Worth 5 7

4,500.00 30%
4,000.00 25%
3,500.00 20%
3,000.00
15%
2,500.00
10%
2,000.00
5%
1,500.00
1,000.00 0%
500.00 -5%
0.00 -10%
Total Total Operating Profit Before Tax Profit After Tax Net Worth
Income/Gross Income
Sales

Dec-18 Dec-17 Dec-16 % CHANGE IN 2018-2017 % CHANGE IN 2017-2016

19
 Profit & Loss account of Varun Beverages in Rs.
Cr.

S.N INCOME Dec- Dec- %

o. 18 17 change
1 Revenue From Operations [Gross] 3,747. 3,385. 11%
71 98
2 Less: Excise/Sevice Tax/Other Levies 0 428.11 -100%
3 Revenue From Operations [Net] 3,747. 2,957. 27%
71 87
4 Other Operating Revenues 114.57 104.72 9%
5 Total Operating Revenues 3,862. 3,062. 26%
28 59
6 Other Income 96.22 47.39 103%
7 Total Revenue 3,958. 3,109. 27%
49 98
8 EXPENSES
9 Cost Of Materials Consumed 1,660. 1,454. 14%
30 62
10 Purchase Of Stock-In Trade 182.9 15.89 1051%
11 Changes In Inventories Of FG,WIP And Stock-In -68.79 -66.2 4%
Trade
12 Employee Benefit Expenses 411.47 319.13 29%
13 Finance Costs 194.4 191.71 1%
14 Depreciation And Amortisation Expenses 295.55 273.64 8%
15 Other Expenses 819.7 617 33%
16 Total Expenses 3,495. 2,805. 25%
53 79

17 Profit/Loss Before Tax 462.96 304.19 52%

18 Profit/Loss For The Period 332.36 235.6 41%

20
LITERATURE REVIEW

21
 LITERATURE REVIEW

The proposed GST is likely to change the whole scenario of current indirect tax system. It
is considered as biggest tax reform since 1947. Currently, in India complicated indirect tax
system is followed with imbrication of taxes imposed by unions and states separately. GST
will unify all the indirect taxes under as umbrella and will create a smooth national market.
Expert says that GST will help the economy to grow in more efficient manner by improving
the tax collection is it will disrupt all the tax barriers between states and integrate country
by single tax rate.

GST was first introduced by France in 1954 and now it is followed by 160 countries. In
India also dual system of GST is proposed including CGST and SGST.

 Ehtisham Ahmed and Satya Poddar (2009) studied “Goods and service tax reforms
and intergovernmental consideration in India” and found that GST introduction will
provide implies and transparent tax system with increase in output and productivity
of economy in India. But the benefits of GST are critically dependent on rational
design of GST.

 According to Palil et al. (2010), Public awareness towards GST is low can happen
due to introduction of GST especially in the early years such as lack of familiarity with
the new system. There are several factors that discouraged customers from accepting
GST implementation in Malaysia and the most important factor among all is a fear of
price increase and will cause the inflation.

 Dr. R. Vasanthagopal (2011) , Conducted a study on , “ GST in India : A big leap in

the Indirect Taxation System” and concluded that switching to seamless GST from
current complicated indirect tax system in India will be positive step in becoming Indian
economy . Success of GST will lead to its acceptance by more than 130 countries in
world and a new preferred form of Indirect Tax System in Asia.

 Djawadi and Fahr (2013) this study is pointed out that knowledge about tax is
important to increase the thrust of authorities and citizens. The researcher used
structure equation modelling to examine the relationships between tax awareness and
tax knowledge and researcher found that tax knowledge has positive relationship with
tax awareness. Hence, taxpayers will be more aware about tax system when they have
knowledge and understanding towards the tax system.

22
 Pinki, Supriya Kamma and Richa Verma (July 2014) studied, “Goods and
Service Tax “Panacea for indirect tax system in India “and concluded that the new
NDA government in India is positive towards implementation of GST and it is
beneficial for central government, state government and as well as for consumers in
long run if its implementation is backed by strong it infrastructure.

 Nishitha Guptha (2014) in her study stated that implementation of GST in the Indian
framework will lead to commercial benefits which were untouched by the VAT
system and would essentially lead to economic development.

 Mohammad Ali Roshidi (2016), conduct a study on “Awareness and perception of

tax payers towards Goods and Service Tax implementation. The study attempts to
find out what level of awareness and perception to GST taxpayers in Malaysia. This
study only consist of 256 civil service servants of the secondary school teachers in
the kaula kangsar, Perak. Data collected using questionnaire. The result shows that
moderate and majority of respondents give a high negative perception to the GST.
The eventually causes the majority of respondents did not accept implementation of
GST in Malaysia.

 Shakwipee (2017), A study conduct on the inquiring the level of awareness towards
GST among the small business owners in Rajasthan State, found that the main areas
to be focused include training errors and computer software availability.

 Times of India (26 July, 2017) it is stated that Sweet makers are confused with
fixing the tax for their products as the ingredients used in the sweets are taxed
separately as raw material and as finished goods the products its taxing is different
ex. Plain burfi is 5% taxed but chocolate burfi is fixed with 28%. Plain burfi mixed
with other dry fruits is of 12%. This taxing system makes the Sweet makers to get
confused on how much GST to be fixed for which product.

 Times of India dated (27 July, 2017), stated that the GST implication across
different places for the same product has wider differences which the consumers are
unaware, resulting them in surprise.

23
 Poonam (2017) The biggest problems in Indian tax system like Cascading effect
& tax evasion, distortion can be minimized by implementing GST. After
amalgamation of local state and central taxes competitiveness of industry, exporter
and company will increase. The extra revenue which can be generated from
broaden tax base structure can be utilized for the growth of nation. In economy
tax polices play an important role because of their impact on efficiency and equity.
Indirect tax reforms have been as integral part of the liberalization process since
new economic reforms.

 Vineet Chauhan (2017) , Conduct a study on “ Measuring Awareness about

implementation of GST.” A study survey of small business unit of Rajasthan State
in India. The study seeks to evaluate the awareness of the business owners about
GST difficulties they face to encase of the current awareness about it. 148 small
business owners were analyses in order to identify the awareness about GST from
Rajasthan state and the kind and extent of relief provided and the implementation
of the provision under GST Law.

 Bar hate (2017) , found that people have no doubt whatsoever regarding the
proposed benefits of GST irrespective of their business type, legal status of business
for the reason being they feel irritated by the present system which appears to be
cumbersome. Most respondents believe that GST will bring monetary gains to their
business and do not anticipate any significant boost in tax compliance costs.
Interestingly, respondents expect the spending on tax compliance to go down after
GST is implemented. The lack of information coupled with the apathy towards
reforms may paralyze the speedy implementation of this system especially in small
towns where still not a single orientation programs have been planned and executed
till date by competent authorities.

24
 Objectives of the Study

The research has been undertaken and presented considering the following foremost objectives:
 Understanding in - depth the concept of new taxation system introduced - Goods and
Services Tax (GST) at Varun Beverages Limited.

 To evaluate the Data of GST at Varun Beverages Limited.

25
 Research Methodology

The type of research method is exploratory technique.

What is exploratory research method?

Exploratory research, as the name implies, intends merely to explore the research questions
and does not intend to offer final and conclusive solutions to existing problems. This type of
research is usually conducted to study a problem that has not been clearly defined yet.
Conducted in order to determine the nature of the problem, exploratory research is not
intended to provide conclusive evidence, but helps us to have a better understanding of the
problem. When conducting exploratory research, the researcher ought to be willing to change
his/her direction as a result of revelation of new data and new insights.
Exploratory research design does not aim to provide the final and conclusive answers to the
research questions, but merely explores the research topic with varying levels of depth. It has
been noted that “exploratory research is the initial research, which forms the basis of more
conclusive research. It can even help in determining the research design, sampling
methodology and data collection method.

Data collection method in this paper were collected via secondary sources and available like
statistical data available on various websites of Indian Government, GST Council, and many
more; from journal papers; annual reports; newspaper reports; and magazine-based articles on
GST.

For the preparation of this report primary data has been used: -
Instrument used – questionnaire
Sampling technique – convenience

Advantages of Exploratory Research

1. Flexibility and adaptability to change

2. Exploratory research is effective in laying the groundwork that will lead to future
studies.
3. Exploratory studies can potentially save time and other resources by determining
at the earlier stages the types of research that are worth pursuing

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Disadvantages of Exploratory Research

1. Exploratory studies generate qualitative information and interpretation of such

type of information is subject to bias
2. These types of studies usually make use of a modest number of samples that may
not adequately represent the target population. Accordingly, findings of exploratory
research cannot be generalized to a wider population.
3. Findings of such type of studies are not usually useful in decision making in a
practical level.

27
DATA ANALYSIS AND INTERPRETATION

28
DATA ANALYSIS AND INTERPRETATION

S.No. Particulars Percentage

1. Yes 59.4

2. No 40.6

Total 100

Interpretation

From the above table it can be observed that 59.4% of respondent agrees that the GST
charges higher price of goods and services and 40.6 of respondents will not support the GST.

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 S.No. Particulars Percentage

1 Positively 78.1

2 Negatively 15.6

3 No Impact 6.3

Total 100

Interpretation

From the above table 78.1% respondents Positively agree that the GST affects the Demand of
goods and services, 15.6% are not agree and 6.3% have their no impact on their demand.

30
 S.no Particulars Percentage

1. Yes 56.3

2. NO 34.4

3. Not applicable 9.4

Total 100

Interpretation

From the above table 78.1% respondents Positively agree that the GST affects the Demand of
goods and services, 15.6% are not agree and 6.3% have their no impact on their demand.

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 S.no Particulars Percentage

1. Advisory 12.5

2. Compliance 21.9

3. Both 46.9

4. Not applicable 18.8

Total 100

Interpretation

From the above data 46.9% of respondents are agree with the advisory and compliance with
the GST affects the demand of goods services and 18.8% of are not interested with the GST.

32
 S.no Particulars Percentage

1. Less than 25% 21.9

2. More than 25% 46.9

3. More than 50% 15.6

4. Will Inc with introduction of 15.6

GST

Total 100

Interpretation

From the above graph 21.9% of respondents currently spent time on GST is less than 25%
and 15.6% of respondents will increase with introduction of GST and 46.9% of respondents
are more than 25% spent time on GST.

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 S.no Particulars Percentage

1. Yes 68.8

2. No 31.3

Total 100

Interpretation

From the above table 68.8% of respondents have a policy or plan to cope with the
introduction of GST and 31.3% have not. But with the Introduction of GST large number of
enterprises effects too much.

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 S.no Particulars Percentage

1. Multiple State registrations 41.9

2. Centralized registration 58.1

Total 100

Interpretation

From the above table 58.1% of respondents agrees with the statement of GST regime
Centralized registration with one return for state and one for central and 41.9% are agrees
with the Multiple state registrations.

35
 S.no Particulars Percentage

1. Easier 43.8

2. Difficult 43.8

3. Don’t Know 12.5

Total 100

Interpretation

From the above table 43.8% of respondents are easier and Difficult to comply with the GST
and 12.5% don’t know how to comply with the GST.

36
 S.no Particulars Percentage

1. To bring uniformity in the 25

country

2. To increase government 25
revenue

3. To replace all the indirect 3.1

tax

4. All of the above 46.9

Total 100

Interpretation

From the above table most of the respondents agrees with the all the above points (46.9%),
25% of respondents agrees with both statement that is to bring uniformity in the country and
to increase government revenue.

37
 S.No Particular Percentage

1. Strongly Agree 21.9

2. Agree 43.8

3. Neutral 15.6

4. Disagree 18.8

Total 100

Interpretation

From the above table it can observed that 21.9% of the respondent are strongly agree with the
impact of GST in customer purchasing power, 43.8% of the respondent are agree with the
statement and 15.6% are neutral and 18.8% are disagree with the statement.

38
 S.No Particular Percentage

1. Strongly Agree 28.1

2. Agree 40.6

3. Neutral 9.4

4. Disagree 12.5

5. Strongly Disagree 9.4

Total 100

Interpretation

From the above table it can observed that 28.1% of the respondent are strongly agree with the
GST is affecting small business very badly, 40.6% of the respondent are agree with the
statement and 9.4% are neutral and 12.5% are disagree with the statement and 9.4% Strongly
disagree with the statement.

39
 S.No Particular Percentage

1. Strongly Agree 34.4

2. Agree 40.6

3. Neutral 12.5

4. Disagree 9.4

5. Strongly Disagree 3.1

Total 100

Interpretation

From the above table it can observed that 34.4% of the respondent are strongly agree with the
statement that says GST will increase the tax collection of the Government, 40.6% of the
respondent are agree with the statement and 12.5% are neutral and 9.4% are disagree with the
statement and 3.1% Strongly disagree with the statement.

40
 S.No Particular Percentage

1. Strongly Agree 25

2. Agree 40.6

3. Neutral 25

4. Disagree 9.4

Total 100

Interpretation

From the above table it can observed that 25% of the respondent are strongly agree with the
statement that says GST is beneficial in Long Term, 40.6% of the respondent are agree with
the statement and 25% are neutral and 9.4% are disagree with the statement.

41
 S.No Particular Percentage

1. Strongly Agree 18.8

2. Agree 53.1

3. Neutral 12.5

4. Disagree 6.2

5. Strongly Disagree 9.4

Total 100

Interpretation

From the above table it can observed that 18.8% of the respondent are strongly agree with the
statement that says GST has increased the Tax burden on Businessmen, 53.1% of the
respondent are agree with the statement and 12.5% are neutral and 6.2% of the respondent are
disagree with the statement and 9.4% are strongly disagree with the statement.

42
 S.No Particular Percentage

1. Strongly Agree 43.8

2. Agree 21.9

3. Neutral 15.6

4. Disagree 9.4

5. Strongly Disagree 9.4

Total 100

Interpretation

From the above table it can observed that 43.8% of the respondent are strongly agree with the
statement that says GST has increased various legal formalities, 21.9% of the respondent are
agree with the statement and 15.6% are neutral and 9.4% of the respondent are disagree with
the statement and 9.4% are strongly disagree with the statement.

43
44
 CONCLUSION

It can be concluded from the above discussion that GST will provide relief to producers and
consumers by providing wide and comprehensive coverage of input tax credit set-off, service
tax set off and subsuming the several taxes. Efficient formulation of GST will lead to resource
and revenue gain for both Centre and States majorly through widening of tax base and
improvement in tax compliance. It can be further concluded that GST have a positive impact
on various sectors and industry.
The efficiency in tax administration will be improved, indirect tax revenue will be increased
considerably due to inclusion of more goods and services, and at last the cost of compliance
will be reduced for the dealers.
The implementation of GST will be in favor of free flow of trade and commerce throughout the
country. This single most important tax reform initiative by the Government of India since
independence provides a significant fillip to the investment and growth of our country’s
economy. To get the desired result, it should be assured that the benefit of input credit is
ultimately enjoyed by final consumers. Although implementation of GST requires concentrated
efforts of all stake holders namely, Central and State Government, trade and industry. GST
effect the indirect taxation systems and help reduce the burden on tax payer. GST help to reduce
the burden of record make and file maintain. Because GST cover 10-12 Tax. GST reduce the
price of various goods and increase the sale. After the implementation of GST indirect taxation.

Systems will remove and it easy to all tax payer to pay the tax to government. Efficient
formulation of GST will lead to resource and revenue gain for both Centre and States majorly
through widening of tax base and improvement in tax compliance. It can be further concluded
that GST have a positive impact on various sectors and industry. Although implementation of
GST requires concentrated efforts of all stake holders namely, Central and State Government,
trade and industry.

45
 Findings

Since the implementation of GST, opinions of the group members that I have
surveyed have been collected and the results can be generalized in a broad view
of the public opinion.
 58% have agreed the GST implementation has led to higher prices of
Goods and Services.
 76% have agreed that GST has affected the demand for the
Product/services.
 41% have agreed the GST has brought more uniformity and disciplined
collection of tax.
 72% have agreed GST will bring more revenue to the government.

46
 Managerial Implication

 It provide proper training to the employees, tax officers, professionals so that they
can manage the GST data effectively and efficiently it reduce the errors and also
increase the productivity and time saving.

 More and better data is required more frequently on a real time basis.

 Doubts related to GST should be address by the public and the department work
more keenly on other departments and they ensure a good implementation.
 The efficiency in tax administration will be improved, indirect tax revenue will be
increased considerably due to inclusion of more goods and services, and at last the cost
of compliance will be reduced for the dealers.

47
 Suggestions

 Special focus on awareness of all officers, professionals and assesses should be given
on GST.

 Provide proper training to the employees, tax officers, professionals how to manage
the GST Data efficiently and effectively.

 Since the public are very clear about GST, any disputes on GST introduction should
be protectively addressed by way of speedy redress.

 The relevant authorities especially the customers department must work closely
with other departments like information, Inland Revenue and other enforcement
authority ensure good implementation.

48
 Limitations of the Study

 Increased Compliance costs due to new software.

 Now, Companies have to employ tax professionals to be GST-complaint.
 The study was conducted in a short period of time and a detailed study was
not possible.

49
 REFERENCES

 http://www.pepsico.com
 http://www.google.com
 http://pepsizone.yahoo.com
 https://varunpepsi.com/overview/
 www.wikipedia.com
 http://ggdsd.ac.in/wp-content/uploads/2017/04/Journal_July_dec_2016.pdf#page=13
 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3098357
 http://www.indianjournaloffinance.co.in/index.php/IJF/article/view/121377
 file:///C:/Users/Gbu%20User/Downloads/1036-4950-1-PB.pdf
 http://www.questjournals.org/jrbm/papers/vol7-issue1/I07015860.pdf
 https://www.pwc.in/tax-and-regulatory-services/indirect-tax/gst.html

MAGAZINES

Time Education Magazine

Times of India
Business India

50
 QUESTIONNAIRE

Que: 1 Do you think transition to GST Regime was?

□ Smoother
□ Difficult
□ Very difficult

Que: 2 Do you think implementing GST will cause higher price of goods & services?
□ Yes
□ No

Que: 4 Do you feel that the introduction of GST in India has affected the demand for the
Product/services?

□ Positively
□ Negatively
□ No impact
Que: 5 The statement GST encourage individuals to save part of their income.
□ Strongly Agree
□ Agree
□ Neutral
□ Disagree
□ Strongly Disagree.

Que: 6 what are the key GST compliance issues being faced by you? Please select the key Issues
and state the order (Strongly Agree, Agree, Neutral, Dis agree and Strongly Dis agreed.)

C Cost of Compliance
b. Issues with Goods and Services Tax Network Portal
c. Cumbersome Procedures and Documentation
d. Lack of IT Infrastructure
e. Lack of trained manpower in the company
f. Any other issue (please state)

Que: 7 Do you use the services of external consultants for GST?

□ Yes
□ No
□ Not Applicable

51
Que: 8 If yes what is the nature of services desired – Advisory or compliance i.e. special advice
or routine work? Which would you rate as more dependent on the external consultants?

□ Advisory (including special advice)

□ Compliance (routine)
□ Both
□ Not Applicable

Que: 9 How much time do you currently spend on service tax compliances? Do you think this
will increase or reduce in the long term with the introduction of GST?

□ Less than 25%

□ More than 25%
□ More than 50%
□ Will increase with introduction of GST
□ Will decrease with introduction of GST

Que: 10 Do you think GST will be easier to comply with or difficult?

□ Easier
□ Difficult
□ Don’t know

Que: 11 Do you think under GST regime Centralized registration with one return for state and
one for central will work or do you envisage multiple state registrations and compliances
under the proposed GST regime?

□ Multiple State registrations

□ Centralized registration
Que: 12 Does your business have a policy/plan in place specifically to cope with the proposed
GST?
□ Yes
□ No
Que:-13 which of the following is the main motive of the government behind the introduction of
the Goods and Services Tax

□ To bring tax uniformity in the country

□ To increase government revenue
□ To replace all the indirect tax
□ All of the above

52
Ques:-14 “GST has increased the various legal formalities. '' The response are divided into five
categories – Strongly Agree, Agree, Neutral, Dis agree and Strongly Dis agreed.
□ Strongly Agree
□ Agree
□ Neutral
□ Disagree
□ Strongly Disagree.

Que: 15 GST has increased the Tax burden on Common Man.

□ Strongly Agree
□ Agree
□ Neutral
□ Disagree
□ Strongly Disagree.

Que: 16 GST has increased the Tax burden on Businessman.

□ Strongly Agree
□ Agree
□ Neutral
□ Disagree
□ Strongly Disagree.

Que: 17 GST is beneficial in Long Term. The description of following data are given below
as:
□ Strongly Agree
□ Agree
□ Neutral
□ Disagree
□ Strongly Disagree.

Que: 18 GST will increase the Tax Collection of Government. The following information are
collected from this statement are given below:
□ Strongly Agree
□ Agree
□ Neutral
□ Disagree
□ Strongly Disagree.

53
Que: 19 GST is affecting small business very badly. The following responses are given below
as:
□ Strongly Agree
□ Agree
□ Neutral
□ Disagree
□ Strongly Disagree.

Que: 20 GST is impacts Customer Purchasing Power in Effectively. The description are given
as below:
□ Strongly Agree
□ Agree
□ Neutral
□ Disagree
□ Strongly Disagree.

Que: 21 GST will cause an increase in the cost of living. The following statement description
given as below:
□ Strongly Agree
□ Agree
□ Neutral
□ Disagree
□ Strongly Disagree.

54