GST Project
GST Project
GST Project
KLE SOCIETY’S
CHIKODI
A PROJECT REPORT ON
AT
Submitted by
REG NO.:-B1912407
[1]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
KLE SOCIETY’S
CERTIFICATE
This is to certify that Miss. CHINNU ASHOK SHAH Reg.no. B1912407 student of BBA 3rd year and
she has successfully completed her project report on “A study on impact of GST on financial
statements related to textile industry with special reference to Satish Silk Mills, Bhiwandi” under
our guidance and supervision during the year 2021-2022 submitted to RANI CHANNAMMA
UNIVERSITY, BELAGAVI in partial fulfilment of BBA course.
[2]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
I Miss. Chinnu Ashok Shah the undersigned, hereby declare that the project
report entitled “A study on impact of GST on financial statements related to Textile industry with
special reference to Satish Silk Mills, Bhiwandi” has been prepared by me under the supervision and
guidance of Prof. Roopali Kale, Co-ordinator of CBAC, Chikodi. The report is submitted to Rani
Channamma University, Belagavi in partial fulfilment of the university rules and regulations for the
award of the Degree of Bachelors of Business Administration.
I further declare that this report is based on the original research report undertaken by me and has
not formed on basis for the award of any other Degree/ Diploma of RCU or any other University.
Date:-
(Reg.No B1912407)
[3]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
[email protected] +919860414406
This is to certify that, Miss. Chinnu Ashok Shah, student of Basavprabhu Kore College of
Business Administrations, Chikodi, has successfully completed her project work titled, “A study on
impact of GST on financial statements related to Textile industry with special reference to Satish
Silk Mills, Bhiwandi”.
During the period of work from 24-04-2021 to 25-05-2021, we found her to be sincere, honest,
dedicated and hardworking.
(Owner)
Ramesh Mutha
[4]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
ACKNOWLEDGEMENT
No work is said to be completed without thanking the people who have helped me in perceiving
any job. So this acknowledgement is for those who have played their role in completion of my project
entitled “A study on impact of GST on financial statements related to Textile industry with special
reference to Satish Silk Mills, Bhiwandi”
First and foremost I would like to express my sincere gratitude to Dr. Amar Pashupatimath,
Principle Basavprabhu Kore College of Business Administration, for his constant support and
encouragement in carrying out this project.
At the very outset I would like to thanks Mr. Ramesh Mutha my company guide who constantly guided
and inspired me in completion of this project. During this project I experienced the real environment,
market situation, etc. that are very much needed in this competitive environment.
My sincere thanks to my internal guide Prof. Roopali Kale for his valuable guidance in the
completion of this project successfully.
I owe a debt of gratitude to my parents, the silent guides in my life without their never ending
support, nothing would have been possible.
Dedicate my sincere thanks to all the teaching and non-teaching staff member of CBAC, for their
help.
I also extend my thanks to all other who have directly helped me in completion of this Project
Report.
[5]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
CHAPTER SCHEME
The project is entitled as “A study on impact of GST on financial statements related to Textile industry
with special reference to Satish Silk Mills, Bhiwandi”
Chapter 1: This chapter includes introduction of the organisation, current situation of the organisation,
Issue/problem of the report, objectives of the report, Methodology/procedure adopted for
writing the report, project framework, Data and Information, tools and techniques of
project, report analysis.
Chapter 2: This chapter includes Research design, Data collection, Instruments for the Data collection
and Method for Data collection.
[6]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
[7]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
LIST OF TABLES
[8]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
LIST OF GRAPHS
S.no Title Page no.
10 Transition to GST 30
12 Effect on sales 32
[9]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
Executive Summary
Textile industry contributes more than 10% of the India’s total export. Textile industry has both organised
and unorganised sector. To encourage the organised sector, reduce the production cost and to reduce the
burden on textile industry the Prime Minister of India Mr. Narendra Modi along with finance minister and
other ministers launched GST (Goods and Service Tax) in Indian. Textile industry had a great impact
after the launch of GST. It had both positive and negative impact.
GST stands for Goods and Service Tax. It is applied on sale of goods and service. The main aim of this
was to remove other indirect taxes throughout the India like value added tax. GST is applicable on Textile
industry on the raw material purchased by the manufacturer and the value that has been added to make the
product.
So to understand the impact of GST the researcher want to study the problem under the title “Impact of
GST on textile Industries with special reference to Satish Silk Mills”. The following are the objective of
the study like, to compare the financial position of industry before and after the GST, impact of pricing of
textile, impact on customer after pricing with GST.
To fulfil above objectives the researcher has conducted a survey where she has tried to understand the
impact of GST on financial Statement of Textile industry. Questionnaires were made to know the impact
of GST for purchase and sale of raw material and finished goods.
[10]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
TABLE OF CONTENT
[11]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
Sl.no Title Page no.
Introduction
[Satish Silk Mills]
1.1 Textile industry
1.2 GST (Goods and Service Tax)
1.2.1 Tax before implementing GST
1.2.2 Types of GST
1.3 Background of the study
1.3.1 GST
1.3.2 VAT
1.3.3 Difference between GST & VAT
1.4 Introduction of the Organisation
1 1-10
1.4.1 Satish Silk Mills
1.4.2 Organisational structure
1.4.3 Product/service profile
1.4.4 Future Plans
1.5 Current situation of the organisation
1.6 Objective of report
1.7 Methodology/procedure adopted for
writing the report
1.8 Tools and Techniques used for project
1.9 Data and information
Methodology
2.1 Research Design
2.2 Data collection
2.2.1 Primary Data
2.2.2 Secondary Data
2 12-13
2.3 Instrument for Data collection
2.4 Methods for Data Collection
2.5 Sample Design
2.6 Data analysis tools
2.7 Limitations of study
Analysis & Findings
[12]
3 BK BBA COLLEGE,
[KLE SOCIETY’S 3.1 Analysis
CHIKODI] 15-39
3.2 Findings
[Satish Silk Mills]
CHAPTER 01
[13]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
CHAPTER 01
INTRODUCTION
Textile industry is one of the oldest industry in Indian Economy. It is the only industry after agriculture
which generates employment for both skilled and unskilled labour. It is the second largest employment
generating industry in India after agriculture. Textile industry offer around 35 million employment
opportunities in India. Indian textile industry contributes around 15% of India’s export. There are around
3400 textile mills in India, among which 80% are from private sector and the remaining are government.
India ranks 2nd in production of textile in world, expected around US $ 250 billion .6 per cent more than
the same period last year. India is the first Jute production country. India is second in Global textile
production and second in production of silk and cotton.
The archaeological surveys and studies have indicated that the people of Harrapan civilization were
familiar with weaving and the spinning of cotton for as long as four thousand years ago. Reference to
weaving and spinning materials is found in the Vedic Literature. There was textile trade in India during
the early centuries. Cotton fragments from Gujarat have been found in tombs at Fustat in Egypt,
indicating the existence of export of Indian textiles to Egypt during the medieval era.
Large quantities of north Indian silks were traded through the Silk Road in China to the western countries.
The Indian silks were often bartered for spices. During the late 17th and 18th century there were large
exports of Indian cotton to the western countries to meet the need of the European industries
during industrial revolution, apart from the domestic requirement at the Indian Ordnance Factories
Up until the 18th century, Mughal Empire was the most important centre of manufacturing in trade. Up
until 1750, India produced about 25% of the world's industrial output. The largest manufacturing industry
in Mughal Empire (16th to 18th centuries) was textile manufacturing,
particularly cotton textile manufacturing, which included the production of piece goods, calicos,
and muslins, available unbleached and in a variety of colours. The cotton textile industry was responsible
for a large part of the empire's international trade. Bengal had a 25% share of the global textile trade in
the early 18th century. Bengal cotton textiles were the most important manufactured goods in world trade
in the 18th century, consumed across the world from the Americas to Japan. The most important centre of
cotton production was the Bengal Subah province, particularly around its capital city of Dhaka. As Karl
Marx noted in 1853, the textile industry was a major component of economic income in the pre-colonial
[1]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
Indian economy, writing that "The hand-loom and the spinning-wheel, producing their regular myriads of
spinners and weavers, were the pivots of the structure of that society".
Bengal accounted for more than 50% of textiles and around 80% of silks imported by the Dutch from
Asia and marketed it to the world, Bengali silk and cotton textiles were exported in large quantities to
Europe, Asia, and Japan, and Bengali muslin textiles from Dhaka were sold in Central Asia, where they
were known as "daka" textiles. Indian textiles dominated the Indian Ocean trade for centuries, were sold
in the Atlantic Ocean trade, and had a 38% share of the West African trade in the early 18th century,
while Bengal calicos were major force in Europe, and Bengal textiles accounted for 30% of total British
trade with Southern Europe in the early 18th century.
In early modern Europe, there was significant demand for textiles from the Mughal Empire,
including cotton textiles and silk products. European fashion, for example, became increasingly
dependent on textiles and silks imported from The Mughal Empire. In the late 17th and early 18th
centuries, The Mughal Empire accounted for 95% of British imports from Asia, conducted through the
auspices of the East India Company (EIC). After the abolition of slavery in British Empire, manufactures
in Britain started to look for alternative sources of cheap cotton, eventually settling on the East India
Company's possession in India. The EIC convinced many farmers to switch from subsistence farming to
producing and exporting huge amounts of cotton, after a long period of government protectionism
imposed over the British textile industry. Eventually, through the technical and marketing advances made
possible by colonisation, the traditional method of artisan textile production declined significantly, and
replaced with large scale factory production.
[2]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
GST stands for Goods and Service Tax. It is an indirect tax which was introduced to replace other indirect
taxes such as value added tax, service tax, purchase tax, excise duty and many more. It is the only one tax
applicable all over India.
On July 1st 2017, the Goods and Services Tax implemented in India. But, the process of implementing
the new tax regime commenced a long time ago. In 2000, Atal Bihari Vajpayee, then Prime Minister of
India, set up a committee to draft the GST law. In 2004, a task force concluded that the new tax structure
should put in place to enhance the tax regime at the time.
In 2006, Finance Minister proposed the introduction of GST from 1st April 2010 and in 2011 the
Constitution Amendment Bill passed to enable the introduction of the GST law. In 2012, the Standing
Committee started discussions about GST, and tabled its report on GST a year later. In 2014, the new
Finance Minister at the time, Arun Jaitley, reintroduced the GST bill in Parliament and passed the bill in
Lok Sabha in 2015. Yet, the implementation of the law delayed as it was not passed in Rajya Sabha.
GST went live in 2016, and the amended model GST law passed in both the house. The President of India
also gave assent. In 2017 the passing of 4 supplementary GST Bills in Lok Sabha as well as the approval
of the same by the Cabinet. Rajya Sabha then passed 4 supplementary GST Bills and the new tax regime
implemented on 1st July 2017.
The Centre and the State used to collect tax separately. Depending on the state, the tax regimes were
different.
Even though import tax was levied on one individual, the burden was levied on another individual. In
the cases of direct tax, the taxpayer must pay the tax.
Prior to the introduction of GST, direct and indirect taxes were present in India.
[3]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
1. Central Goods and Services Tax: CGST is charged on the intra state supply of products and services.
2. State Goods and Services Tax: SGST, like CGST, is charged on the sale of products or services
within a state.
3. Integrated Goods and Services Tax: IGST is charged on inter-state transactions of products and
services.
4. Union Territory Goods and Services Tax: UTGST is levied on the supply of products and services in
any of the Union Territories in the country, viz. Andaman and Nicobar Islands, Daman and Diu, Dadra
and Nagar Haveli, Lakshadweep, and Chandigarh. UTGST is levied along with CGST.
[4]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
GST stands for Goods and Service Tax. It is an indirect tax which was introduced to replace other indirect
taxes such as value added tax, service tax, purchase tax, excise duty and many more. It is the only one tax
applicable all over India.
VAT stands for Value Added Tax. It is a consumption tax on goods and services levied at each stage of
supply chain from initial production to the point of sale.
Point of Difference VAT (Value Added Tax) GST (Goods and Service Tax)
[5]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
Satish Silk Mills is a textile manufacturing organisation, which manufactures school uniforms, catering
uniforms and suiting & shirting fabrics. It was started in the year 2008. It is a HUF (Hindu Undivided
Family) firm. Its owner is Mr. Ramesh Mutha and Mr. Satish Mutha. Its starting investment consisted of
24 machines, which cost up to ₹1crore, land of 9000 sqft which cost around ₹1Lakh and miscellaneous
of 45000, which totalled up to ₹2crore 45 thousand.
Partners
Ramesh Satish
Mutha Mutha
8 Employees
[6]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
The future plan of Satish Silk Mills is to expand their manufacturing unit and distribute their products to
some more other places.
[7]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
Satish Silk Mills is a leading manufacturer and distributor of checks textile in Maharashtra. Their starting
investment was 2 Crore 45 thousand and currently their turnover is around 10 Crore per year.
To study the impact of GST on production and selling cost of textile industry.
To study the impact of GST on firms financial statement(comparative analysis before and after
GST)
Impact of GST on customers.
Both primary and secondary data were used to write the report.
Primary Data:-
Primary data is a type of data that is collected by researchers directly from main sources through
interviews, surveys, experiments, etc. Primary data are usually collected from the source—where the data
originally originates from and are regarded as the best kind of data in research.
Secondary Data:-
Secondary data is the data that has already been collected through primary sources and made readily
available for researchers to use for their own research. It is a type of data that has already been collected
in the past.
[8]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
Satish Silk Mills had maintained the computerized books of accounts i.e. Bank book, Cash book, General
Ledger, Journal register, Stock register, Sales and Purchase registers and accounts are on “Mercantile”
system of Accounting.
Assets: - ₹ 17,799,155.23
[9]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
CHAPTER 02
[10]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
CHAPTER - 2
METHODOLOGY
Bhiwandi is a city in Thane district in konkan division of Maharashtra, India. Bhiwandi is a commercial
city and a major trade centre. It has the population of 874,032. In Bhiwandi there are more than 100
textile manufacturing industries. I am doing my project under the guidance of one of the Textile
manufacturing industry of Bhiwandi, Satish Silk Mills, Bhiwandi.
The data will be collected through various primary and secondary data.
Data collection methods like survey, questionnaires, interview and focus group were obtained.
The target population for the study are the textile manufacturing firms and customers of Bhiwandi area.
The researcher has taken the sample size of 5 that is, 5 manufacturing firm.
Simple random sampling is used to identify the respondents to facilitate data collection in the short
duration of time available. The data will also be collected through observation and interview method.
That is by observing various textile manufacturing firms and customers.
[11]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
For conducting survey, questionnaire method will be used. 10 manufacturing firms and 10 customers will
be surveyed. The questionnaire includes 14 questions which includes demographic questions and the
questions relating to pricing of textiles before and after the GST.
Data analysis tools like MS-Excel, Charts, Google sheets, Graphs will be used.
The study is conducted for the textile manufacturing firm which is located in Bhiwandi, which
may not be applicable to all the textile industries. Hence, the results cannot be generalised.
[12]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
CHAPTER 03
[13]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
CHAPTER 03
3.1 ANALYSIS: -
Following are the Trading Account of Satish Silk Mill before and after the introduction of GST
53,136,287.00 53,136,287.00
[14]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
51,105,242.00 51,105,242.00
[15]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
1,99,00,566.48 1,99,00,566.48
[16]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
[17]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
60,000,000
50,000,000
40,000,000
2017-18
30,000,000 2018-19
2021-2022
20,000,000
10,000,000
0
Purchases Sales
Graph no.1 Changes in purchase and sales before and after GST
Source: Table no.1 and Table no.2
Conclusion: - The above graph shows that there was a less difference in purchases and sales before and
after launching of the GST. In the year 2017-18 when the GST was launched, the purchases of the firm
were less as compared in the year 2018-19 and even sales of the firm was reduced. The reason for this
drastic change was change in price of the raw material that changed the production cost and led to
increase in the price of Finished Goods.
[18]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
600,000
500,000
400,000
2017-18
300,000 2018-19
2021-2022
200,000
100,000
0
Transport charges Electricity Charges Factory Charges
Graph no.2 Changes in Transport, Electricity and Factory Charges before and after GST
Source: Table no.1 and Table no.2
Conclusion:- The above graph shows that the Electricity charge was increased due to the introduction of
GST, whereas the transport charge was reduced which was due to E-way bill and factory charges was
highly decreased.
[19]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000 2017-18
2018-19
2,000,000 2021-2022
1,500,000
1,000,000
500,000
0
Gross Profit
Conclusion: - As shown in the Graph no. 1, the sales of the firm after the GST was reduced, that indicates
that the Gross Profit was the firm was also decreased.
[20]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
Following are the Profit and Loss account of the Satish Silk Mills before and after the introduction of
GST
Table no.4 Profit and Loss account for the year 2017-2018
[21]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
Table no.5 Profit and Loss account for the year 2018-2019
[22]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
39,31,971.93 39,31,971.93
Table no.6 Profit and Loss account for the year 2018-2019
[23]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
60,000
50,000
40,000
30,000 2017-18
2018-19
2021-2022
20,000
10,000
0
Office Expenses Petrol Expenses Telephone Travelling
Expenses Expenses
[24]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
1,000,000
900,000
800,000
700,000
600,000
2017-18
500,000 2018-19
2021-2022
400,000
300,000
200,000
100,000
0
Salary
[25]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
Chart Title
860,000
840,000
820,000
800,000
780,000 2017-18
2018-19
760,000 2021-2022
740,000
720,000
700,000
680,000
660,000
Net Profit
[26]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
Following are the Balance Sheet of the Satish Silk Mills before and after the introduction of GST
19,27,349.00
Capital Account 22,05,099.50 Fixed Assets
19,33,379.00
Unsecured Loan 58,59,426.00 Closing Stock
86,19,903.00
Sundry Creditors 58,03,111.00 Sundry debtors
77,439.00
Vat receivables
12,95,665.50
Cash at Syndicate Bank
13,901.00
Cash in Hand
1,38,67,636.50 1,38,67,636.50
[27]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
5,54,458.62
Cash at Syndicate Bank
21,860.00
Cash in Hand
1,27,58,084.08 1,27,58,084.08
[28]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
45,52,714.23 93,08,162.44
Capital Account Fixed Assets
68,31,824.00 12,89,177.00
Secured loans Closing Stock
41,16,226.00 43,04,372.00
Unsecured loans Sundry debtors
22,98,391.00 23,89,805.41
Sundry Creditors GST Account
308419.65
Canara Bank
88,403.73
Central bank of India
1,27,58,084.08 1,27,58,084.08
[29]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
10,000,000
9308162.44
9,000,000
8,000,000
7,000,000
6,000,000
2017-18
5,000,000
2018-19
2021-22
4,000,000
3,000,000
1988144.19
1927349
2,000,000
1,000,000
0
Assets
Conclusion: - The above graph shows that the assets of the firm were increased after the implementation
of the GST, after the few years the assets of the company were highly increased. Assets includes fixed
assets such as machinery etc.
[30]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
3,000,000
2,500,000 2,389,805.41
2,000,000
2017-18
1,500,000 2018-19
2021-22
1,000,000
500,000 439,101.27
77439
67,960.00
0.00 0
0
Vat receivables GST Account
Graph no. 8 Changes and Addition of GST account in the Balance Sheet
Source: - Table no.7, table no.8 and table no.9
Conclusion: - The above graph shows that in the year of 2017-18 and 2018-19, the VAT return was
deceased because of implementation of GST replacing it with VAT. And in the year 2021-22 there was
no Vat return as the GST was fully applicable throughout the country in the year 2021-22.
The above graph states that there was 0 GST return in the year 2017-18, and in the next year i.e. 2018-19
GST return was applicable and by the year of 2021-22 GST return was highly increased.
[31]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
Manufacturer survey:-
Q. 1: Do you feel that the introduction of GST in India has affected the demand for
the product/service?
No impact %
10%
Positively
Positively Negatively
50%
No impact
Negatively
40%
Inference: - The above graph shows that 10% of the manufacturer say that GST had no impact on their
manufacturing of textile, 40% of manufacturer say that GST had very bad impact on their manufacturing
and 50% of the manufacturer had positive impact on their manufacturing.
Conclusion: - It shows that 50% of the textile manufacturing industries had Positive impact due to
introduction of GST.
[32]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
[33]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
%
Smoother
20%
Very difficult
30%
Smoother
Difficult
Very difficult
Difficult
50%
Inference: - The above graph shows that 20% of the manufacturers had a smooth transition to GST, 50%
of the manufacturer had a difficult transition to GST and 30% of the manufacturer had a very difficult
transition to GST.
Conclusion: - It shows that it was 50% difficult for the textile manufacturing industry for transition to
GST regime.
[34]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
Q. 3: What were the problems faced by you at the beginning of launch of GST?
a) Cost of Compliance
e) Lack of IT infrastructure
Lack of IT
infrastruc- cost of Compliance
ture 10%
Issues with
20% GSt net-
work portal
10%
cost of Compliance
Issues with GSt network portal
Procedure and documentation
Lack of trained manpower in the
company
Procedure Lack of IT infrastructure
and doc-
umenta-
tion
20%
Lack of
trained
manpower
in the
company
40%
Inference: - The above graph shows that 10% of the manufacturing industries had the problem of cost
compliance, 10% of the manufacturers had issues with the GST network portal, 20% of the manufacturers
had problem in procedures and documentation, 40% of the manufacturers had lack of trained manpower
in the company and 20% of the manufacturers had lack of IT infrastructure.
Conclusion: - It shows that 40% of the manufacturing industries had problem with Lack of trained
manpower in the company.
[35]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
Same
22%
High High
44%
Low
Same
Low
33%
Inference: - The above graph shows the effect of GST on sales of the company, 45%
of the company had increase in sales, 33% of the company had decrease in sales and
22% of the company had same effect in sale due to introduction of sales.
Conclusion: - It shows that about 45% of the company had increase in the sales due to
introduction of the GST.
[36]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
Indirect Tax
30%
Indirect Tax
GST
GST
70%
Inference: - The above graph shows that about 70% of the company says that GST is
Conclusion: - Its shows that GST is the good taxation system for the company.
[37]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
3.2 FINDINGS
The graph no.01 shows that there was a less difference in purchases and sales
before and after launching of the GST. In the year 2017-18 when the GST was
launched, the purchases of the firm were less as compared in the year 2018-19 and
even sales of the firm was reduced. The reason for this drastic change was change in
price of the raw material that changed the production cost and led to increase in the
The graph no.02 shows that the Electricity charge was increased due to the
introduction of GST, whereas the transport charge was reduced which was due to E-
As shown in the Graph no. 1, the sales of the firm after the GST was reduced, that
indicates that the Gross Profit was the firm was also decreased.
The graph no.4 shows that expenses of the firm were reduced. Office expenses were
highly reduced, telephone expenses were also reduced, travelling expenses were
highly reduced due to E-way bill but petrol expenses were increased.
The graph no.5 shows the changes in salary due to GST. the graph states that due to
GST the production cost has been increased or the Profit of the firm has been
reduced due to which the salary of the employees of the firm is also been reduced.
The graph no.6 shows that the profit of the firm was decreased due to GST.
The graph no.7 shows that the assets of the firm were increased after the
implementation of the GST, after the few years the assets of the company were
The graph no.8 shows that in the year of 2017-18 and 2018-19, the Vat return was
deceased because of implementation of GST replacing it with VAT. And in the year
2021-22 there was no Vat return as the GST was fully applicable throughout the
country in the year 2021-22.The above graph states that there was 0 GST return in
the year 2017-18, and in the next year i.e. 2018-19 GST return was applicable and
The graph no.9 shows that 10% of the manufacturer say that GST had no impact on
their manufacturing of textile, 40% of manufacturer say that GST had very bad
impact on their manufacturing and 50% of the manufacturer had positive impact on
their manufacturing.
The graph no.10 shows that 20% of the manufacturers had a smooth transition to
GST, 50% of the manufacturer had a difficult transition to GST and 30% of the
- The graph no.11 shows that 10% of the manufacturing industries had the problem
of cost compliance, 10% of the manufacturers had issues with the GST network
40% of the manufacturers had lack of trained manpower in the company and 20% of
The graph no.12 shows the effect of GST on sales of the company, 45% of the
company had increase in sales, 33% of the company had decrease in sales and 22%
[39]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
The graph no.13 shows that about 70% of the company says that GST is the good
It shows that 50% of the textile manufacturing industries had Positive impact due to
introduction of GST.
It shows that it was 50% difficult for the textile manufacturing industry for
It shows that 40% of the manufacturing industries had problem with Lack of trained
It shows that about 45% of the company had increase in the sales due to
Its shows that GST is the good taxation system for the company.
[40]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
CHAPTER 04
[41]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
CHAPTER 04
CONCLUSION
By analysing the financial statements of the Satish Silk Mills it was found that the purchase cost of the
raw material was reduced compared to previous year, and the sales of the company was reduced
compared to previous year but it was thrice the higher than the purchase of the company. It was also
observed that transport charges of the company was reduced, the reason for this was the introduction of
E-way bill with GST which made decrease in transport charges and easy procedure and documentation.
It was also observed that the Gross profit of the company was increased compared to previous year Gross
profit, but the net profit of the company was reduced.
It was observed that assets of the company were increased, assets include machinery. New technology
machinery were installed in the company for effective and efficient manufacturing of finished goods.
One of the most positive things of GST was that compared to VAT taxation system, GST return was more
and which made increase in assets of the company.
Through questionnaire, it was observed that most of the companies faced and are even facing some of the
problems like, lack of IT infrastructure, lack of trained manpower, but it was observed that 50% of the
companies had positive impact after the introduction of the GST, and it was also observed that most of the
companies said that GST is the best taxation system as compared to VAT and other indirect tax.
We can conclude that introduction of GST had a positive effect on the company, but government should
take initiative to train the employer about the GST, as there is lack of IT infrastructure and lack of trained
manpower.
[42]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
CHAPTER 05
[43]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
CHAPTER 05
SUGGESTION/RECOMMENDATION
1) Looking at the problems faced by the company due to introduction of GST, it is suggested that
2) Systematic initiative should be taken to train the citizens about the GST.
[44]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
CHAPTER 06
[45]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
CHAPTER 06
LIMITATIONS OF THE STUDY
The study is conducted for the textile manufacturing firm which is located in
Bhiwandi, which may not be applicable to all the textile industries. Hence, the results
cannot be generalised.
[46]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
6.1 BIBLIOGRAPHY:-
https://satish-silk-mills-clothes-and-fabric-manufacturer.business.site/
https://www.google.com
https://en.wikipedia.org/wiki/Main_Page
https://www.ibef.org/industry/textiles
https://en.wikipedia.org/wiki/Textile_industry_in_India
https://gstcouncil.gov.in/sites/default/files/gst-knowledge/Short-ppt.pdf
https://www.questionpro.com/blog/research-design/
http://www.a2ztaxcorp.com/wp-content/uploads/2018/06/PHD-
Chambers-GST-Survey-2018.pdf
https://www.investopedia.com/terms/v/valueaddedtax.asp
https://www.formpl.us/blog/secondary-data
[47]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
6.3 QUESTIONNAIRE:-
I’m a student of KLE society’s Basavprabhu Kore college of Business Administration, Chikodi. I’m
doing a Project report on “A study on impact of GST on financial statements of the Textile Industry with
special reference to Satish Silk Mills”, so I request you to help me in this project to get the result of the
report by answering the following questions
[48]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
1) Name:_____________________________________________________________
2) Organisation Name:-________________________________________________
3) Address:-
___________________________________________________________________
4) Yearly Turnover:-
____________________________________________________
7) Do you feel that the introduction of GST in India has affected the demand for
the product/service?
9) What were the problems faced by you at the beginning of launch of GST?
f) Cost of Compliance
j) Lack of IT infrastructure
[49]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]
[Satish Silk Mills]
__________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
Thank you
[50]
[KLE SOCIETY’S BK BBA COLLEGE, CHIKODI]