International Journal of Mechanical Engineering and Technology (IJMET) Volume 10, Issue 01, January 2019, pp. 1565–1570, Article ID: IJMET_10_01_159 Available online at http://www.iaeme.com/ijmet/issues.asp?JType=IJMET&VType=10&IType=1 ISSN Print: 0976-6340 and ISSN Online: 0976-6359 © IAEME Publication Scopus Indexed GST IMPLICATION ON SALES OF AUTOMOBILE INDUSTRY WITH REFERENCE TO TATA MOTORS Charumathi S M.Com IV Semester, Department of Management and Commerce, Amrita School of Arts and Sciences Mysuru, Amrita Vishwa Vidyapeetham, India Dr. Rampilla Mahesh Assistant Professor, Department of Management and Commerce, Amrita School of Arts and Sciences Mysuru, Amrita Vishwa Vidyapeetham, India Dr. Ranjith Kumar S Assistant Professor, Department of Management and Commerce, Amrita School of Arts and Sciences Mysuru, Amrita Vishwa Vidyapeetham, India ABSTRACT In this present generation, individuals are highly sophisticated in their life standard as it is directly determined by their individuals and family income. Pool of earnings in a family take them to next level life style. Copy and comparison are the two important C’s which influence the individuals to lead their life in comfort t zone. In the last two decades people are totally isolating to prefer public transport. Heavy traffic penetrates the individuals to frustrate, in turn it leads to attract to buy their own vehicles. A competitive corporate culture encourages them by launching new modern two and four wheeler with different amenities at competitive price. Financial institutions are also supporting them to buy vehicles at easiest instalments. At last, these proportionately increase more automobile products. These automobile industries directly contribute the GDP to our nation. The recent GST also encourages the buying habit of automobile products. These positive tax regime definitely develop the automobile sector to the reasonable extent. This research paper has made an attempt to undergo the tax implications of automobile products with reference to TATA motors. The study conducted based on the reliable facts from the company site and financial reports for the period for 4 years from 2014 to 2018. Observation method also applied to perceive the users, retailers and Dealers preference about the GST implement about automobile sector. Keywords: GST, TATA Motors and Automobile Industry http://www.iaeme.com/IJMET/index.asp 1565 editor@iaeme.com Charumathi S, Dr. Rampilla Mahesh, Dr. Ranjith Kumar S Cite this Article: Charumathi S, Dr. Rampilla Mahesh, Dr. Ranjith Kumar S, GST Implication on Sales of Automobile Industry with Reference to Tata Motors, International Journal of Mechanical Engineering and Technology 10(1), 2019, pp. 1565–1570. http://www.iaeme.com/IJMET/issues.asp?JType=IJMET&VType=10&IType=1 1. INTRODUCTION GST was first implemented on July 1, 2016.Subsequently, There has been adequate effect on the performance of a company. Forecast of Turnover determine the growth of an organisation. These recent GST have faced hollow on company’s sale of the passenger’s vehicles, at the starting 9% was lower compared to year of 2016 and reason for this is decline in starting stages was uncertain prevailing on GST system but the company believes that decline of volume is temporary in future as it is a direct benefit of GST also there it will be recovered soon. They also mention that implement of GST will be promoted for the consumer but present condition for Tata motors is in the year of 2018 domestic sale has grown up to 54% .In June 2018, increased in volume of sales when paralleled with last year. 2 STATEMENT OF THE PROBLEM The tax is aptness for the revenue authorities to have the tax collected through the agencies of the manufactures or merchants who are used as “unofficial tax collectors”. There is no direct assembly between tax payers and revenue authority and taxes so collected maybe termed as indirect tax EG: GST. The most applied and suitable way to differentiate between direct and indirect tax which is in conformism with generally accepted view of direct and indirect tax that is levied immediately on conception of individuals may be called indirect taxes. Present study focus the GST impact on automobile spare parts with references to the total turnover of TATA MOTORS with aim to analysis the above mentioned research problem , the following of hypotheses and objective have been formulated. 3. PROFILE OF THE COMPANY Tata engineering and locomotive or Tata motors ltd is an Indian multinational manufacturing company was started in the year 1868. It is the public company and conglomerate industry. . The founder of the company is Jamsetji Tata. The services are provided globally. Tata motors headquarters is positioned in Mumbai. Tata motors contain passenger cars, trucks, Vans, busses, sporting car, construction equipment’s and military vehicles. The Tata motors plants are located in the following places: Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad and Pune in India as well as in Argentina, South Africa, great Britan and Thailand. Tata motors are registered on Bombay stock exchange where it is constituent of BSE Sensex index. The company is ranked 226th on the treasure world-wide 500 list of the world’s biggest corporations as of 2016. On 17Th January 2017, Natarajan chandrasekaran was appointed as chairman of the company Tata group. In the year 2018 the revenue of Tata motors is US $100.4 billion and the total assets in the year 2018 is US $135 billion. The number of employees is around 700000 and the website for the company is www.tata.com. 4. REVIEW OF LITERATURE Akshara Mahesh and Karthika K(2018) in her article “ Impact of GST on Automobile Industry in India” This study entitles that decrease in rate of tax in luxury car it may rise in sales but not in case of small cars. it might have positive influence after certain period of time http://www.iaeme.com/IJMET/index.asp 1566 editor@iaeme.com GST Implication on Sales of Automobile Industry with Reference to Tata Motors government have invigorated financial budget there is more chances in future for growth in automobile industry Neelavathi.K has expressed in her study “Impact of GST on Automobile Industry” The accomplishment of GST changes from the origin public to the ingesting it could improve the GDP progress that could push attention for vehicle crosswise over classes .This will effect the duty dwindling will outflow that may reduce in general cost of auto creating as all valuations on input paid are counter stable with the yield obligation of GST Tarunika on (June 6 2017) in his study “IMPACT OF GST ON REAL ESTATE AND AUTOMOBILES SECTOR “The article delivers a inclusive opinion on the impact of GST on the real estate and automobile sector It helps accepted easily it helps in Sympathetic of GST would help policy makers gain superior public acceptance and consequently easier to travel from the old taxation system. In the future, this study helps to comprehend effect of GST and other sectors to the economy Dhyan Vishnu prajwal N (November 11 2017) on his study “Impact of GST Implementation on Share Prices - A Study on Automobile Industry” This study tells about the automobile sector in India has facilitated from the introduction of the GST. The tax rates have abridged and the shares have been traded at an higher rate after the application of GST with increased returns. Thus GST for automobile industry is a win-win condition for both the Shareholders and the manufacturers. Milandeep kour (November 2 2016) in his study of “A STUDY ON IMPACT OF GST AFTER ITS IMPLEMENTATION” In this study there will be one tax system i.e. GST, that will reduce obedience present load. GST will face many challenges after its implementation and will result to give many benefits. In general through this study we accomplish that GST play a active role in the growth and development of our country Dr Krishna banana (January of1 2018) in his study “ AN ANALYSIS OF GST IMPACT ON MOTORBIKE INDUSTRY IN INDIA” The Government of India has envisioned to effect of GST to the Collecting segment in India. The goal of this exploration is the effect of GST on Automobile and bike parts in India. 'Make in India' cause of the Government of India is furthermore going to appeal in more distant risk into Indian bike share making further development early stages in the coming years. Roshan Roy (may 2 2017) in his study “Project report on implications of Goods and Service Tax (GST) on Automobile Industry of India” Automobile manufacturing is Seeing forward to outline of GST. There are fairly a few apprehensions in GST model which need to be lectured. Limitations and conditions on earnestness to tax credits on assets used for business is also a foremost area of concern, and the credit mechanism should be more liberal. Overall GST will be benediction for automobile industry. 5. OBJECTIVE OF THE STUDY To compare Pre and Post implementing GST impact on the sale of TATA motors. 6. HYPOTHESIS OF THE STUDY H0: There is no positive significant impact of GST on sale of TATA motors. H1: there is a negative significant impact of GST on sale of TATA Motors. 7. METHODOLOGY The study is collected based on secondary data from the published reports like Company website, journals and related literatures from the relevant study. Secondary data collected has been the fundamental source of gaining knowledge related to the topic which enabled as to approach the research problem. http://www.iaeme.com/IJMET/index.asp 1567 editor@iaeme.com Charumathi S, Dr. Rampilla Mahesh, Dr. Ranjith Kumar S 8. STATISTICAL TOOLS USED Trend percentage analysis. T test 9. ANALYSIS OF THE STUDY Table 1 ONE SAMPLE STASTICS MEAN STD.DEVIATION N SALES OF COMMERICAL VEHICEL SALES OF PASSANGER VEHICLE SALES OF EXPORT STD.ERROR MEAN 5 32185.20 9115.757 4076.691 5 13330.20 4394.797 1965.413 5 4554.20 633.197 283.174 Table 2 T ONE SAMPLE TEST t-test for Equality of mean DF SIG(2MEAN 95% CONFIDENCE TAILED) DIFFERE INTERVAL OF THE DIFFERENCE LOWER UPPER NCE 4 .478 3185.600 -8133.11 1450431 Sales of .781 commercial vehicle Sale of 1.186 4 passenger vehicle Sales of .898 4 export [source: Secondary data] .301 2330.200 -3126.66 7787.06 .420 254.200 -532.02 1040.42 The study was conducted on the basis of “one-tailed” t- test used by considering number of units sold for commercial vehicle, sales of passenger vehicle and sales of export with respect of TATA MOTORS during the study period 2016-2018. Here, the objective of the study is proven through hypothesis testing Based on data, conducted a hypothesis testing (with 0.05 significance level) Sales of commercial vehicle: Hence calculated value is .478 less than table value 0.781 therefore selected hypothesis is accepted so, there is positive significant impact of GST on sale of TATA motors. Sales of passenger vehicle: Hence calculated value is .301 less than table value 1.186 therefore selected hypothesis is accepted so, there is positive significant impact of GST on sale of TATA motors. Sales of export: Hence calculated value is .420 less than table value 0.898 therefore selected hypothesis is accepted so, there is positive significant impact of GST on sale of TATA motors. http://www.iaeme.com/IJMET/index.asp 1568 editor@iaeme.com GST Implication on Sales of Automobile Industry with Reference to Tata Motors Table 3 TREND PERCENTAGE ITEM Total sales Sales on commercial vehicle Sales on passenger vehicle Export sales 2014 2015 2016 QUANTITY IN FIGURES 41734 39972 40944 27347 25736 24998 2017 2018 2014-2015 2015-2016 2016-2017 2017-2018 TREND PERCENTAGE -4.22 2.42 52.48 19.56 -5.8 2.8 6.1 25.8 54627 40447 64520 46169 12040 8069 1082 14180 18429 -32.9 34.18 30.96 6.6 3958 4557 5119 6044 5250 15 12.3 26 35 Total sales: in the year 2014 the total sales of the company is around 41734 but in the year 2015 it decreases to 39972 and from 2016 -2018 the total sales of the company gradually increases when GST is implemented. Sales of commercial vehicle: before implementing GST there is an average sale in commercial vehicle but after implementing GST the sales of commercial vehicle increases and in the year 2018 it has put up to 25.8%. Sales on passenger vehicle: after implementing GST sales of passenger vehicle also gradually increases. Export sales: After implementing GST, in the year of 2016 the exports sales is 5119 but in the end of 2018 the sales has been put down to 35%. 10. FINDINGS After implementing GST the overall sales of TATA MOTORS gradually increases After implementing GST sales of passenger vehicle also increases. Implementation of GST has positively supported the consumers of TATA MOTORS. Before implementing GST there is an average sale in commercial vehicle but after implementing GST the sales of commercial vehicle increases and in the year 2018 it has put up to 25.8%. 12. CONCLUSIONS At the outset, the research highlighted the impact of the New tax regime recently introduced in the name of GST which directly influence the core industries particularly Automobile sector. There is a huge continuous demand in automobile products. High rate competency between service providers in the Automobile products directly is being influenced the users of the product. GST positively support the organisations in low proportion, but there is a drastic drastic growth in Automobile industry. But, automobile products are inevitable in the life of individuals and organisations’ routine life. Due to continuous demand of the products, the sector has not been drastically affected. In spite of this value argument, there is a threat from world market due to LPG policy. After a while, there would be proportion negative effect impact will increase. Therefore, the state authorities want to take serious policy decisions to map with the possible GST reduction in the existing rate to support the companies. Such, radical changes in the system will boost the sector as well as performers like TATA motors to face the tax implications in the growth of company. http://www.iaeme.com/IJMET/index.asp 1569 editor@iaeme.com Charumathi S, Dr. Rampilla Mahesh, Dr. Ranjith Kumar S REFERENCES [1] Akshara Mahesh and Karthika K(2018) Impact of GST on Automobile Industry in India IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668 PP 01-03 [2] K.Neelavathi and Rachana Sharma (2018) Impact of GST on Automobile Industry IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 23197668 PP 59-63 [3] Tarunika jain agrawal & c.a. 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