Summer Training Report
Topic of Research / Summer training Project
STUDY OF GST COUNCIL
Submitted in partial fulfillment of the requirements for Maters in Business
Administration/BBA/B.Com for session 2019-2022/2020-2022 of
Baddi University of Emerging Sciences and Technology
Submitted To:
Submitted By:
Name of Guide: Mr.Anish Sir
Name of Student: Subhash
Designation : Assistant Professor
Roll No : 19UBC025
School of Management Studies
Baddi University of Emerging Sciences and Technology
Makhnumajra, Baddi (Himachal Pradesh)
DECLARATION
I hereby declare that I have completed my six weeks summer training at Altop health care
,Baddi,Himachal Pradesh from to (15.07.2021 to 20.08.2021) under the guidance of Mr.
AKHLIESH YADAV (HR). I declare that I have worked with full dedication during these
six weeks of training and my learning outcomes fulfill the requirements of training for the
award of degree of B.COM Baddi University of Emerging Sciences & Technology,
Makhnumajra , Baddi
Name: Subhash Kumar Yadav
BUPIN : 19UBC025
PLACE : BADDI UNIVERSITY OF EMERGING SCIENCES & TECHNOLOGY
MAKHNUMAJRA , BADDI, DISTT. SOLAN (HP)
ACKNOWLEDGEMENT
Industrial project training is an essential part of any Bachelor Of Commerce program and for that
purpose I had joined Pharma Company name ALTOP HEALTHCARE ( Baddi).
I take the opportunity to express my gratefulness to all of them, those who helped me to achieve
this challenging project in ALTOP HEALTHCARE , (Baddi).
It is my duty to acknowledge my thanks in golden words to my Tranning teacher “Mr.AKHLIESH
YADAV who helped me at my pain of research work. He is always considerate to me and my studies.
I am also very thankful to all other Finance team members for their support and guidance
during their busy schedule on the ground, of which I have developed a field of corporate knowledge,
A special “Thank You” is given to all the Staff, Student Trainees and the Contract people of “ALTOP
HEALTHCARE
(Baddi)” for their positive supportI would like to acknowledge with gratitude of
respect, towards my parents and friends, who has always support and moralize me
ABSTRACT
This project is based on the study of GST in ALTOP HEALTHCARE An insight view of the project
will encompass – what it is all about, what it aims to achieve, what is its purpose and scope, the
various methods used for collecting data and their sources, including literature survey done, further
specifying the limitations of our study and in the last, drawing inferences from the learning so far.
ALTOP HEALTHCARE , is a pharmaceuticals company. ALTOP engaged in selling manufactured
(Orals ,Capsules, Liquid and Tablets) . It also offers support services to existing clients through annual
maintenance contracts, network consulting and facilities management
CONTENTS
DESCRIPTION
CHAPTER – 1 INDUSTRY ANALYSIS
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INTODUCTION OF ALTOP HEALTHCARE
MANAGEMENT OF ALTOP HEALTHCARE
OBJECTIVES OF ALTOP HEALTHCARE
DECISION MAKING PROCESS
STRENGTH OF ALTOP HEALTHCARE
 SECTION OF FINANCE DEPARTMENT
CHAPTER – 2 INVOICE / BILLS MANAGEMENT
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Introduction of GST
Need of the GST
Objectives of the GST
Limitation of the GST
Effects of GST on Indian economy
CHAPTER – 3 CONCLUSION
CHAPTER – 1 INDUSTRY ANALYSIS
Industry Definition “The Indian pharmaceutical industry is a success story provide
employment for millions and ensuring that essential drugs at affordable prices are available
to the vast population of this sub-continent.” Richard Gerster The Indian Pharmaceutical
Industry today is in the front rank of India’s science-based industries with wide ranging
capabilities in the complex field of drug manufacture and technology. Facts about the Role
of Pharmaceutical Industry in Indian Gross Domestic Product (GDP):
Indian Pharmaceutical Industry ranks fourth in the world, pertaining to the volume of sales.
• The estimated worth of the Indian Pharmaceutical Industry is US$ 10 billion.
• The growth rate of the industry is about 20% per year.
• Almost most 70% of the domestic demand for bulk drugs is catered
by the Indian Pharma Industry.
• The Pharma Industry in India produces around 25% to 30% of the global Generic
drugs.
• The Indian Pharmaceutical Industry is one of the biggest producers of the
Active Pharmaceutical Ingredients (API) in the international arena.
• The Indian Pharma sector leads the science-based industries in the country.
• Around 40% of the total pharmaceutical produce is exported.
• 55% of the total exports constitute of formulations and the other 45% comprises
of bulk drugs.
• The Indian Pharma Industry includes small scaled, medium scaled, large
scaled players, which totals nearly 300 different companies.
• As per the present growth rate, the Indian Pharma Industry is expected
to be a US$ 20 billion industry by the year 2015.
• The Indian Pharmaceutical sector is also expected to be among the Top Ten
Pharma based markets in the world in the next ten years
Globalization
The country is committed to a free market economy and globalization. Above all, it
has a 70 million
middle class market, which is continuously growing. Consolidation: For the
first time in many years, the international pharmaceutical industry is finding
great opportunities in India. The process of consolidation, which has become a
generalized phenomenon in the world pharmaceutical industry, has started
taking place in India. THE GROWTH SCENARIO India US$ 3.1 billion
pharmaceutical industry is growing at the rate of 13 percent per year. It is one
of the largest and most advanced among the developing countries.
ALTOP HEALTHCARE Ltd was founded in the year 2002 and was a result strong
will and undisturbed perseverance AKHLIESH are now a part of the driving force
of the company. It is headquartered in BADDI ,India.
Establised in the year of 2002, Altop health care is located at Village-Juddi Kalan,TehsilBaddi, Dist- Solan (H. P), India.
This plant is equipped for the formulation of Liquid oral, dry syrup, Tablets and Capsules
beta lactum & non Beta lactum section. In Altop healthcare, all the Pharmaceutical
Manufacturing Activities are carried out as per Schedule –M of the Indian Drugs & Cosmetics
Act. The day to day licensing and regulatory activities are controlled by Drugs & Licensing
Authority, Drug Controller, Baddi (H.P).
Altop Healthcare is situated on the outskirts of Chandigardh , at Baddi (H.P) and
commissioned for commercial production from December-2011. It is located in a green belt
and clean area away from polluting industries. The surrounding atmosphere is free from
dust & smoke. The in-house utility facilities are operated & maintained by in-house
engineering / utility staff.
HEALTHCARE OBJECTIVES OF ALTOP
1. To be a leader in the Pharmaceutical industry.
2. To be a profitable company with a steady growth in earnings.
3. To set an example as a socially responsible company.
4. To diversify in health care products areas.
5. To strive for excellence and continuous improvement in all spheres.
6. To improve the quality of life of people by providing better services and quality
products.
VISION OF THE COMPANY
We at ALTOP HEALTHCARE believe that complete customer satisfaction is the key to
expand business everywhere. Our actions are driven by these core values: SERVICE,
INTEGRITY, and QUALITY & CUSTOMER SATISFACTION.
MISSION OF THE COMPANY
ALTOP HEALTHCARE is committed to manufacture high quality medicine and our
committed exceeds the industry standards. We are committed to develop effective, pure, safe
and affordable range of drugs.
Our Credential
ALTOP HEALTHCARE is a WHO-GMP Certified Manufacturing Unit as well as
manufacturing practices also include the certification of GLP, ISO 9001:2015 & ISO
22000:2005.
MANAGEMENT
Altop Health Care H.P (Baddi) operates pharmaceutical manufacturing under the control of a
Quality Management System as per guidelines stated in the Company Quality Policy &
Quality Manual. The purpose of the Quality Policy is to ensure compliance of Quality
systems and procedures so that the end product meets all the required specifications ensuring
the quality, purity, efficacy and safety of the products.
The Quality Assurance Department is independent from manufacturing & authorized to take
appropriate decisions on quality matters of Raw materials/ Packing materials/ finished
products or any other issues related to quality.
Strength
Altop health care key strength is manufacturing finished formulations for
multinationals in India. Over the last few years, it has expanded its horizons and
exports its products to emerging pharma- ceutical markets globally such etc. It is
now poised to venture into markets etc. altop with over 20 years of experience
of Manufacturing of Pharmaceutical Products. The company is specialized for
Contract Manufacturing and almost all the major companies get their products &
manufacturing. The plants are located at Baddi in India.
SECTION OF FINANCE DEPARTMENT
1.Accounting dept: This department is under the charge of an accountant is responsible
for keeping records of each and every transaction involving any actual or book transfer of
funds, i.e. of all items of income and expenditure. This department also prepares final
accounts and financial statements like Profit and Loss a/c. Balance sheet. Annual Reports
etc., at the end of the financial year after the accounts have been audited by the auditors of
the company.
2. Cost accounts dept : This department deals with all types of costing and various matters
concerning the financial problems in the area of manufacturing or production.
3. Audit dept: This department carries on audit of accounting and financial records, detects
the discrepancies in the same and prevents and corrects errors and malpractices. It
examines each and every expense and tries to direct the attention of the management
towards the unnecessary and unauthorised expenditure.
4. Financial planning & budgeting dept: The department is responsible for preparing plans
designed to procure funds and their optimum utilisation. These plans are presented in the
form of a budget. A budget is a tool of planning as well as an instrument of control. Actual
financial activities are controlled by this department by using the budget as the standard or
norm.
5. Cash department: The department, under the charge of treasurer, receives all cash funds
and makes all disbursements on behalf of the company. The treasurer also manages the
issues of shares and debentures, and public deposit etc
6 PAYRoll -This section mainly deals with the payment to employees
for their work. Rules for pay and allowance are prescribed by head
office from time to time. The eligibility for special type of allowance
such as special allowances, shift allowance etc. is determined by
personnel
department and intimations are sent to the finance department giving the details of
employees those who are eligible for such allowance.This section also maintains the data of
transfer and new recruitment of employees and adds it to master information. If a person is
transferred to another unit, the LPC (last pay certificate) is required to be added into master
information
CHAPTER – 2 Goods and Services Tax (GST)
2.1 Brief Overview on GST:
Goods and Services Tax (GST) is an indirect taxation in India merging most of the existing
indirect taxes into single system of taxation. It was introduced as The Constitution (One
Hundred and First Amendment) Act 2016, following the passage of Constitution 122nd
Amendment Bill. The GST is governed by GST Council and its Chairman is Union Finance
Minister of India, Mr. Arun Jaitley. GST is a comprehensive indirect tax on manufacture, sale
and consumption of goods and services throughout India (Except state of Jammu and
Kashmir), to replace taxes levied by the central and state governments.
2.1.1 Overview on GST in India
The Constitution (122nd Amendment) Bill, 2014, seeks to amend the Constitution of India to
facilitate the introduction of Goods and Service Act.
It is the Indirect Tax charged on local consumption and is borne by end consumers. It is
collected at each stage of the production and distribution chain by registered vendors, who
have to account for the tax on the value that they have added to goods and services. France
is the first country to introduce GST. Almost 160 countries have introduced GST in some
form.
While countries such as Singapore and New Zealand tax virtually everything at a single rate,
Indonesia has five positive rates, a zero rate and over 30categories of exemptions. The
authority to levy tax is derived from the Constitution of India which allocates the power to
levy various taxes between Centre and State.
2.1.2 Need for GST:
India’s recent progress towards economic growth stems from reforms undertaken after the
1991 fiscal crisis, which lifted India from decades of slow growth under Socialist rule and
offered an opportunity to improve living conditions in the immense, poor country.
At the same time, much had changed in India after the balance of payments crisis of 1991.
Indian policies became more positive towards promoting export and allowing foreign
capital to participate in the
process of India’s growth .
Globalisation and liberalisation have become the order of the day.
The interdependence of economies in their move for development compelled the
Governments of all the countries to follow the globalisation policies adopted by the major
economies of the world.
To survive and grow in this economic order, rational and competitive tax policies are being
adopted by every country.
India has also fallen in line with the requirement and has been initiating modifications in
indirect taxes.
The recent proposals of Goods and Services Tax (GST) are considered as path-breaking in the
economic restructuring in general and in the taxation area in particular.
As the revenue to the government is increasing its figures from indirect taxes year by year,
this change will further boost the economy in a positive way which is necessary for the
international competence and globalising the market and economy
OBJECTIVES OF GOODS AND SERVICE TAX 1. TO ELIMINATE THE CASCADING EFFECT OF INDIRECT TAXES ON SINGLE
TRANSACTION - The basic objective of GST is to remove cascading effect of the
taxes. Cascading effect of taxes mean levy of tax on tax. GST would be levied only
towards the net value added portion and not towards the entire portion of value as
the tax payer would enjoy input tax credit.
2. TO SUBSUME ALL THE INDIRECT TAXES AT THE CENTRE AND STATE LEVEL - Barring
few indirect taxes, all the major indirect taxes levied by central and state
governments have been subsumed into GST. Thus, the taxpayer and supplier need
not bother about paying multiple indirect taxes under different laws.
3. TO REDUCE THE TAX EVASION AND CORRUPTION - GST would help in curbing of tax
evasion and reduce corruption in tax department. In the system of GST, there would
be less chance to claim false input tax credit as it requires matching of invoices
between recipient and the suppliers. Input tax credit can be claimed only if the tax
has been deposited by the registered supplier to the Government. Each invoice wise
matching and verification would be made to ensure that taxes are properly paid to
the government.
4. TO INCREASE THE PRODUCTIVITY - GST would help in increasing the enterprise
productivity and efficiency. There was also levy of entry tax in few States on entry of goods
into states. In GST regime, entry tax has been subsumed. Number of checks on State
borders would also reduce due to removal of check posts. These factors would help in
increase of productivity.
5. TO BRING MORE PEOPLE UNDER THE TAX NET - GST helps in widening of the tax base
and bring large number of people into tax net. Now there is a single limit for turnover below
which registration would not be required. More tax payers would be covered under the tax
net which ultimately could result in increasing the tax base and tax revenue for the
government.
6. TO ACHIEVE THE POLICY OF ONE NATION ONE TAX - GST replaces multiple indirect taxes
which were existing in the previous regime. There is a single and neutral tax in most cases so
there would not be any differences in the tax rates between one state to another state. GST
law has achieved the policy of one nation one tax.
LIMITATIONS OF GOODS AND SERVICE TAX –
1. Additional Software Expense Most businesses use ERP or accounting software to manage their day-to-day operations.
These solutions were developed as per the traditional tax laws in the country. GST required
the businesses to switch to GST-compliant solutions or standalone GST software to keep up
with the new tax laws.
2. Online Tax Regime - GST is an online tax system. From GST registration to filing GST
returns, every aspect of this new tax regime is done online. While businesses are gradually
shifting to digital solutions, small businesses are still not very well-versed with such modern
technologies and solutions.
3. SMEs will have a higher tax burden - Smaller businesses, especially in the manufacturing
sector will face difficulties under GST. Earlier, only businesses whose turnover exceeded Rs
1.5 crore had to pay excise duty. But now any business whose turnover exceeds Rs 20 lakh
will have to pay GST.
4. Increase an operational costs - we have already established that GST is changing the way
how tax is paid, businesses will now have to employ tax professionals to be GST-complaint..
Effect of GST on Indian Economy :
1. Increased FDI - The flow of Foreign Direct Investments may increase once GST is
implemented as the present complicated/ multiple tax laws are one of the reasons
foreign Companies are wary of coming to India in addition to widespread corruption.
2. Growth in overall revenues - It is estimated that India could get revenue of $15
billion per annum by implementing the Goods and Services Tax as it would promote
exports, raise employment and boost growth.
3. Simplified tax laws - This reduces litigation and waste of time of the judiciary.
Present law appears to be much worse and an amalgam of the bad parts of VAT/ ST.
4. Increase in exports and employment - GST could also result in increased employment,
promotion of exports and consequently a significant boost to overall economic growth and
factors of production -land labor and capital.
CHAPTER – 3 CONCLUSION
India has many taxes in place like excise, sales tax, service tax, entertainment tax, VAT etc.
These taxes are divided at Central as well as state level. These bundle amount of taxes are
difficult to manage and sometimes causes inconvenience to businesses and customers. GST
aims to solve it with single indirect taxation system. GST has been the buzzword in the
country for the last few days and finally the bill has passed, leading to the realization of
“One country, one tax”, at least on papers for now. Goods and Services Tax Network (GSTN)
is a nonprofit organization formed to create a platform for all the concerned parties i.e.
stakeholders, government, taxpayers to collaborate on a single portal. The portal will be
accessible to the central government which will track down every transaction on its end
while the taxpayers will be having a vast service to return file their taxes and maintain the
details. The IT network will be developed by private firms which are being in tie up with the
central government and will be having stakes accordingly. While overall the industry is
looking forward to the introduction of GST, more will be clear only when the actual tax rate
under the new Bill has been decided. The exclusion of petrol and diesel from the GST
umbrella may be another concern as otherwise prices would have come down. However, as
states have correctly pointed out, petroleum related products (and alcohol) as the biggest
source of revenue for state governments, maybe this is for the better.