CHAPTER:- 1

INTRODUCTION

About Karvy Data Management Services Limited-:

“Success is a journey, not a destination.” If we look for examples to prove this quote then we can
find many but there is none like that of KARVY. Back in the year 1981, five people created
history by establishing karvy and company which is today known as karvy, the largest financial
service provider of India.

Success sutras of Karvy:

The success story of karvy is driven by 8 success sutras adopted by it namely trust, integrity,
dedication, commitment, enterprises, hard work and team play, learning and innovation, empathy
and humility. These are the values that bind success with karvy.

Vision of Karvy:

To achieve & sustain market leadership, Karvy shall aim for complete customer satisfaction, by
combining its human and technological resources, to provide world class quality services. In the
process Karvy shall strive to meet and exceed customer’s satisfaction and set industry standards.

Mission statement:

“Our mission is to be a leading and preferred service provider to our customers, and we aim to
achieve this leadership position by building an innovative, enterprising, and technology driven
organization which will set highest standards of service and business ethics.”
Company overview:

Karvy was established as karvy and company by five chartered accountants during the year
1979-80, and then its work was confined to audit and taxation only. Later on it diversified into
financial and accounting services during the year 1981-82 with a capital of Rs. 150000. It
achieved its first milestone after its first investment in technology. Karvy became a known name
during the year 1985-86 when it forayed into capital market as registrar.

EVOLUTION OF KARVY

It is well said that success is a journey not a destination and we can see it being proved by karvy.
Under this section we will see that how this “karvy and company” of 1980 became “karvy” of
2014. Karvy blossomed with the setting up of its first branch at Mumbai during the year 1987-
88. The turning point came in the year 1989 when it decided to enter into one of the not only
emerging rather potential field too i.e.; stock broking. It added the feather of stock broking into
its cap. At the same time it become the member of Hyderabad Stock Exchange through
association firm karvy securities ltd and then karvy never looked back…….it went on adding
services one after another, it entered into retail stock broking in the year 1990. Karvy investor
services centers were set up in the year 1992. Karvy which already enjoyed a wide network
through its investor services centers, entered into financial product distribution services in the
year 1993. One year more and karvy was now dealing into mutual fund services too in the year
1994 but it didn’t stopped there, it stepped into corporate finance and investment banking in the
year 1995.

Karvy’s strategy has always been being the first entrant in the market. Karvy again hit the
limelight by becoming the first registrar in the country to be awarded ISO 9002 in the year 1997.
Then it stepped into the other most happening sectors I.e.; IT enables services by establishing its
own BPO unit’s and at a gap of just one year it look the path of e-Business through its website
www.karvy.com. Then it entered into insurance services in the year 2001 with the launch of its
retail arm “karvy” the fin polis: your personal finance advisor”. Then in the year 2002 it
launched its PCG (Private Client Group) which looks after its High Net worth Individuals and
maintain their portfolio and provides them with other financial services. In the year 2003, it
commenced secondary debt and WDM trading.

It was a decade which saw many Indian companies going global…so why the largest financial
services provider of India should lag behind? Hence, karvy launched “karvy global services
limited” after entering into a joint venture with the Computershare, Australia in the year 2004.
The year 2004 also saw karvy entering into commodities marketing though karvy comrade.

Year 2005 saw karvy established a separate branch for its insurance services under the head
“karvy insurance broking ltd” and in the same year, after being impressed with the rapid growth
of karvy stock broking limited, PCG group of Hong Kong acquired 25% stake at KSBL. In the
year 2006, karvy entered into one of the hottest sector of present time i.e. real estate through
Karvy realty& services (India) ltd. Hence, we can see now karvy being established as the largest
financial service provider of the country.

About Goods and Services Tax (GST)-:

Goods and Services Tax (GST) is an indirect tax applicable throughout India which replaced

.
multiple cascading taxes levied by the central and state governments It was introduced as The

.
Constitution (One Hundred and First Amendment) Act 2017 following the passage of

.
Constitution 122nd Amendment Bill The GST is governed by a GST Council and its Chairman

.
is the Finance Minister of India Under GST, goods and services are taxed at the following rates,

. .
0%, 5%, 12% and 18% There is a special rate of 0 25% on rough precious and semi-precious

stones and 3% on gold. In addition a cases of 15% or other rates on top of 28% GST applies on

few items like aerated drinks, luxury cars and tobacco products. Touted by the government to be
India's biggest tax reform in 70 years of independence, the Goods and Services Tax (GST) was
finally launched on the midnight of 30 June 2017, though the process of forming the legislation

.
took 17 years (since 2000 when it was first proposed) The launch was marked by a historic
midnight (30 June - 1 July 2017) session of both the houses of parliament convened at the
Central Hall of the Parliament, but which was immediately boycotted by the opposition by

.
staging a walk out to show their disapproval of the same The introduction of Goods and

Services Tax (GST) would be a very significant step in the field of indirect tax reforms in India .
By amalgamating a large number of Central and State taxes into a single tax, it would mitigate

cascading or double taxation in a major way and pave the way for a common national market .
From the consumer point of view, the biggest advantage would be in terms of a reduction in the

.
overall tax burden on goods, which is currently estimated to be around 25%-30% Introduction

of GST would also make Indian products competitive in the domestic and international markets .
.
Studies show that this would have a boosting impact on economic growth Last but not the least,

this tax, because of its transparent and self-policing character, would be easier to administer .
The idea of moving towards the GST was first mooted by the then Union Finance Minister in his

.
Budget for 2007-08 Initially, it was proposed that GST would be introduced from 1stApril,

.
2010 The Empowered Committee of State Finance Ministers (EC) which had formulated the

design of State VAT was requested to come up with a roadmap and structure for the GST Joint .
Working Groups of officials having representatives of the States as well as the Centre were set
up to examine various aspects of the GST and draw up reports specifically on exemptions and

.
thresholds, taxation of services and taxation of inter-State supplies Based on discussions within
and between it and the Central Government, the EC released its First Discussion Paper (FDP) on

.
GST in November, 2009 This spells out the features of the proposed GST and has formed the

basis for discussion between the Centre and the States sofar .
Currently, fiscal powers between the Centre and the States are clearly demarcated in the

.
Constitution with almost no overlap between the respective domains The Centre has the powers
to levy tax on the manufacture of goods (except alcoholic liquor for human consumption, opium,

. .
narcotics etc ) while the States have the powers to levy tax on sale of goods In case of inter-
State sales, the Centre has the power to levy a tax (the Central Sales Tax) but, the tax is collected

.
and retained entirely by the originating States As for services, it is the Centre alone that is
 .
empowered to levy service tax Since the States are not empowered to levy any tax on the sale or
purchase of goods in the course of their importation into or exportation from India, the Centre
levies and collects this tax as additional duties of customs, which is in addition to the Basic

.
Customs Duty This additional duty of customs (commonly known as CVD and SAD) counter

balances excise duties, sales tax, State VAT and other taxes levied on the like domestic product .
Introduction of GST would require amendments in the Constitution so as to concurrently

.
empower the Centre and the States to levy and collect the GST Goods and Services Tax
Network (GSTN) has been set up by the Government as a private company under erstwhile

.
Section 25 of the Companies Act, 1956 GSTN would provide three front end services, namely

.
registration, payment and return to taxpayers Besides providing these services to the taxpayers,

GSTN would be developing back-end IT modules for 25 States who have opted for the same .
.
The migration of existing taxpayers has already started from November, 2016 The Revenue
departments of both Centre and States are pursuing the presently registered taxpayers to
complete the necessary formalities on the IT system operated by Goods and Services Tax

.
Network (GSTN) for successful migration About 60 percent of existing registrants have already

.
migrated to the GST systems GSTN has already appointed M/s Infosys as Managed Service

Provider (MSP) at a total project cost of around Rs 1380 crores for a period of five years .
.
Members of the Congress boycotted the GST launch altogether They were joined by members
of the Trinomial Congress, Communist Parties of India and the DMK, who reportedly found
virtually no difference between the existing taxation system, and therefore claimed that the
government was trying to merely rebrand the current taxation system but made it worse for
common people by increasing existing rates on common items and reducing rates on luxury

.
items Many critics pointed out that the GST would increase costs of daily goods and affect
many Indians adversely, especially the middle, lower middle and poorer classes[5] GST was
initially proposed to replace a slew of indirect taxes with a unified tax and was therefore set to

.
dramatically reshape the country's 2 trillion dollar economy However, it has been met with
sharp criticism from various fronts due to the increased costs and troubles that it will cause to

.
common citizens The rate of GST in India is between double to four times that levied in other

countries like Singapore .

 CHAPTER:-2
ORGANIZATION STRUCTURE

NATIONAL LEVEL ORGANIZATION CHART

CM & MD
(Hyderabad)

GM
(Marketing) (Finance) (HRM)
 Zonal Manager

Regional Manager

. .
Branch Mgr Branch Mgr Branch Mgr .

.
Accountant Sr Executives

Executives

BRANCH LEVEL ORGANIZATION CHART

Branch Manager

.
Sr Executive Executives Executive (Investment) (SB - 4) (IT)

Marketing Clerk
 Executives-3

Executive
(Demat) Accountant

CHAPTER 3

KARVY SERVICES – AN OVERVIEW

.
1 Stock broking

.
2 Demat services

.
3 Investment product distribution

.
4 Investment advisory services

.
5 Corporate finance & Merchant banking

.
6 Insurance

.
7 Mutual fund services

.
8 IT enabled services

.
9 Registrars & Transfer agents
 .
10 Loans

.
11 Karvy GSP

 Stock Broking:

.
KARVY is working as Capital Market Intermediaries Stockbrokers are regulated by SEBI

.
[Stock-brokers and Sub-brokers] Regulations, 1992 The stockbroker is a member of the stock

.
exchange Stockbrokers are the intermediaries who are allowed to trade in securities on the

.
exchange of which they are members They buy and sell on their own behalf as well as on behalf

of their clients .

.
Stockbrokers expand their business by engaging sub-broker Sub-brokers mean “any person not
being a member of a stock exchange who acts on behalf of a stock broker as an agent or
otherwise for assisting the investors in buying, selling or dealing in securities through such

stock-brokers ”.

 Demat Services

Karvy is a depository participant with the National Securities Depository Limited (NSDL) for

.
trading and settlement of dematerialized shares Depository Participants (DPs) are described as

.
an agent of the depository They are intermediaries between the depository and the investors .
The relationship between the DPs and the depository is governed by an agreement made between

the two under Depositories Act .

A DP can offer depository-related services only after obtaining a certificate of registration from

SEBI . Since Karvy is also in the broking business, investors who use Karvy’s depository
.
services get a dual benefit They can use Karvy’s brokerage Services to execute transactions and

Karvy’s depository services to settle them .

 Investment Products Distribution:

Company is also concern with the distribution of investment products like :-

.
(a) Fixed Deposit: KARVY is dealer of 34 fixed deposits of various types which includes fixed
deposits of Public Sector, Non-Banking Finance Companies, Housing Finance Companies and

Manufacturing Companies .

.
(b) Bonds: Karvy is dealer of following bonds

1. RBI Saving Bonds

2. NHB
3. REC
(c) . IPO: Company is also provides services related to Initial Public Offer of company.
Company provides stationary at the time of IPO as well as provides information to investors

regarding IPO and solves their queries .

 Investment Advisory Services:

This division provides portfolio management services to high net-worth individuals and

.
corporate The expertise of Karvy in research and stock broking gives it the right perspective to

.
provide investment advisory services Company provides advisory services to its clients .

Financial goal of each individual investor varies according to his dream, ambition and family
size and future financial planning for the children & old age pension for self and wife so does the

.
pathway to achieve it Karvy apply the principles of Financial Planning as both science & art, it
understands the time horizon, risk bearing capacity and investment goals of investors keeping in

.
mind their psyche and financial needs Based upon this Karvy helps individual investors to plan
their entire life up to retirement, Taxes, Insurance needs and other important personal financial

.
goals It designs portfolio for investor to invest their saving in various financial products like

.
shares, bonds, debentures, mutual funds, fixed deposits, insurance etc ,

Company design portfolio by considering following factors.

 Investor’s requirement of getting money back,

  Investor’s willingness to take risk,

 Investor’s tax planning etc .

 Corporate finance & Merchant banking:

.
Corporate finance is the financial activity of corporation It deals with the firm's operations with

regard to investing and financing . It concerned with how firms raise capital and the

.
consequences of alternative methods of raising capital Firm’s capital can be raised by raising
loans, issuing shares, and acquiring or merging with other businesses by public or private

companies .

Merchant banking is a financial intermediation that matches entities that need capital and those

. .
that have capital Hence they facilitate the flow of capital in the market Karvy enjoys SEBI

.
category (I) authorization for Merchant Banking Karvy offers the full spectrum of Merchant
Banking Services, beginning from identifying the best time for an issue to final stage of

marketing it, to harvest unparalleled success .

As a merchant banker Karvy offer following services:

 Issue management
 Instrument designing
 Pricing of the issue
 Registration process for the issue of shares
  Marketing efforts
 Final allotment to investors
 Listing details on stock exchanges
 Loan syndication
 Lease financing
 Corporate advisory services
 Underwriting
 Portfolio management

 Insurance:

.
Karvy is also dealer of many private life insurance companies At Jamnagar branch, company is

associated with dealing of following companies .

I. ICICI Prudential Life Insurance
II. HDFC Life Insurance
III. TATA AIG Life Insurance

 Mutual Fund Services:

Since its inception in 1982, Karvy has demonstrated a dedication coupled with dynamism that

.
has inspired trust from various segments – corporate, government bodies and individuals Karvy
has since been performing a pivotal role as the intermediary – the interface – between these

players .

With Mutual Funds emerging as a distinct asset class, Karvy has made a strategic choice to

.
leverage the power of latest technology to provide a cutting edge to its services Karvy, today,
service nearly 80% of the asset management companies (AMCs) across an extensive network of

. .
service centers with assets under service in excess of Rs 10, 000 crores Karvy's ability to mass
customize and offer a diverse range of products for a diverse range of customers has helped

.
mutual fund companies to uniquely position themselves in the market place These diverse range
of services cut across multiple delivery channels – service centers, web, mobile phones, call
centre – has brought home the benefits of technology to investors, distributors, and the mutual

funds .

Going forward, Karvy shall strive to create new products and services, which would address the

.
needs of the end customer Company’s single minded focus in delivering products for customers
has given it the distinguished position of being the preferred provider of financial services in the

country .

 Income Tax enabled services:

.
Karvy has been started this service since March, 2004 Karvy is work as TIN Facilitation Centre
it provides following IT enabled services:

.
a Distribution of PAN Card .
.
b Distribution of TAN Card .
.
c Services related to e-TDS .
 .
Karvy work as an intermediary between NSDL and IT payers Karvy provides various form for

.
different IT enabled services and guide people to fill that forms It also solves queries of the tax

.
payers It also distributes PAN and TAN card to the tax payers .

 Registrars & Transfer agents:

In 1985, Karvy entered the Registrar and Share Transfer Business to create a market niche in the

.
competitive field of financial services In 1994-95, it reached a milestone when it processed 104

.
Public Issues constituting 46 per cent market share Now in its second decade of existence,
Karvy is the leader in the industry: In an opinion poll conducted by an independent market
research agency - MARG, Karvy has been rated as India’s Most Admired
Registrar on various parameters: -

a. Overall Excellence .
b. Handling of Volumes
c. Timely Dispatch

d. Quality Management and Technological Up gradation .

A SEBI Category 1 Registrar, So far, Karvy has handled over 675 ISSUES as Registrars to
public issues processed over 52 million applications and is servicing over 16 million investors

from various locations spread over 205 clients .

  Loan:

.
Karvy has recently started this service at selected branches of metro cities This service has not

.
been started in Saurashtra-Koch region Karvy provides loans for following .

 Vehicle Loan
 Home Loan
 Personal Loan

 Karvy GSP:
Karvy as a GSP has all that it takes to serve its clients – Service , Technology and Experience

in handling both the corporates as well as large number of retailers .

CHAPTER 4
About KARVY GST Filing software
 Compliance Solutions

 One-time Registration with GST Portal

 Filing of the GST Returns
 Converting the Sale/Purchase registers in GST compliances format
 Bulk-upload of data
 Validate the data before filing (inbuilt data –check points)
 Filing of returns directly with GSTN Portal ensuring data security and data privacy
 Schedulers for batch upload

Smart Data Analytics

 Easy to use interface to give users quick access to data and information
 Attractive Dash-boards containing statistical, graphical analysis and much more
 Custom dash board for product/service wise analysis, location wise -analysis for multi-
state registration
 Timely status reports ensuring proper compliance tracking

Vendor Management

 Generate advance matching reports and notify mis-match of the data

 Effective vendor management is key to manage ITC credit in GST
 Monitoring vendor compliances , GST compliance rating and notifying the concerns, if
any
 Follow-up with tens of thousands of vendors for mis-match of data

Value added services (VAS)

 Integration of their Accounting Packages/ERP with GSP system

 Enhanced Data security as GSP developed apps will connect with the GST system via
secure GST system APIs
 Easy to use interface on desktops, laptops and mobiles
 Direct payment Gateway for GST payments for select banks

Data collection/Imports and Consolidation

 Pre-built data extractors for SAP & Oracle

 Collection of over 150 data transaction level fields

 . . . .
Data can be imported in other formats such as txt, csv, xls, xml to enable simple
integration with any system
 CHAPTER:- 5

Why Karvy Software Better The Others

GST within State and IGST:-
 CHAPTER:- 6

NOW KARVY GROUP CONSISTS OF 11 HIGHLY RENOWED

ENTITIES WHICH ARE AS FOLLOW:
 1. KARVY CONSULTANTS LIMITED:

.
The first securities registry to receive ISO 9002 certification in India Registered with SEBI as

.
Category I Registrar, is Number 1 Registrar in the country The award of being ‘Most Admire’
Registrar is one among many of the acknowledgement we receive for our customer friendly and

competent services .

2. KARVY STOCK BROKING LIMITED:

Karvy stock broking ltd . Consists of five units namely stock broking services, depository
participant, advisory services, distribution of financial products, advisory services and private

client groups .

3. KARVY INVESTOR SERVICES LIMITED:

It is registered with SEBI as a category 1 merchant banker . Its clientele includes leading
corporate, state government, foreign institutional investors, public and private sector companies

and banks, in India and global markets .

4. KARVY INSURANCE BROKING LIMITED:

.
Karvy insurance broking ltd is also a part of karvy stock broking ltd At karvy insurance broking
limited both life and non-life insurance products are provided to retail individuals, high net-

worth clients and corporate .

5. KARVY:

The company provides investment, advisory and brokerage services in India Commodities

.
Markets And most importantly, it offer a wide reach through our branch network of over225

branch located across 180 cities .

 6. KARVY GLOBAL SERVICES:

Karvy global is a leading business and knowledge process outsourcing Services Company

offering creative business solution to client globally . It operation in banking and financial
.
services, insurance, healthcare and pharmaceuticals, media, telecom and technology It has its
sales and business development office in New York, USA and the offshore global delivery centre

in Hyderabad, India .

7. Karvy Realty(India) limited:

Karvy Realty (India) Limited is engaged in the business of real estate and property services
offering:
  Buying/ selling/ renting of properties
 Identifying valuable investment opportunities in the real estate sector
 Facilitating financial support for real estate and investment in properties

 Real estate portfolio advisory service .

8. KARVY COMPUTERSHARE PRIVATE LIMITED:

Karvy Computershare private limited is a joint venture between Computershare, Australia and

.
karvy Consultants Limited, India in the registry management services industry Computershare,

Australia is the world’s largest and only global share registry providing . Financial market
.
services and technology to the global securities industry Karvy Corporate and Mutual Fund

. .
Share Registry and Investor Services business India’s No 1 Registrar and Transfer Agent and
rated as India’s “Most Admire Registrar” for its overall excellence in volume management,

quality process and technology driven services .

 9. KARVY DATA MANAGEMENT SERVICES LIMITED:

KDMSL is emerging as a leading service provider in the areas of E-governance processing,

insurance back office processing, record keeping, back office for BFSI clientele and is in pursuit
to establish credentials in the areas of Telecom processing, Data management requirements of

large corporate .

KDMSL is striving to achieve leadership position by tapping the Indian retail sector boom,

.
through a combination of our extensive branch network and proprietary IT backbone Needless
to say, KDMSL is run as an independent outfit with seasoned professionals on board, who have

decades of expertise in the industry .

KDMSL is a fully owned subsidiary of Karvy Stock Broking Limited (KSBL), incorporated in

April 2008 and is head quartered at Hyderabad .

 10.KARVY FORTUNE:

Karvy Now presents Karvy Fortune, a correlate opportunity from India’s foremost financial

.
services provider, karvy It offers complete Karvy’s spectrum of financial products Karvy .
fortune gives the opportunity to associate with “Karvy Family” as Franchisee, Remisser, E-

Franchisee or as an Independent Financial Advisors .

11. KARVY THE FINAPOLIS:

In its ambition to emerge as a complete financial advisor, KARVY has recently launched its

.
personal financial planning wing, KARVY Financial Planning It proposes to cater all advice to

its customers pertaining to personal finance .

With India emerging as a strong market, the investments avenues have also increased, to advices

.
our customers the right avenue according to their suitability Our vision is “to cater to the unique
needs and requirements of the mass affluent by providing complete financial solution and

thereby enabling them to transform their dreams into reality” .

CHAPTER:-7

SWOT ANALYSIS

 STRENGTH:-

1. Qualified and experienced work force .

2. Wide spread branches and brokers network .
3. Wide range of products and services .
4. Strong customer relationship .

 WEAKNESS:-

1. Not enough advertisement .

 2. The company turnover is dependent on market performance .
3. Lack of Loyal clients .

 OPPORTUNITY:-

1. Marketing at semi-urban areas .

2. Growing consumer awareness about equity market .
3. Positive outlook of people towards financial products .

 THREATS:-

1. Market uncertainty .
2. Reduced brokerage charges by new players .

GST Taxation scheme And Its Effects and Impacts

Taxes subsumed-:
A single GST replaced several existing taxes and levies which include: central excise duty,

.
services tax, additional customs duty, surcharges, state-level value added tax and Octroi Other
levies which were applicable on inter-state transportation of goods has also been done away with

in GST regime .
Levy-:

GST is levied on all transactions such as sale, transfer, purchase, barter, lease, or import of goods

.
and/or services India adopted a dual GST model, meaning that taxation is administered by both

.
the Union and State Governments Transactions made within a single state will be levied with
Central GST (CGST) by the Central Government and State GST (SGST) by the government of

.
that state For inter-state transactions and imported goods or services, an Integrated GST (IGST)

.
is levied by the Central Government GST is a consumption-based tax, therefore, taxes are paid

to the state where the goods or services are consumed not the state in which they were produced .
IGST complicates tax collection for State Governments by disabling them to collect the tax owed

.
to them directly from the Central Government Under the previous system, a state would have to

only deal with a single government in order to collect tax revenue .

Rates-:

The GST is imposed at different rates on different items . the GST rates for goods at nil rate,

.
5%, 12%, 18% and 28% to be levied on certain goods The rate of GST is 18% for soaps and

.
28% on washing detergents GST on movie tickets is based on slabs, with 18% GST for tickets

. . .
that cost less than Rs 100 and 28% GST on tickets costing more than Rs 100 The rate on

under-construction property booking is 12% .

Effects and Impacts -:
The introduction of the GST increased the costs of most consumer goods and services in India

.
including food, hotel charges, insurance and cinema tickets Upon its introduction in the
country, GST led to a number of protests by the business community, primarily due to an

increase in overall taxes and hence the prices of goods .

Check posts across the country were abolished ensuring free and fast movement of goods .
The Central Government had proposed to insulate the revenues of the States from the impact of
GST, with the expectation that in due course, GST will be levied on petroleum and petroleum

.
products The central government had assured states of compensation for any revenue loss

.
incurred by them from the date of GST for a period of five years However, no concrete laws

were made to support such action .

CHAPTER 8

LITERATURE REVIEW OF GST

 Models of GST
There are three prime models of GST, which are available in existing literature which are as
follows:-

.
1 GST at Central (Union) Government Level only

2. GST at State Government Level only

3. GST at both, Union and State Government Levels

 Genesis-:

The idea of moving towards the GST was first mooted by the then Union Finance

.
Minister in his Budget for 2007-08 Initially, it was proposed that GST would be

.
introduced from 1stApril, 2010 The Empowered Committee of State Finance Ministers
(EC) which had formulated the design of State VAT was requested to come up with a

.
roadmap and structure for the GST Joint Working Groups of officials having
representatives of the States as well as the Centre were set up to examine various aspects
of the GST and draw up reports specifically on exemptions and thresholds, taxation of

.
services and taxation of inter-State supplies Based on discussions within and between it
and the Central Government, the EC released its First Discussion Paper (FDP) on GST in

.
November, 2009 This spells out the features of the proposed GST and has formed the

basis for discussion between the Centre and the States sofar .
 GST and Centre-State Financial Relations-:

Currently, fiscal powers between the Centre and the States are clearly demarcated in the

.
Constitution with almost no overlap between the respective domains The Centre has the
powers to levy tax on the manufacture of goods (except alcoholic liquor for human

.
consumption, opium, narcotics etc ) while the States have the powers to levy tax on sale

.
of goods In case of inter-State sales, the Centre has the power to levy a tax (the Central

.
Sales Tax) but, the tax is collected and retained entirely by the originating States As for

.
services, it is the Centre alone that is empowered to levy service tax Since the States are
not empowered to levy any tax on the sale or purchase of goods in the course of their
importation into or exportation from India, the Centre levies and collects this tax as

.
additional duties of customs, which is in addition to the Basic Customs Duty This
additional duty of customs (commonly known as CVD and SAD) counter balances excise

duties, sales tax, State VAT and other taxes levied on the like domestic product .
Introduction of GST would require amendments in the Constitution so as to concurrently

empower the Centre and the States to levy and collect the GST .
 Goods and Services Tax Council (GSTC)-:
.
The GSTC has been notified with effect from 12th September, 2016 GSTC is being assisted by

a Secretariat. Thirteen meetings of the GSTC have been held so far. The following decisions
have been taken by the GSTC:

. .
(i) The threshold exemption limit would be Rs 20 lac For special category States enumerated

.
in article 279A of the Constitution, threshold exemption limit has been fixed at Rs 10 lac .
. .
(ii) Composition threshold shall be Rs 50 lac Composition scheme shall not be available to
inter-State suppliers, service providers (except restaurant service) and specified category of

manufacturers .
(iii) Existing tax incentive schemes of Central or State governments may be continued by

.
respective government by way of reimbursement through budgetary route The schemes, in the

present form, would not continue in GST .

 .
(iv) There would be four tax rates namely 5%, 12%, 18% and 28% Besides, some goods and

.
services would be under the list of exempt items Rate for precious metals is yet to be fixed A .
cess over the peak rate of 28% on certain specified luxury and sin goods would be imposed for a
period of five years to compensate States for any revenue loss on account of implementation of

.
GST The Council has asked the Committee of officers to fit various goods and services in these

four slabs keeping in view the present incidence of tax .

Features of GST

I. It would be a dual GST with the Centre and the States simultaneously levying it on a

common base .
II. It would replace the following taxes currently levied and collected by the Centre:
(a) Central Excise Duty
(b) The Excise Duty levied under the Medicinal and
Toiletries Preparation Act
(c) Additional Duties of Excise (Goods of Special Importance)
(d) Additional Duties of Excise (Textiles and Textile Products)
(e) Additional Duties of Customs (commonly known as CVD)
(f) Service Tax

(g) Cesses and Surcharges .

III. State taxes that would be subsumed under GST are:
(a) State VAT
(b) Central Sales tax
(c) Luxury Tax
(d) Entry tax
(e) Entertainment tax
(f) Taxes on lottery, betting and gambling

III. .
Tobacco and tobacco products would be subject to GST In addition, the Centre could

continue to levy Central Excise duty and the State to sales tax .
IV. A common threshold exemption would apply to both CGST and SGST and dealers with a

. ..
turnover below it would be exempt from tax A compounding option (i e to pay tax at a

flat rate without credits) would be available to small dealers above this threshold .
V. The list of exempted goods and services would be kept to a minimum and it would be

harmonised for the Centre and the States .

VI. Exports would be zero-rated .

VII. An integrated GST(IGST) would be levied on inter-State supply of goods and services .
.
This would be collected by the Centre so that the credit chain is not disrupted Accounts
would be settled periodically between the Centre and the State to ensure that the State
GST components is transferred to the destination State where the goods and services are

eventually consumed .

Benefits of GST
(A) Make in India

(i) Will help to create a unified common national market for India, giving a boost to foreign
investment and “Make in India” campaign;
(ii) Will prevent cascading of taxes as Input Tax Credit will be available across goods and
services at every stage of supply;
(iii) Harmonization of laws, procedures and rates of tax;
(iv) It will boost export and manufacturing activity, generate more employment and thus increase
GDP with gainful employment leading to substantive economic growth;
(v) Ultimately it will help in poverty eradication by generating more employment and more
financial resources;
(vi) More efficient neutralization of taxes especially for exports thereby making our products
more competitive in the international market and give boost to Indian Exports;
(vii) Improve the overall investment climate in the country which will naturally benefit the
development in the states;
(viii) Uniform SGST and IGST rates will reduce the incentive for evasion by eliminating rate
arbitrage between neighboring States and that between intra and inter-state sales;
(ix) Average tax burden on companies is likely to come down which is expected to reduce prices
and lower prices mean more consumption, which in turn means more production thereby helping

in the growth of the industries . This will create India as a ” Manufacturing hub”.

(B) Ease of Doing Business-:

(i) Simpler tax regime with fewer exemptions;

(ii) Reductions in the multiplicity of taxes that are at present governing our indirect tax system
leading to simplification and uniformity;
(iii) Reduction in compliance costs - No multiple record keeping for a variety of taxes - so lesser
investment of resources and manpower in maintaining records;
(iv) Simplified and automated procedures for various processes such as registration, returns,
refunds, tax payments, etc;
(v) All interaction to be through the common GSTN portal- so less public interface between the
taxpayer and the tax administration;
(vi) Will improve environment of compliance as all returns to be filed online, input credits to be
verified online, encouraging more paper trail of transactions;
(vii) Common procedures for registration of taxpayers, refund of taxes, uniform formats of tax
return, common tax base, common system of classification of goods and services will lend
greater certainty to taxation system;
(viii) Timelines to be provided for important activities like obtaining registration, refunds, etc;
(ix) Electronic matching of input tax credits all-across India thus making the process more

transparent and accountable .

(C) Benefit to Consumers:

(i) Final price of goods is expected to be lower due to seamless flow of input tax credit between
the manufacturer, retailer and service supplier;
(ii) It is expected that a relatively large segment of small retailers will be either exempted from
tax or will suffer very low tax rates under a compounding scheme- purchases from such entities
will cost less for the consumers;
(iii) Average tax burden on companies is likely to come down which is expected to reduce prices

and lower prices mean more consumption .

Goods and Services Tax Network and Role of CBEC

Goods and Services Tax Network-:

Goods and Services Tax Network (GSTN) has been set up by the Government as a private

.
company under erstwhile Section 25 of the Companies Act, 1956 GSTN would provide three

.
front end services, namely registration, payment and return to taxpayers Besides providing
these services to the taxpayers, GSTN would be developing back-end IT modules for 25 States

.
who have opted for the same The migration of existing taxpayers has already started from

.
November, 2016 The Revenue departments of both Centre and States are pursuing the presently
registered taxpayers to complete the necessary formalities on the IT system operated by Goods

.
and Services Tax Network (GSTN) for successful migration About 60 percent of existing

.
registrants have already migrated to the GST systems GSTN has already appointed M/s Infosys
as Managed Service Provider (MSP) at a total project cost of around Rs 1380 crores for a period

of five years .
GSTN has selected 34 IT, ITES and financial technology companies, to be called GST Suvidha

.
Providers (GSPs) GSPs would develop applications to be used by taxpayers for interacting with

the GSTN .

Role of CBEC-:
CBEC is playing an active role in the drafting of GST law and procedures, particularly the

.
CGSTand IGST law, which will be exclusive domain of the Centre This apart, the CBEC would
need to prepare, in advance, for meeting the implementation challenges, which are quite

. .
formidable The number of taxpayers is likely to go up significantly The existing IT
infrastructure of CBEC would also need to be suitably scaled up to handle such large volumes of
 .
data Based on the legal provisions and procedure for GST, the content of work-flow software

such as ACES (Automated Central Excise & Service Tax) would require re-engineering DG .
Systems has already constituted a Steering Committee for implementation of GST System for

.
CBEC The IT project of CBEC under GST has been approved by the Cabinet on

.
28thSeptember, 2016 The name of this project is ‘SAKSHAM’ involving a total project value

.
of Rs 2,256 crores .
It was also felt that the organizational structure and deployment of human resources needed a

.
review for smooth and effective implementation of GST A Working Group has after extensive

deliberations and studies, submitted its Report which has been approved by the Government .
Augmentation of human resources would be necessary to handle large taxpayers’ base in GST

.
scattered across the length and breadth of the country Capacity building, particularly in the field
of Accountancy and Information Technology for the departmental officers has to be taken up in a

.
big way A massive four-tier training programmed is being conducted under the leadership of

NACEN. This training project is aimed at imparting training on GST law and procedures to

more than 60,000 officers of CBEC and Commercial Tax officers of State Governments.
Officers of the office of CAG are also participating and getting trained in this training

.
programmed More than 50000 officers have already been trained .
It is expected that a momentous reform like GST is popularized and familiarized to the trade and

.
industry who are the vital stakeholders in successful implementation of this reform Massive
Public outreach and knowledge sharing programmers being conducted by various formations of
CBEC which, after Model GST Law was put in public domain, has reached to an audience of

more than 20,000 .

 .
CBEC would be responsible for administration of the CGST and IGST law In addition, excise
duty regime would continue to be administered by the CBEC for levy and collection of central

.
excise duty on five specified petroleum products as well as on tobacco products CBEC would

also continue to handle the work relating to levy and collection of customs duties .

CHAPTER 9

OBAJECTIVE
The main objective of this internship report is that I have completed my 45 day internship in
karvy data management services as a GST executive we have to collect the primary data from the

.
market for those firm whose turnover is more then 20 lac And CA and advocate also who filing
there client tax we have to take there firm name there contact no and there email id for give them
brief knowledge of the software the software of karvy company made for filing the GST is very
easy for the firm to fill there invoice very easily they can upload his file in the software, the
report is on to know about the karvy data management in field they they are mainly working in

.
stock broking they We have also improved our communication skill from this internship . And
.
also karvy set some price in his software so also we can learnt many good thing from this

internship . In this internship some of the customer is very hyper but we know how to deal with
this type of customer. we convince the CA and firm owner to take the karvy software . Which
is made for GST filing.
 CONCLUSION

CONCLUSION-:
The overall conclusion is karvy software is better than other software the karvy company very
effective software to fill the GST through internship in Karvy Company I just get knowledge of
GST and how to deal with the customer karvy software is very cheap in pries and provide proper

.
function and knowledge of GST The GST System is basically structured to simplify current

.
Indirect Tax system in India A well designed GST is an attractive method to get rid of
deformation of the existing process of multiple taxation also government has promised that GST
will reduce the compliance burden at present there will be no distinction between imported and

.
Indian goods & they would be taxed at the same rate Many Indirect Taxes like Sales Tax, VAT

. ..
etc , all are finished because there will be one tax system now i e GST, that will reduce

.
compliance present burden GST will face many challenges now the GST will implement and

.
will result to give many benefits In overall through this study we conclude that GST playing a
dynamic role in the growth and development of our country GST same tax for every things GST

.
is designed to remove the burden by ending many Indirect Taxes GST will be important for
economy in following ways like GST will reduce tax evasions, it will help to provide more

.
money to backward states like Bihar, Jharkhand etc which will improve the economy of the
country it will also help in removal of local tax BIAS which means a person can set his factory in

.
any state without worrying about different tax systems In conclusion we can say that GST is

one tax that can be a major break through in India taxation system .
REFERENCES-:

. .
http://www economictimes com
Reference on Goods & Services Tax by ICSI

. .
http://www gstindia com

http://www.gstseva.com

http://empcom.gov.

http://economictimes.indiatimes.com

http:// www.taxguru.in

www.cbec.gov.in