Article on "EVOLUTION OF GST IN INDIA" by Akshat Anand

EVOLUTION OF GST IN INDIA

Akshat Anand

B.Com Semester II (2022-26)

GST, or Goods and Services Tax, is a comprehensive indirect tax levied on the supply of goods and services in India. It was introduced on July 1, 2017, as a significant step towards simplifying and unifying the tax structure in the country. 

The evolution of GST in India can be traced back to several key milestones:

1. Need for a Unified Tax System: The concept of GST in India can be traced back to the recommendations of the Kelkar Task Force on the indirect tax system in 2003. The task force proposed a comprehensive indirect tax reform that would merge various central and state taxes into a single tax.

2. Formation of Empowered Committee: In 2007, an Empowered Committee of State Finance Ministers was formed to design and implement GST. The committee, under the leadership of Asim Dasgupta, played a crucial role in shaping the GST structure.

3. Introduction of Constitutional Amendment Bill: In 2011, the government introduced the Constitution (115th Amendment) Bill in the Lok Sabha, seeking to confer concurrent powers to the center and states to levy GST. The amendment bill aimed to create a framework for the implementation of GST.

4. Passing of GST Bill: After several rounds of deliberations and amendments, the Parliament passed the Constitution (122nd Amendment) Bill in August 2016. This marked a crucial milestone in the evolution of GST in India.

5. Formation of GST Council: The GST Council, consisting of the Union Finance Minister and Finance Ministers of all states, was formed to address various GST-related issues, such as tax rates, exemptions, and thresholds. The council played a vital role in deciding the structure and implementation of GST.

6. Designing the GST Framework: The GST framework required the integration of various central and state taxes, such as Central Excise Duty, Service Tax, VAT, and others, into a unified tax system. Extensive consultations and discussions were held to finalize the structure and rates of GST.

7. GST Implementation: On July 1, 2017, GST was officially implemented in India. With the introduction of GST, multiple taxes and levies were replaced, resulting in the simplification of the tax structure and reduction in tax cascading.

8. Subsequent Changes: Since its implementation, several changes and modifications have been made to the GST framework based on feedback and experiences. The GST Council continues to meet regularly to address issues and ensure the smooth functioning of the taxation system.

Overall, the evolution of GST in India highlights the government's efforts to simplify the tax structure, promote ease of doing business, and create a unified market. While there have been challenges in the implementation and transition, GST has significantly impacted the Indian economy and continues to evolve to meet changing needs.

ARTICLE ON "ACCOUNTING STANDARDS VS INDIAN ACCOUNTING STANDARDS" by Khushi Gupta

 ACCOUNTING STANDARDS VS INDIAN ACCOUNTING STANDARDS

Khushi Gupta, Roll No. 90

B.Com Semester 2, Session 2021-24

Accouting standard have been develop in India over time . It is also called IND AS .Such standards need to be adopted by various corporate firms and NBFCs in India under the supervision of the Accounting Standard Board (ASB). The Accounting Standard Board was established in 1977 as a regulatory body. ASB is a professional and autonomous body managed by the Institute of Chartered Accountants of India. Apart from this there are other bodies such as CII,FICCI, and ASSOCHAM which regulate ASB . The Indian Government Body that recommends this Standard to the Department of Corporate Affairs is the National Advisory Committee on Accounting Standards.

Indian Accounting Standard (IND AS)are a set of Accounting Standards notified by the Ministry of Corporate Affairs which are conversed with International Financial Reporting Standards (IFRS).Now, India will have two sets of Accounting Standards. Existing Accounting Standards under companies (AS) rules 2006 and IFRS conversed IND AS.

Accounting Standards (AS) are generally rule based and are less flexible for example as per AS-21 consolidation is required if a company holds 50% of the voting rights or control the board of directors. But in comparision, IND AS are generally substance based for example consolidation is required under IND AS- 110 if the holding company has control over its subsidiary.

AS applicable to not only the companies but to other entities. To the companies, notified standards under company rule are applicable And for other entities AS published by ICAI are applicable. But in comparison IND AS will be applicable in phases to mainly large companies . IND AS applicability from Financial Year 2015-16 is Voluntarily.

Phase 1 (Financial Year 2016-17) : All companies whose net worth is more than Rs 500 Crore. Holding, Subsidiary ,Joint Venture or Associate Companies of above.

Phase 2 (Financial Year 2017-18) : All companies whose net worth is more than  Rs 250 Crore. Holding, Subsidiary, Joint Venture or Associate Companies of above.

AS generally use the word “SHOULD” which is more advisory in nature. IND AS generally use the word “SHALL” in its guidance which makes it more strict. New Standards or guidance were not existing in AS. IND AS provides guidance on various transactions like agriculture, business combinations, etc. Interpretations or various guidance notes and other publications are available along with AS in existing scenario. IND AS has incorporated various interpretations which are part of IFRS.

AS contains subjectively at quite or few places. But IND AS there is specific guidance on various matters like depreciation or revenue recognition.

THE LIST OF IND AS AND AS:

In IND AS -1 presentation of financial statements. But in AS -1 disclosures of accounting principles and policies are applicable.

In IND AS-2 Inventories. But in AS-2 Valuation of Inventories are applicable.

In IND AS-7 Statement of Cash Flows. But in AS Cash Flow Statement is in AS-3 are applicable.

In IND AS-8 Accounting Policies changes in Accounting Estimate and Errors. But in

AS-8 Withdrawn and included in AS-26 are applicable.

In IND AS -12 Income Taxes. But in AS Accounting for Taxes on Income is in AS -22 are applicable.

In IND AS -33 Earnings Per Share. But in AS -20 Earnings Per Share are applicable.

In IND AS-10 Events occur after the reporting period. But in As -10 Accounting for Fixed Assets are applicable.

In IND AS -21 The Effect of Changes in Foreign Exchange Rates. But in AS -21 Consolidated Financial Statements are applicable.

In IND AS -18 Revenue. But in AS -9 Revenue Recognition is applicable.

In IND AS -23 Borrowing Costs. But in AS-16 Borrowing costs are applicable

Article on "Why is Gillette so successful" by Shruti Agarwal

 Why is Gillette so successful?

 – The Marketing Case Study

Shruti Agarwal, Roll No.: 235

B.Com Semester IV , Session 2020-23

INTRODUCTION:

Gillette is an American brand of men’s grooming and other personal care products including shaving supplies, owned by the multi-national corporation Procter & Gamble. You must be seeing this brand’s advertisements every day on your TV screens and when it comes to beard shaving and men’s personal care, the top most name that strikes your mind is – Gillette. Gillette is used by almost 750 million men in more than 200 million countries. Do you know how Gillette became one of the market leaders in the world?

MARKETING STRATEGY OF GILLETTE:

In 1921, when new competitors started entering the market, Gillette saw a massive decline in its product sales by 20% by the end of 1921. It was when Gillette needed to come up with a good marketing strategy to boost its sales. Gillette tweaked its pricing model and called it a ‘Razor Blade Strategy’. There are two complementary products attached to the strategy. The primary product is the razor and the secondary is the blades. Gillette reduced the cost of its razors and started selling them at an ultra-cheap price and low margins and strategized to sell blades at a higher profit margin. To understand it in a simpler way, Gillette let the customers do one-time purchases (razors) at a lower price and won them over as loyal customers. Now the same customer will come back, again and again, to purchase the high-price margined blades for the use of razors that was bought earlier. That’s how Gillette started making a recurring profit from the sale of blades even after selling the razors at low-profit margins. This amazing marketing strategy followed by Gillette made them huge sales with an increase of 127% by the end of 1922, i.e in just one year, Gillette was able to increase its sales by 127% as well as retain its customers for future sales.

CONCLUSION:

This massive increase in sales for the company serves as an inspiration for many other companies today. Companies like Sony use this same pricing model for selling PlayStation in the market and makes recurring profits by selling CDs and game subscriptions. Amazon Kindle also uses this same strategy by selling its kindle at a lower margin and sometimes even at a zero profit margin and retains its customers for its increase in demand for E-book subscriptions.

Therefore, we can conclude some important pointers from Gillette’s Razor Blade Strategy:

1. Razor Blade Strategy is a pricing model in which one good is sold at a low or zero profit margin and its complementary good is sold at a higher profit margin.

2. This strategy helps the companies in maximum consumer retention and recurring profit through the sales of their secondary product.

3. There is an example of a camera-selling company called Kodak, which used this same strategy by selling cameras at a lower margin and hiked the prices of the film rolls. But after a certain point in time, this strategy backfired on the company’s profits and incurred huge losses due to less demand for film rolls and the rise of digital cameras.

Reference links:

https://youtu.be/YRYLPeWCOP0

https://en.wikipedia.org/wiki/Gillette

https://www.forbes.com/companies/gillette/?sh=4419a0dc10a0

Article on "Unicorn Startups" by Saima Sarwar

 Unicorn Startups

Saima Sarwar, Roll No.- 53

B.Com Semester VI, Session 2019-22

Introduction

In Business, the word “Unicorn” is defined as those privately held start-up companies valued at over US$1 billion. This term was first used and get popularised in 2013 by venture capitalist Aileen Lee who choosed the mythical animal to represent the statistical rarity of such successful ventures. There are more than 1,000 unicorns around the world, as of March 2022, according to CB Insights. Collectively, they are valued at $3,516 billion total. Start-ups worth over $1 billion are called unicorns because they are so rare often, these companies have seen skyrocketing success, which has launched them into almost a mythical category, since they are so rare.

Main Content

With the development of technology, the number of global startups has been increased. Among the startups, firms that achieve $1 billion or more valuation are especially called unicorns to describe the rarity of highly successful startups. Becoming one of the unicorn startups brings notable growth with respect to a chance of financial capital and reputation because it is clear evidence of the firm’s potential competitiveness. Unicorn startups are generally of small size, which facilitates strategic decision making and implementation of quick practical measures. Their founders and leaders are usually experienced entrepreneurs, who have often dealt with high-risk situations and failures. They are financed by venture capital companies, which pressure them for quick development of a new business and foster innovation and launching of new products and services. Innovations offered to target audiences are digital, which reach the market leveraged by digital platforms widely spread ideas and information through social networks; that is much faster than traditional businesses that struggle and invest in the conventional marketing of products and services.

Unicorns are able to respond dynamically to adversity, especially because they can adapt BMI (Business Model Innovation) for making specific digital innovations as solutions to meet market needs quickly. This is because the business model is built around a single digital platform or software, which is very fast and cheap to develop and promote.BMI in digital startups is a gap in literature. It is an important step for digital startups to survive in the initial stage of their journey but should not be restricted to that phase. 

It is continuously necessary, especially for adopting innovative strategies or redefining the strategy to withstand crises by seeking economic results different from those already used. While work from home during pandemic fueled the growth of digital business in India, the incident also resulted in a long unicorn list. Mainly three factors, a thriving digital payments ecosystem, large smart phones user base and digital-first business models, have come together to attract investors. Tech companies, which have become household brands, are contributing to the unicorn boom in India as smartphone penetration and digitization of commerce in every aspect of life has increased manifold during the pandemic. Besides fintech, e-commerce grocery, SaaS and marketplace players are contributing the most to unicorn universe.

As of 05th May 2022, India is home to 100 unicorns with a total valuation of $332.7 Bn. The year 2021, 2020, and 2019 saw the birth of the maximum number of Indian unicorns with 44, 11, and 7 unicorns coming each year, respectively. COVID-19 has caused a great amount of socio-economic suffering globally, but during this time, the resilient Indian Entrepreneurs have worked effortlessly to not only contribute to the economy but to also contribute toward COVID-19 relief efforts. Indian unicorns are also exploring the public listing avenues as a next step to realize the growth potential. Some one of big unicorn names that offered an IPO include Zomato, Nykaa, PolicyBazaar, Paytm and Freshworks, while many are already in line such as Delhivery, Mobikwik and CarDekho. Today, 1 out of 10 unicorns globally have been born in India. Overall, 2021 is experienced an exponential boom when it comes to startups entering the unicorn club. This is a testament to the vibrant startup ecosystem present in India. Till date, 2022 has witnessed the birth of 14 unicorns with total valuation of $ 18. 9 Billion (As of 05th may 2022).

Conclusion

In conclusion, Unicorn startups are the most popular and widely used term nowadays; besides this it has a great impact on socio- economic growth and development. With the increase in digital world, the need of innovative startups which makes the life much easier is necessary. Innovative startups are establishing with promising ideas, in which investors are interested in investing their funds and this all resulted in the birth of unicorn startup worth $1 billion. And its rarity is decreasing day by day because of rapid increment in number of unicorns nowadays. In terms of the number of unicorn startups, India ranks third position after US and China in the whole world, which shows the passion for growth, success and development that Indian startups have. In upcoming years, we are expecting many more startups to enter in the unicorn list.

Reference- Google

Websites- Wikipedia, investopedia, CBinsight, investindia

Article on " MBA Chai Wala " by Aashi Kumari

 

  MBA CHAI WALA

(an aspiration to learn in top B-schools to becoming a guest speaker in IIMs)

Aashi Kumari, Roll No. 02

B.Com Semester IV, Session 2020-23

Like we all know that India is country which has a large number of youth and they are working so for keeping them active and energetic there is a famous beverage in INDIA ‘TEA’.

Many people found opportunity in this segment and started their business in ‘TEA’. The one of the famous and well-known entrepreneur is a Prafull Billore also known as MBA CHAI WALA.

He is a graduate from bachelor of commerce and while prepearing for MBA in finance. He started working for other companies than he found that why to work for others if I can become an owner of myself so he started a TEA STALL with 8,000 rupees which he borrowed from his father and the first day of TEA STALL was went terribly wrong and then he started approaching customer by talking them politely in English it attracts the people that a chaiwala is speaking in English. It gains so much popularity through social media, it includes a special corner in his stall for job seeker people where they can give their details and if the persons is required they can approach them. His motive not to earn only from their business but also providing employment to the person.

It gains the popularity because of the name and many people calls it a last option for not getting place in a MBA but Prafull says that a MBA stands for Mr.Billore Ahmedabad chaiwala and not Masters in Business Administration.

It was started in a 2017 and built an empire of 3 crore by selling tea. Now they are having a turnover of 5 crore and the net worth in 2021 was more than 5 crore. It has a 50+ total outlets in many major cities of India and it targets to cross 200 outlets by the end of 2022. MBA chaiwala also takes an order to set up a stall in weddings and any other functions which takes place in India.

It has a bright future ahead because TEA is a drink which consume by the all age groups of INDIA. Now Prafull is willing to start his own Tea Leaf brand and his solo aim is to provide a local Tea theela a great business idea and to help in expanding their business.

In his initial days he only make a 150 rupees but now his per day income is approx. 1.38 lakhs and the monthly income is approx. 42 lakh and their turnover per year is approx. 5 crore. The total net worth of Prafull is 30 million he is one of the youngest millionaire entrepreneur of India who become millionaire by selling tea.

Reference Website: 

www.gkhub.in

en.wikipedia.org

www.mbachaiwala.com

 

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Article on " Fintech Revolution in India" by Bindu Kumari

 

   FINTECH REVOLUTION IN INDIA  

Bindu Kumari ,  Roll No. - 50 

Sem. - lV ( 2020- 2023)

                 

FINTECH : FINANCE + TECHNOLOGY

INTRODUCTION

Fintech which stands for financial technology is the term used to describe any technology that delivers financial services through software such as online banking, mobile payments app or even cryptocurrency. It help to develop unique and innovative models of assessing risk. Fintech has transformed the financial sector in India and is spreading around the world. Fintech has now started to be an important part of our daily life transaction.

Fintech is rapidly changing the face of the banking industry as several banks are now switching to digitalization as well as paperless and cashless processes. India is one of the fastest growing economies in the world. It transforms the people's lives. India becoming a hub for many fintech start-ups. Government initiatives promoting digitalization of financial systems and a cashless economy are another hope for shifting consumer focus towards better digital alternatives. The rapid growth of digital payments is growing.During the Covid-19 pandemic the entire population move drastically towards online modes of communication and works. Approximately 80% customer attracts towards digital market, customers is now three times higher than before the crisis.

GROWTH AND EXPANSION OF FINTECH IN  INDIA

The growth and expansion of the fintech in India has been done by a number of factors including the growing availability of smartphones, increased Internet access and high speed connectivity. In recent years, India's payments infrastructure has been improved with the introduction of new payments mechanism such as phonepe, paytm, goggle pay,  amazon pay, UPI, BHIM and others. The government's "MAKE IN INDIA" and "DIGITAL INDIA" projects also played a significant role in accelerating the adoption of fintech. On December 2021 PM Narendra Modi said that it was a time to convert fintech initiatives into a fintech revolution to provide a low cost and reliable payment system. The Indian fintech market currently stands as the third largest fintech ecosystem in the world behind the US and China.

 BIGGEST FINTECH STARTUP IN INDIA

Paytm is  India's number one biggest fintech startup. Paytm is founded in 2010 by Vijay Shekhar Sharma. It's headquarter is situated in Noida. Paytm is an Indian digital payment and financial services company. It offers financial services to customers through Mobile payment, online payment, bill payment, money transfer etc. It helps customers to settle down their transaction at anywhere.It change the lifestyles of customer and also help to save time, energy and money of customer for transfer of money. Paytm also help to settle down bills such as electricity, mobile, gas, cab etc. In August 2015 paytm receive license from RBI to establish paytm payment bank as a separate legal entity but the bank officialy inaugurated in November 2017. Paytm also launch paytm mall app which allows customer to online shopping. After the demonetization "Paytm Karo" is the famous Paytm tagline. 'Paytm Karo' means just transfer the money by using the app. Paytm helps to change the habits and behaviour of the Indian finamace sector.

FUTURE OF FINTECH IN INDIA        

Fintech offering customers faster financial services and product. Recently On December 9, 2021 Paytm signed an MoU with the skill development minister to train over 6000 young Indians in fintech through a six month course and even offer employement to eligible candidates. So the development of fintech industry is necessary for both global and Indian financial sector.

Article on "Do you want to become financially independent at your 20s?" by Shruti Chopra

 

Do you want to become financially independent at your 20s?

By Shruti Chopra, Roll No. 237

B.Com Semester IV, Session 2020-23

Do you want to learn how to make money out of money?

Yes, you read it right, you can be financially independent at your 20s, you can help your parents by reducing the burden of your educational expenses. There are a lot of ways of doing so, like; taking tuitions, doing part time jobs, etc. but today I am going to tell you about a source which is way more convenient but requires a good amount of knowledge and patience. Also it is not a children’s play .

Yes, you guessed it right. I am talking about stock market.

What is stock market

It is a place where regular activities of buying, selling and issuance of shares of publicly held companies take place. In the stock market one can also trade in financial instruments such as derivatives, bonds, mutual funds along with shares of a listed company.

Now, what are financial instruments?

A financial instrument is a contract between two parties, which can be traded and settled. The contract represents an asset to one party (the buyer) and a financial liability to the other party (the seller).

Ok, this is going to be very extensive and you might get bored, so just let’s not go into the depth of it; rather if anyone gets interested towards stock market by reading this blog can simply search on google, there is an ample amount of information available.

Now, you might be thinking about what are listed companies, and where are the actually listed?

So, here starts the main topic of this blog.

What is a listed company & where is it listed?

Imagine you want to buy a property and for that you do not have enough money of your own, so you decided to withhold some money from your friend in exchange of some interest. Similarly, companies do raise money from normal public by getting listed on an exchange. The sale of stock on the open market is one way to raise a great deal of money fast.

In general, company that what to grow and expand have a few ways to raise money.

·      They can borrow the money and pay interest on it.

·      They can seek private investors with deep pockets, who will expect a measure of control in return for their investment

·      They can go public and raise money through sale of share of the company.

What are stock market indices?

We all know a body moves when an external force act on it. Similarly, there are external and internal economic factors acting on a domestic market from all directions resulting in market trends. These trends are either upward or downward in nature. And to help you distinguish between the two trends, there is a metric called the stock market index.

A stock market index combines several stocks to create one aggregate value that investors use for measuring a market (e.g. Bombay Stock Exchange and National Stock Exchange).

In the Indian context, there are two major stock market indices used for evaluating markets: SENSEX and NIFTY. Indian investors can track changes in these indices value over time and use it as a benchmark against which to compare their own portfolio returns.

Now when investors talk about the market, it means thar these are stock market indexes of various sectors of the market that don’t always move in tandem. Because if the did, there would be no reason to have multiple stock market indices. Thus, by understanding of how stock market indices are created and how they differ, you will be able to make sense of the daily movement in the Indian marketplace.

Types of indices in Indian stock market;

·     Benchmark indices like BSE Sensex and NSE Nifty.

·     Brand- based indices like nifty 50 and BSE 100.

·     Market capitalization – based indices such as BSE Midcap and BSE Smallcap .

·     Sectoral indices such as CNX IT, Nifty FMCG, Nifty Bank Index, S&P BSE Oil and Gas, so on.

Apart from these, thematic indices are other type of indices in Indian stock market, which reflect the performance of broad- based investment themes.

 

Index	Price	Change	%Chg
NIFTY 50	16478.10	121.80	0.74
SENSEX	55320.28	427.79	0.78
NIFTY BANK	35085.40	139.25	0.40
NIFTY IT	29761.50	289.30	0.98
S&P BSE Smallcap	26039.27	61.27	0.24

                                                  Source ; moneycontrol.com

 

So readers, this topic is something that cannot be covered in one blog, to know it well one need to have a deep down research and go through a lot of blogs like this.

But to streamline your research, I have some recommendations of books and websites which will help you a lot to become a professional trader:

BOOKS :

·      NEW TRADER RICH TRADER

·      POWER OF YOUR SUBCONSCIOUS MIND

·      HAPPY MONEY

WEBSITE:

·      WWW.MONEYCONTROL.COM