Mba GST Project Report

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MBA GST Project Report
BHMCT (Uttar Pradesh Technical University)
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Project
Report On Goods And ServiceTax (GST).
In Ircon International limited.
Submitted in the partial fulfillment of the requirement for the Degree of
Master of Business Administration to
Dr. A.P.J. Abdul Kalam Technical University,
LUCKNOW.
SUBMITTED TO SUBMITTED BY
Dr. MAMTA SHUKLA NIVEDITA SRIVASTAVA
MBA II Year
ROLL.NO.1752270019
MAHARANA PRATAP COLLEGE OF ENGINEERING.
KOTHI MANDHANA KANPUR.

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CERTIFICATE
This is to certify that Ms. Nivedita Srivastava is bonafide student of the

Maharana Pratap College of Engineering Kanpur has successfully
Completed her project on the topic “Goods and Service Tax (GST)”,
With the special reference to Ircon International Ltd. With during the
Period from 11 June 2018 to 11 August 2018.

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DECLARATION
I Undersigned Nivedita Srivastava student of Maharana

Pratap College of Engineering Kanpur of hereby declare that I have
completed my project, Titled “GOODS AND SERVICE TAX (GST)
on IRCON International Ltd.”
The information submitted herein is true and original to the best of my

knowledge.
Nivedita Srivastava
PLACE: Kanpur

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ACKNOWLEDGEMENT
I wish to express my sincere gratitude to my institute to provide this opportunity to
learn the element of GOODS AND SERVICE TAX.
One person is seclusion is hardly ever able to complete any project or training.
There is always discussion with professional about conceptual matters, which
enhance the idea and the knowledge of trainee.
Thereby, I would like to acknowledge the contribution and support that each
person’s at IRCON INTERNATIONAL LTD. extended to me during my training
period.
I would also like to express my special thanks to my guide Mr.Sudhir Gupta

(Chief General Manager-Tax), Mr. R.K. Jaiswal, Mr. Naveen Makharia and
special Thanks to Mr. Tushar Gera who provide me valuable insight about aspect
of Goods and Service Tax with respect of company and the external environment
with which it associated.
Nivedita Srivastava.
Date:

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FOREWORD
Tax policies play an important role on the economy through their impact on both
efficiency and equity. A good tax system should keep in view issues of income
distribution and ,at the same time , also endeavor to generate tax revenues to
support government expenditure on public service and infrastructure
development .cascading tax revenues have differential impact on firms in the
economy with relatively high burden on those not getting full offsets.
This argument can be extended to international competitiveness of the adversely

affected sectors of production in the economy. Such domestic and international
factors lead to inefficient allocation of productive resources in the economy .This
result in loss of income and welfare of the affected economy.
Value added tax was first introduced by Maurice Laure, a French economist, in
1945. The tax was designed such that the burden is borne by the final consumer.
Since VAT can be applied on goods as well as services it has also been termed as
goods and service tax (GST). During the last four decades VAT has become an
important instrument of indirect taxation with 130 countries having adopted this,
resulting in one fifth of the world’s tax revenue. Tax reform in many of the
developing countries has focused on moving VAT. Most of these countries have
gained thus indicating that other countries would gain from its adoption. For a
developing economy like India it is desirable to become more competitive and
efficient in its resources usage. Apart from various other policy instruments, India
must pursue taxation policies that would maximize its economic efficiency and
minimize distortion and impediments to efficient allocation of resources,
specialization, capital formation and international trade.
Traditionally India’s tax regime relied heavily on indirect taxes including customs
and excise revenue from indirect taxes was the major source of tax revenue till tax
reforms were undertaken during nineties. The major argument put forth for heavy
reliance on indirect taxes was the India’s majority of populations was poor and
thus widening base of direct taxes had inherent limitations. Another argument put
forth for heavy reliance on indirect taxes income was not subjected to central
income tax and there were administrative difficulties involved in collecting taxes.

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The board objectives of our report relates to analyzing the impact of introducing
comprehensive goods and services tax (GST) on economic growth and
international trade; change in rewards to the factors of production; and output,
prices, capital, employment, efficiency and international trade at the sectoral level .
Analysis in this report indicates that implementation of a comprehensive GST in

India is expected to lead to efficient allocation of factors of production thus leading
to gain in GDP and exports. It will also ensure better compliance of tax law and
will remove cascading effective which is still present in taxation system. This
would translate into enhanced economic welfare and returns to the factors of
production, viz. land, labour and capital.

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Executive Summary
The differential multiple tax regime across sectors of production leads to
distortions in allocation of resources thus introducing inefficiencies in the sectors
of domestic production. While indirect taxes paid by the producing firms get
offsets under state VAT and CENVAT, the producers do not receive full offsets
particularly at the state level. The multiplicity of taxes further adds the difficulty in
getting full offsets.
Add to this, the lack of full offsets taxes loaded on the fob export prices. The
export competitiveness gets negatively impacted even further. Efficient allocation
of productive resources and providing full tax offsets is expected to result in gains
for GDP, returns to the factors of production and export of the economy.
The joint working Group of the Empowered Committee of the State Finance
Ministers submitted to its report on the proposed Goods and Service Tax (GST) to
the finance minister in November 2007.A dual GST, one for the entre and other for
the state was to be implemented by 1 April 2010. The new system would replace
the state VAT CENVAT and some other taxes.
The proposed GST would eliminate the cascading effect and would integrate
hitherto disjointed goods and services taxes. It will lead to uniformity in tax rates
and procedures throughout the country.it will ensure better compliance and thus
will increases the revenue of both Centre and state. The export sector will also gain
from his integration of state and Centre taxes. Consumer will be benefited in form
of lower tax rates.
There will be dual tax rate viz. Central GST (CGST) and state GST (SGST).also
for interstate sales there will be an integrated GST. However cross credits among
CGST and SGST are yet to be decided .It is also proposed to keep certain taxes
such as taxes on petroleum products to be kept out of purview of GST.
However, there are major challenges to introduction of GST like amendment of

constitution of India to alter power of taxation of Centre and state rates of SGST
and CGST, standardization to procedure, compensation for revenue loss to state,
etc.

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CONTENTS
 COVER PAGE
 COLLEGE CERTIFICATE
 DECLARATION
 ACKNOWLEDGEMENT
 FOREWORD
 EXECUTIVE SUMMARY
CHAPTER– 1
 INTRODUCTION OF RESEARCH………………..12 -15
CHAPTER– 2
 COMPANY PROFILE…………………………….. 16 - 21
 PROJECTS…………………………………………. 22 – 30
 FINANCIAL PROFILE……………………………. 31 – 38
 BOARD OF DIRECTORS………………………… 39 – 50
 OPERATIOAL PROFILE…………………………. 51 – 57
 AWARDS ………………………………………….. 58 - 59
 SUBSIDIRIES AND JOINT VENTURE COMPANY…. 60 – 68
CHAPTER-3
 INTRODUCTION OF TAXATION................ 70 - 79
a. Meaning of Taxation
b. Characteristics of Taxation
c. Principles of Taxation
d. Tax applicable in India.

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CHAPTER-4
 INTRODUCTION OF GST................ 80 – 153

e. Meaning of GST.
f. History of GST.
g. Key feature of GST.
h. GST Model.
i. GST Rates
j. GST Council
k. GSTIN
l. SWOT Analysis
m. Impact of GST
n. Result Analysis
o. Registration of GST
p. GST Return
q. Important concept of GST
r. Important concept of GST
s. Works contract Act
t. Audit
CHAPTER-5
 CONCLUSION…………….. 154- 157

 ANNEXURE……………….. 158 -172
 REFERENCE……………….. 173
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TABLES
SR. NO CONTENT PAGE NO

1 Performance for the year 31
2 Operating Turnover 32
3 Operational Performance 33
4 Segment wise Profitability 34
5 Dividend History 35
6 Income tax slab for individual tax payers 76
7 equity structure 93
8 Result Analysis 99-100
9 Place of supply 129-134
10 The Place Of Supply Of Services 137-138
11 Works Contract 144
12 Annual aggregate turnover 156
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CHAPTER– 1
INTRODUCTION ABOUT
RESEARCH.
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INTRODUCTION
Background:-
Internship is the process of working as an assistant to gain practical experience and
skills in an occupation. In order to expose the students to the actual working
environment, internship has been included as a compulsory requirement for the
successful completion of two-year MBA (Finance) under AKTU University. MBA
(Finance) is a management program with the provision of four semester
comprising of two month industrial training. Internship is an opportunity to
observe, learn and understand the corporate culture, acquire knowledge and skills
in the respective field which helps the students in their further carrier development.
It is carried out in the organization which suits the area of specialization. Internship
provides the opportunity to understand how the knowledge acquired through the
lectures, group discussion and formal study is applied in real working situation. It
is the best way of knowledge gaining as it provides as experience. Similarly the
assigned responsibilities during the internship period help to enhance the
interpersonal and communicative skills and boost up the confidence level as well.
Even though the interns are not the employees of the organizations, they are given
an opportunity to work as if they are the employees. The interns do what the staffs
of the organizations have to do. However, they do not have obligations or authority
over anything. The interne did there internship in under Mr.Sudhir Gupta. The
interne was given the opportunity to observe and learn about the GST Registration
and Return process.
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Objectives of the Study :

The general objective of the study is to get practical insights of Goods and Services
Tax.
The specific objectives are as follows:
TToo learn
le a r n aabout
b o u t th
thee GGST
S T RRegistration
e g is tra tio n pprocess
ro c e s s
TToo learn
le a rn hhow
o w to
to file
f ile GST
G S T RReturn
e tu r n bboth
o th oonline
n lin e &
&
ooffline
f flin e
TToo help
h e lp cclients
lie n ts in
in th
thee RRegistration
e g is tra tio n pprocess.
ro ce ss.
TToo help
h e lp cclients
lie n ts in d o w n lo a d in g th
in downloading thee offline
o f f lin e return
re tu rn software
s o f tw a r e
Figure:1
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Rational of the study

In college we learn the organizational structure only in theoretical basis. Internship
is the place where how theoretical knowledge are useful in real life scenarios. For
that students need to prepare resumes, write cover letters and go through interviews
as if they were applying for the job. This gives students valuable experience in
preparation for employment. The internship allows opportunities for the
development of practical’s skills in contexts where professional criticism is both
immediate and constructive. It also furnishes students with opportunities to observe
and understand connections between coursework and skills needed to perform
effectively in a given profession. Finally, internship aid in the identification of
knowledge and skills essential to doing well in a particular profession.
Scope of the study

Generally, an internship consists of an exchange of services for experience
between the student and an organization Internship program is a good opportunity
to show our learning skills that we get from our school/college. Students can also
use an internship to determine if they have an interest in a particular career. It helps
to build Curriculum Vitae (CV) for the student.
Methodology
For the preparation of this report both primary and secondary sources of data are
used. The secondary data are collected from annual reports, brochures, website of
GST, different financial magazine, published documents. Most of the information
in this report is written on the basis of experience gained by the internee in the
company during the period of internship. While preparing this report I took help
from company staff and group discussion with friends. I have consulted related
departmental staff as a primary source. For the secondary data I used GST website,
financial express website, and clear tax website.
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Organization Selection
Selection of the organization is one of the most difficult tasks. However the
specialization of the student in finance has made GST a better option for doing
internship. Since GST is related to financial transaction, it would be easy to
understand various dimensions related to services like registration, quarterly return,
monthly return, annual return. Besides this, one should have strong reference to get
enrollment in the organizations. So because of the reference of the college.
Duration
The duration of internship period has been defined for 2 Months by the AKTU
University. The intern has completed internship from 10 th June to 10th August in
Ircon international limited.
Limitations of the Study

Even though great support was provided by the organization and the staff to the
intern during the internship period to make the work environment conducive, they
had to face various difficulties during the internship period. Due to various
unavoidable constraints, the report could not do complete justice to the study. The
interns in the organization are more focused to assist their supervisors. It restricts
the amount of information and the level of complex work assigned to its interns
owing to the confidentially and competency issues. It is because of this interns get
to learn mostly by observation and some amount of discussion with supervisor
only. The report is limited to the department in which the intern is placed it might
not be able to provide the comprehensive knowledge of the overall functioning of
the company.
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CHAPTER– 2
Company Profile
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About Ircon International Limited:
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About Ircon International Limited:
Ircon international limited (ircon), a government company incorporated by the central

government (ministry of railways) under the companies act, 1956 on 28 april, 1976
originally under the name Indian ralways construction company limited is the leading
turnkey construction company in the public sector known for its quality, commitment
and consistancy in terms of performance. Ircon has widespread operations in several
states in india and in other contries (Malaysia, Nepal, Bangladesh, Mozambique,Ethopia,
Afganistan, U.K. Algeria & Sri Lanka now).
Ircon is a specialized constructions organizaton covering the entire spectrum of

construction activities and servies in the infrastructure sector. However, Railway
and Highway construction, EHP sub- stations (engineering and constructons), and
MRTS are the core competence areas of IRCON.
IRCON operates not only in a highly competitive environment but also in difficult
terrains and regions in India and abroad and is an active participant in prestigious nation
building projects . Ircon has so for complete more than 300 infrastructure projects in
India and more than 100 projects across the globe in more than 31 countries.
The Company has a long standing reputation as a sectoral leader in Transportation

Infrastructure amongst the public sector construction companies in the Country
with specialization in execution of Railway Projects on turnkey basis or otherwise.
IRCON is known for its quality, commitment and consistency in terms of its
performance.
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After commencing business as a railway construction company it diversified

progressively since 1985 to roads, buildings, electrical sub-station and distribution,
airport construction, commercial complexes, as well as to metro works. It has been
one of the few construction companies in the public sector to have earned
substantial foreign exchange for the Country and paid dividend without fail every
year to the Government. As a construction organization, the Company operates in
the entire spectrum of construction activities and infrastructure services; Railways
and Highway Construction, Tunnels & Bridges, Railway Workshops, EHP sub-
station (engineering and constructions) and MRTS being the core competence
areas.
The Company has executed many landmark construction projects in the last 41
years both in India and abroad. In India, in particular, it has also been undertaking
projects even in difficult terrains and disturbed regions. The Company has so far
completed more than 120 projects in more than 24 countries across the globe, and
376 projects in India. The Company is an ISO certified Company for Quality,
Environment, and Occupational Health and Safety Management Systems, a
Schedule ‘A’ public sector company, and a Mini Ratna – Category I.
The company is well known for undertaking challenging infrastructure projects,
especially in difficult terrains in India and abroad. The core competence of the
company in order of priority is - Railways, Highways and EHT Substation
Engineering and Construction including Ballastless track, electrification, tunning,
signal & telecommunication as well as leasing of locos, construction of roads,
highways, commercial, industrial & residential buildings and complexes, airport
runway and hangers, metro and mass rapid transit system, etc.
During its 42 years of operation, Ircon has emerged as front ranking construction
company of international repute having executed several prestigious projects. Ircon
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Has been figuring in the list of top 225 International Contractors since 2009-10
consistently, as per Engineering News Record (ENR), published by Mc Graw-hill
Construction (Financial) USA. Ircon has so far completed about 378 major
infrastructure projects of National importance in India and 127 projects across
globe in more than 21 countries. Ircon has over 1000 trained technical personnel
having rich experience in execution of infrastructure projects including Railway
Project. Ircon has capacity to mobilize adequate resources for large projects due to
its strong technical manpower base and financial position. Besides its own
resources Ircon draws its strength from more than 150 years of experience of
Indian Railways in all aspects of Railway Construction and management.
Presently, Ircon is executive projects abroad in Nepal, Bangladesh, South Africa,

Myanmar and Algeria. In India, the Company is executing several prestigious
projects which include J & K Rail Link Project, Road over Bridges in the State of
Rajasthan and Bihar, New rail Coach Factory at Rae Bareilly (U.P.), Sivok-Rangpo
new Rail Line Project, three contract packages on Western Dedicated Freight
Corridor, Coal connectivity Projects in Chhattisgarh, Orissa and Jharkhand,
National Highway projects in Rajasthan, Madhya Pradesh and Karnataka and
Railway Doubling projects in Bihar and Madhya Pradesh. Ircon is also executive
electrification distribution projects in the state of Jammu & Kashmir, and UP and
railway electrification projects in the state of UP and MP.
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FOCUS AREAS--
Railways - Track, Railway

Electrification,Workshops and
Signalling &
Telecommunication
Railways - SPV/BOT/Concession
Track & Electrification - Metro

Railways
ROBs
Road/Highways
Electrical Sub Station &

Distribution
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Greater focus on International Projects in Railway Sector

Railways Projects
Himalayas-
New BG rail link project in Kashmir
Valley-value USD 1.60 Billion.
Algeria-
A new railway line at benisef,Algeria including 70m tall viaducts value
USD87 Million.Double track
line between OUED-SLY and
YELLELL,in progress,value
USD 250 Million
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Malaysia-
Double track project between Seremban and
Gemas value USD 1.00 Billion.
Double tracking of Rawang Seremban

railway line, value USD 62 Million.
Malaysia
Rehabilitation of 327 km track from Paloh to Singapore & from Slim river to
Seremban main line.
Bangladesh
Jamuna bridge rail link-II 24km.
Mozambique
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Rehabilitation of 670km track of Sena line,value USD 68 Million.
Sri Lanka
Up gradation of colombo- Matara Coastal
Railway line.value USD 78 Million.
Metro Work
15.70 km of ballast less track for

Metropolitan Transport
Project,Chennai.
Roads & Highways
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 Expertise and know-how to undertake mega road projects of all

types in different terrains.
 Full range of plant & machinery to complete such projects within
the desired time schedule.
 Executed variety of Road projects for NHAI which include
Expressway, Highway, BOT Toll road etc. apart from a number of
World Bank & ADB funded projects in India.
Executed major road projects in India, Ethiopia, Bangladesh & Nepal
and a network of roads for its railway projects in Iraq & Algeria.
Bangladesh
Road Improvent includimg Construction
of Bridges on Dhaka-Chittagong
Highwa,Value USD 46 Million.
Nepal-
Strengthening of Belbari-
Chauharawa Road,value USD
14.41 Million.
Electrical
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• IRCON has in-house resources to undertake turnkey contracts

involving design, supply, erection and testing & commissioning of
equipment for Traction and Grid substations.
• With distinction of completing more than 60 HT sub-stations in India,

the company has also completed sub-stations in Turkey, Syria and
Bangladesh.
• The Company has to its credit the electrification of over 4500 Track
Km in India and 425 Track Km in Turkey and Indonesia.
Turkey
Railway electrification @ 25KV
AC348
Indonesia
Raiway electrification @1500 VDC-
90 TMK.
Signaling & Telecommunication
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• Experience and expertise to provide the entire range of cost effective

and safe signalling systems ranging from orthodox mechanical
signalling system to the state-of -the-art soli d state interlocking .
• Completed many prestigious projects CTC and Relay based

interlocking in IRAQ, Radio based CTC and Axle Counter Block
working in Zambia and Solid State interlocking and CTC system project
in Malaysia.
• Unparalleled expertise in the field of Telecommunication. Completed

GSM-R based train radio communication, Optical Fibre Cable based
communication for more than 5000 Kms.
Area of business
The core competence of the company in order of priority are - Railways, Highways
and EHT Substation Engineering and Construction. Ircon is a turnkey construction
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company that is specialized in railways (new railway lines,
rehabilitation/conversion of existing lines, station buildings and facilities, bridges,
tunnels, signalling and tele-communication, railway electrification, and wet leasing
of locomotives), highways, EHV sub-station (engineering, procurement and
construction) and metro rail.
LEGAL STATUS AND AUTONOMY
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The Company, a legal entity separate from the Government, is legally,

functionally, and financially autonomous, operates under the corporate laws as an
independent commercial enterprise, does not receive any budgetary or financial
support from the Government, nor is it a dependent agency of the Government.
However, the Government of India through the Ministry of Railways and the
Department of Public Enterprises under the Ministry of Heavy Industries and
Public Enterprises monitors its performance through a system of Memorandum of
Understanding (MOU) as regards targets to be achieved every year as part of
accountability to the Parliament in respect of all government companies.
Government can issue and does issue guidelines to regulate and bring about some
uniform pattern in the functioning of the Company as a public sector company.
However, no Government department has any supervisory authority to exercise
control over the Company which is managed and run under the superintendence,
control, and direction of its Board of Directors as per the Companies Act.
BUSINESS ENVIRONMENT
India is not only among the world’s fastest growing major economies, but also one
of the few economies enacting major structural reforms. Indian economy registered
a growth of 7.1% for the financial year 2016-17 in the backdrop of two major
domestic development viz. demonetization of two highest denomination notes in
November 2016, and subsequently implementation of Goods & Service Tax (GST)
in July 2017.
To make this growth rate consistent and enduring, the government continues with
its initiatives on economic reforms, increase in public investment in infrastructure
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and development projects, export growth etc. A total allocation of Rs. 3,96,135
crore for infrastructure development in 2017-18 would afford business
opportunities for your Company. The historic step of merger of the Railways
Budget with the General Budget would facilitate multi-modal transport planning
between railways, highways, and inland waterways.
VISION & MISSION

OUR VISION
To be recognized nationally and internationally as as a specialized construction
organization comparable with the best in the field covering the entire spectrum of
constructions activities and services in the infrastructure sector
OUR MISSION
 To effectively position the company so as to meet the construction needs of
infrastructure development as per the changing economic scenario in India
and abroad.
To earn global recognition by providing high quality products and services in
time and in conformity with the best engineering practices as well as good
corporate governance and customer satisfaction .
FINANCIAL PROFILE
 The operating income of the company has registered an increase of 24% from Rs.
2419 crore in 2015-16 to Rs. 2995 crore in 2016-17, though profit before tax has
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decreased by 12% from Rs. 602 to Rs. 532 crore during the corresponding period.
Indian project has contributed 90% to the total income of Rs. 3254 crore.
 IRCON has allotted bonus shares in January 2017 in the ratio of 4:1 i.e. bonus
(equity) shares for every one equity share held by the shareholders thereby
increasing the paid up capital from Rs. 19.796 crore to Rs. 98.98 crore.
Performance for the year-

Rs.in crore
2016-17 2015-16 % age

Increase/
(Decrease)
Total Income/Gross 3254 2860 13.78%

Sales
Total Operating Income 2995 2418 23.86%
Profit Before Tax 532 602 (11.63%)
Net Worth 3828 3667 4.39%
Table : 1
Operating Turnover
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Geographical Distribution
(Rs.in
crore)
Foreign Domestic
Year Amount % Amount % Total
2016-17 327 10.9% 2668 89.1% 2995

2015-16 409 16.9% 2009 83.1% 2418
2014-15 878 29.8% 2072 70.2% 2950
2013-14 2138 52.6% 1929 47.4% 4067
2012-13 1975 46.7% 2257 53.3% 4232
Table : 2
Operational Performance
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Sectoral Performance (Rs. In crore)
Sector Turnover %age
Raiways 2074 69.24
Highways 589 19.67
Buildings 78 2.61
Electricals 253 8.46
Others 1 0.02
Total 2995 100
Table : 3
Segment wise Profitability
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(Rs. In Crore)
Segment Operating Operating Profit %age#

Tornover
Domestic 2668 177 6.63
International 327 21 6.42
Total 2995 198 6.61
Table : 4
Dividend History
Financial year Amount (Rs.Cr.) % on Equity
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2016-17 192.40 194.38
2015-16 168.26 850.00
2014-15 182.12 920.00
2013-14 182.12 920.00
2012-13 148.47 750.00
Table : 5
Note:-
i. Cumulative dividend (incl.proposed) as on 31.03.2017 is
Rs.1299.91Cr.
ii. Interim dividend for 16-17 Rs. 95.15Cr.,Final diviend for 15-16
Rs.97.25Cr.
iii. Financial Highlights(Standalone)

(In Rs.Crore)
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S. Particulars 2016- 2015- 2014- 2013- 2012-

No. 17 16 15 14 13
1 Operating Income 4,06 4,23
2,995 2,418 2,950 7 2
2 Less: Company Share of - - (9 (1
Turnover in Integrated JVs 89 ) 3)
3 Add: Company Share of - - (1
Profit/(loss)in Integrated 2 ) 1
JVs
4 Net Operating Income 4,05 4,22
2,995 2,418 2,864 7 0
5 Other Income 25 44 25 25 2
9 2 8 0 51
6 Total Income 3,25 2,86 3,12 4,30 4,4
4 0 2 7 71
7 Expenditure (Incl.increase/ 2,76 2,22 2,26 3,02 3,4
decrease in stock) 6 2 7 4 12
8 Operating Margin (PBDIT) 48 63 85 1,28 1,0
8 8 4 3 59
9 Interest Expenses - - -
12 8
10 Depreciation 1 3
18 28 0 4 44
11 Exceptional items (7 - - - -
4)
12 Profit Before Tax 1,24 1,01
532 602 844 9 5
13 Profit After Tax 90 73
369 395 579 7 0
14 Dividend for the Year 19 16 18 18 1
2 8 2 2 48
15 General Reserve 3,33 3,33 3,33 2,97 2,2
4 4 4 1 77
16 Retained Earnings 39 31 - - -
0 8
17 Other Comprehensive (5 - - -
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Income 5 )
18 Foreign Project Reserve - - - - -
19 Other Reserves - - -
2 3
20 Total Reserves & Surplus 3,72 3,64 3,33 2,97 2,2
9 7 4 3 80
21 Net Fixed Assets 13 14 16 17 1
8 9 3 0 80
22 Inventories 13 14 11 11 1
9 1 4 9 25
23 Foreign Exchange Earnings 41 1,04 8
(net) 24 59 8 2 22
24 Share Capital
98.980 19.796 19.796 19.796 19.796
25 Capital Employed 3,82 3,66 3,35 2,99 2,3
8 7 4 3 00
26 Government Investments - - - - -
27 Net Worth
3,828 3,667 3,354 2,993 2,300
Profit Before Tax to Capital
28
Employed (%) 14 16 25 42 44
Operating Margin to
29
Capital Employed (%) 13 17 26 43 46
Profit After Tax to Share 3,6
30 373 1,995 2,924 4,578
Capital (%) 87
31 Expenditure to Income (%)
85 78 73 70 76
1,7
32 Number of Employees 1,496 1,499 1,472 1,579 04
2.
33 Income per Employee 2.18 1.91 2.12 2.73 62
Foreign Exchange Earning
34 0.
per Employee 0.02 0.04 0.28 0.66 48
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2.0 1.9 1.7 1.8

35 Current Ratio
2 9 2 1 1.61
-
36 Debt/Equity Ratio - - - -
2
37 Investments 1,223 743 737 494 95
BOARD OF DIRECTORS
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As on 31st March 2017, the strength of Board of Directors was nine comprising
four whole-time directors, two government nominated directors, and three
independent directors. The details are as follows:
1) Mr. S.K. Chaudhary w.e.f.

Chairman & Managing 29.10.2016
Director
2) Mr. M.K. Singh w.e.f.
Director Finance 01.05.2016
3) Mr. Deepak Sabhlok w.e.f.
Director Projects 16.04.2016
4) Mr. Hitesh Khanna w.e.f.
Director Works 07.03.2011
5) Mr. Rajiv Chaudhary w.e.f.
Part-time (Official) Director 17.11.2016
6) Mr. S.C. Jain w.e.f.
Part-time (Official) Director 03.01.2017
7) Mr. S.K. Singh w.e.f.
Independent Director 05.04.2017
8) Mr. Avineesh Matta w.e.f.
9) Prof(Ms.) Vasudha V. Kamat w.e.f.
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MR. S.K CHAUDHARY
Mr. S.K Chaudhary graduated in civil engineering form Delhi College of

engineering in the year1982 and obtained Master Degree in Management system
from Indian institute of technology, Delhi and P.G diploma in alternative Dispute
resolution from Indian institute of law he has 35 years’ experience
He started his career with IRCON and worked for about 23 years in various
capacities. He has handles national & international tendering works having funding
from World Bank, ADB bank etc., along with construction projects involving
flyovers, roads, railway line, etc.
He has extensive knowledge in the field of infrastructure projects, such as,

highways, railways, airports, flyovers and bridges etc. as well as experience in
international market and finance appraisal and feasibility study etc.
Recently, he has been awarded “Distinguished alumni” from DCE-DTU alumni

association of Delhi College of engineering in the year 2017.
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SH. M.K SINGH

Mr. M.K Singh has joined the board of IRCON as director finance i.e. 1 st may 2016
in terms of presidential order dared 26 th April 2016 issued by the ministry of
railways.
Born on 25th September 1961, Mr. Singh’s academic qualification BA. (Hones.).
MA. (Mathematics), M.Phil. (mathematics), and post graduate diploma in financial
management form IGNOU. He is an Indian railway accounts service (IRAS)
officer of 1990 Batch. Prior to joining Indian railways he worked as a lecturer of
mathematics in the University of Delhi.
He has gained rich experience in various branches of railway accounts and finance
including exposures of working in multi-department set up of Indian railways. He
has worked in the area of financial matters of construction issues of rail
infrastructure pertaining to SPVs, financials of railway projects and appraisal of
PPP projects in Indian railways, compilation and preparation of accounts package
system and other relation database management system packages of accounting
and finance in zonal headquarters and divisions in the railway finance and accounts
in two major decisions.
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He has undergone training on public private partnership mode of project finance

form IIM Ahmedabad, freight business marketing course from railway Staff
College, management development program in Canada from Rottman School of
management, university of Toronto, Canada. He has also received various awards
like minister of railway award (in 1998), general manager award (2004) etc.
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SH. DEEPAK SABHLOK
Mr. Deepak Sabhlok in an officer of 1982 Batch of Indian railways service of

engineers. He is graduate in civil engineering from national institute of technology
(NIT), Bhopal (Gold medalist).
He has held various responsible positions in many capacities on northern railway,

north central railway, north western railway and south eastern railway. In his
career, spanning over 29 years, he worked on important projects including
prestige’s rail coach factory, kapurthala during its construction phase, chief
engineer track machines on south eastern railway.
He was in charge of maintenance of civil engineering assets and coordination of

various divisional activities of Allahabad division of NC railway for over 5 yeats.
He has published technically papers on Bridge Rehabilitation technique he has
worked on deputation with IRCON for over 5 years as GM/Business development
and GM/works.
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MR. RAJIV CHAUDHARY
Rajiv Chaudhary aged 57 years, is a government nominee (part- time official)

director of our company. He holds a bachelor’s degree in civil engineering from
Indian institute of technology. Roorkee (formally known as university of Roorkee).
He is an officer of the Indian railway service of engineers.
He is posted as principle executive director (station development) railway board,

ministry of railways and is also on the board of konkan Railway Corporation
limited as government nominee director (part-time official). He is experienced in
various fields of the railway sector particularly rail transport, operation,
maintenance, planning, designing and executive of large civil engineering projects.
He has been on the board of our company since November 17, 2016
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SH. VED PAL
Ved pal, aged 59 years, is the government nominee (Part-time officially). Director
of our company. He holds a bachelor’s degree and a master’s degree in electrical
engineering from university of Roorkee.
He also holds a bachelor’s degree in law from barkatullah vishwavidhalaya,

Bhopal and is an officer of Indian railway service of electrical engineers. Presently,
he is posted as an additional member (planning), railway board, ministry of railway
and is experienced in the railway sector particularly in preparation of annual
reports, budgets and feasibility report for projects of various railway zones,
planning and monitoring safety works, port connectivity and coal connectivity
projects, planning of infrastructure for long term planning, maintenance of electric
locomotives, production and technology. He has been on the board of our company
since November 22, 2017.
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SH. AVINEESH MATTA
Avinesh matta 58 years, is an independent (part-time non - official), director of our

company. He holds a bachelor’s degree in commerce (honors) and bachelor’s
degree in law from university of Delhi. He also holds an advanced diploma in
management from Indira Gandhi national Open University. He is a fellow member
of the institute of Charted accountants of India (ICAI) and has completed courses
in information systems audit and valuation from ICAI. He is registered as an
insolvency and bankruptcy board of India.
He is experienced in finance, audit and taxation with service segments. He also

provides consultancy on engineering procurement-construction, operate-maintain-
transfer, build-operate transfer and similar projects in road transport and highway
sector. He is currently a partner at AVA & Associates, Chartered Accountants. He
has been on the board of our company since April 8, 2016
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PROF (MS.) VASHUDHA V. KAMAT

Vashudha vasant kamat, aged 65 years, is an independent (Part –time non official)
director of our company. She holds a bachelor’s degree in science (Chemistry)
from university of Poona and a master’s degree in arts (sociology) from shreemati
Nathibai Damodar Thackersy (S.N.D.T) women’s university, Bombay. She is also
holds a bachelor’s degree and a master’s degree in education from university of
Bombay.
She is experienced in the education sector and is associated with various foreign
universities for the fellowship programmers and in the capacities of visiting
scholar. In the past, she has held the post of joint director at the central institute of
educational technology a constituent unit of National Council of educational
research and training and vice- chancellor of S.N.D.T women’s university thereby
retiring from the post in 2016.
She is also a part of the committee constitute for preparation of the draft national
education policy. She has been on the board of our Company since April 22, 2016
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DR. C.B. VANKATARAMANA
Chitta Balasatya Venkataramana, aged 62 years, is an independent (Part-time non-

official) Director of our company. He holds a master’s degree in commerce from
Sri Venkateswara University, master’s degree in arts (economics) from University
of madras and a master’s degree in health science of Hygiene and public Health,
Baltimore, MD, USA and is a retired office of the Indian administration services.
He has experienced in the public services sector and has been on the board of our
Company since September 28, 2017.
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DR. NARENDRE SINGH RAINA

Narender Singh Raina, aged 51 years, is an independent (part –time Non-official)
Director of our company. He holds bachelor’s degree and a master’s degree in
science (forestry) from Dr. Yashwant Singh Parmar University of Horticulture and
forestry. He also holds a degree of doctor of Philosophy (Forestry) from Dr.
Yashwant Singh Parmer University of horticulture and forestry. Prior to joining
our Company,
he was posted as the range officer grade 1, Jammu and Kashmir, Department of
forest and then as the assistant professor agroforestry with Sheer-e-Kashmir
University of agricultural Science and technology of Jammu.
He is experienced in education sector and is presently working as an associate

professor with Sheer-e-Kashmir University of Agricultural Sciences and
technology of Jammu. He has been on the board of our Company since October 17,
2017.
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SH. ASHOK KUMAR GANJU
Sh. Ashok Kumar Ganju, aged 65 years, is an independent (part –time Non-
Official). Director of our Company. He holds a bachelor’s degree in science (civil
engineering) from University of Delhi and a master’s degree in technology (Water
resources) form Indian institute of technology, Delhi. He also holds a post graduate
diploma in Hydraulics from IHE Delft institute for water education, Netherlands.
Presently, he is providing consultancy on water resources development projects to
PSUs.
He was ex-officio additional secretory to the government of India and retired as a

member, design and research, central water commission in 2012. He was the
chairman of Ganga Flood Control Commission, Patna from May 2010 to august
2011. He has experienced in the planning and designing of water resources
development, Flood management, hydro and thermal projects, dam safety
inspections, resolution of disputes between the project authorities and contractors
and advising on construction related problems. He has been on the board of our
company since March 08. 2018
OPERATIOAL PROFILE
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During 2016-17, IRCON has completed four projects, two in India and one each in
Bhutan and Bangladesh. Ircon is having pan India presence through more than 24
projects across various states of India. In addition, the company executing projects
in Bangladesh, Algeria, and South Africa.
The product mix of IRCON is varied and includes signaling projects, electrical
sub-stations, and road over bridges, buildings, road projects from NHAI, apart
from railway projects of track laying, up gradation, doubling, railway sidings, coal
connectivity projects, redevelopment of stations, etc.
The mode of execution of some of these projects is EPC whereas road projects
from NHAI are being executed through wholly owned subsidiary companies
(WOS) formed for this purpose, and coal connectivity projects are being executed
through joint venture companies formed as a strategic alliance with other PSUs,
Ircon’s equity stake in such JVs being 26%.
PERSONNEL DEVELOPMENT
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Cordial and harmonious industrial relations prevailed in the Company

during the year. The total manpower strength as on 31 March 2017 stood at
1495, which included 1183 regular employees, 47 deputationists, and 265
employees on contract (including service contract). 1004 employees of the
Company were technically and professionally qualified. The total number of
women employees was 68. There were a total of 241 scheduled caste /
scheduled tribe employees as on 31st March 2017.
IRCON has been continuously taking steps for building capacity of its
human resource through training in functional and general management
areas, contract & arbitration, leadership, information technology, as well as
soft skills. External faculty is arranged wherever required and officials are
nominated for workshops, seminars, etc. with reputed institutes. During the
year 2016-17, a total 912 man-days training was imparted to officials of
Ircon through workshops, seminars, conferences, in-house trainings and
training in external institutes, etc.
Ircon has various schemes for staff welfare like educational scholarships,
one-time educational grant for admission to professional degrees and
diploma courses, educational awards to meritorious children of employees,
educational assistance to the wards of deceased employees, assistance for
marriage of daughters and dependent sisters of group ‘C’ and ‘D’
employees, etc. An award was introduced for meritorious wards of Ircon

employees who secured gold medal in professional courses. In addition to
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facility of homeopathy and allopathic treatment at corporate office, yoga

classes are also conducted for overall well-being of the employees. Other
facilities like immediate financial assistance and guidance are being
provided to employees and their family members in case of any medical
exigency, lump sum exgratia payment to family members in case of death of
serving employee.
IRCON aims to provide congenial and safe working atmosphere to women

employees. The Company has a complaints committee for prevention of
sexual harassment at work place. Further, provision pertaining to prohibition
of sexual harassment has also been incorporated in Ircon Conduct,
Disciplinary, and Appeal Rules. No complaints relating to sexual harassment
has been received by the Company during the year. The Company, on
International Women’s day, arranged one workshop during the year,
exclusively for women employees for creating awareness on health related
issues. Inter-project Quiz programs and Debate competition were conducted
for the employees of Ircon. Winning team and the runners up were awarded
cash prize and certificate of commendation.
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QUALITY, ENVIRONMENT, AND HEALTH & SAFETY

MANAGEMENT
Quality Management System (QMS) has been successfully sustained and

continually improved since 1996 when the Company as a whole was first
certified for ISO-9002-1994 by TUV Suddeutschland Private Limited
(TUV). Your Company has continued the certification and sustained the
system as per latest revised code ISO 9001:2015 (by periodical re-
certification audit after expiry of every three years). Latest re-certification
audit has been conducted in March 2017, whereby the Company has been re-
certified by TUV for a period of another three years i.e. up to June 2020.
During the year, the Company has started working on development of

mobile phone / web based video library, and for this purpose two topics have
been identified viz. Construction of Embankment (Mechanized) in 3D
format and Personal Safety & safety in construction in 2D format. The
mobile / internet based application on personal safety and safety in
construction has been released and is available on Ircon’s internal website.
Environmental friendly equipment such as solar panels has been installed

and are being installed at various offices / projects. Waste water is recycled
at Corporate Office through Sewage Treatment Plant (STP), and the same is
used for horticulture work. STPs are also being constructed at Noida,
Gurgaon, and MFC buildings. LED lights, sensor lights and sensor taps are
being used in Corporate Office to conserve electricity and water. Various
environment friendly steps like use of fly ash brick instead of clay brick, rain
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water harvesting arrangements, sensor controlled Chromium Plate (CP)

fittings, use of latest version of facade glass (glass in building) to make the
building sustainable etc. are being taken up across various offices / projects
of the Company. Monitoring of water usage and waste water, ambient air
quality and noise quality is also being carried out at various construction
sites. The Company is emphasizing on providing clean environment by
initiating indoor air quality monitoring in the Corporate Office building.
Tree plantation is also undertaken by corporate office and project offices.
TECHNOLOGY ABSORPTION AND UPGRADATION
Supervisory Control and Data Acquisition System (SCADA) for energy

management have been made operational at Rail Coach Factory, Rae Bareli.
Further, the Company has constructed all sub-station buildings in DMRC with
latest energy efficient and environmental friendly guidelines which includes LED
lights, Rain Water harvesting.
For the first time in Indian Railways, Overhead Equipment (OHE) design for
Railway Electrification Project is being carried out by using Drone camera for
picking the coordinates and Geographical Information System (GIS). The OHE
layout plans are then prepared with the help of Autocad. Ircon has also planned for
use of Drone Camera for Katni Singrauli Doubling project.
A concept paper on adoption of Semi High Speed on existing routes was presented
in IPWE Seminary in January 2017.
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RESEARCH AND DEVELOPMENT
IRCON does not undertake any pure research project but takes the help of
consultants and firms to innovate and to develop methods and techniques to
execute projects in a cost effective manner, with requisite quality, to enhance the
technological competence and efficiency.
INFORMATION TECHNOLOGY AND DEVELOPMENT OF

ERP
With an objective to enable IT facility in all domain, efforts were directed towards
enhancement of SAP ECC 6.0 based Finance-Controlling module to incorporate
additional functionalities like fixed asset accounting for calculation of depreciation
as per Indian Income Tax Act, Bank Reconciliation System, FOREX reporting in
Functional currency, local currency and reporting currency, Implementation of
IndAS functionality (age analysis and discounting of Financial Asset and liability),
reports for quarterly and annual financial statements as per schedule III of the
Companies Act, 2013; implementation of E-recruitment system on SAAS model
with functionalities like on-line submission of application with payment gateway,
generation of admit card and communication through SMS / e-mail with the
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applicants, conducting online written test, instant publication of results; installation

of video conferencing system for conducting review meetings with Project Heads,
training, promotion interviews etc.; hiring data centre services for SAP ERP
application to gain enhanced efficiency, security, and flexibility for capacity

augmentation; revamping company’s responsive internet website etc.
To reduce paper usage and transparent working, use of IT has been enhanced in all
the functional domains.
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AWARDS
IRCON had received following awards during the year 2016-17:
India Pride Awards 2015-16 instituted by Dainik Bhaskar for ‘Excellence in Public
Sector Undertaking – Central in CSR/Environment Protection and Conservation’.
The award was presented by Mr. Venkaiah Naidu, Honable Union Minister for
Urban Development to Mr. Mohan Tiwari, former Chairman & Managing
Director, Ircon, at a function held in New Delhi on 4th April 2016.
Dun & Bradstreet Infra Awards 2016, in the category of “Best Infrastructure
Project: Setting up of Rail Coach Factory, Rae Bareli at Lalganj (U.P.) Phase-I
Project”. The award was presented by Mr. Mansukh L. Mandaviya, Hon’ble
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Minister of State for Transport & Highways to Mr. M.K. Singh, Director Finance,
Ircon, at a function held in New Delhi on 8th November 2016.
Governance Now 4th PSU Awards 2016 in the category of “HR Initiative
(Miniratna I)”. The award was presented by Mr. Ram Villas Paswan, Hon’ble
Union Minister for Consumer Affairs, Food and Public Distribution, to Ms.
Anupam Ban, General Manager/HRM, Ircon, at a function held in New Delhi on
23rd December 2016.
CIDC Vishwakarma Award 2017 from Construction Industry Development

Council (CIDC) in the category of Best Construction Project for Railways Coach
Factory, Rae Bareli. The award was presented to Mr. S.K. Chaudhary Chairman &
Managing Director; Mr. Deepak Sabhlok, Director Projects; Mr. Dwarika Prasad,
Executive Director (Rae Bareli);, and Mr. A.K. Goyal, Executive Director
(Projects); at a function held in New Delhi on 7th March 2017.
As per Dun & Bradstreet India’s Top PSUs 2016 Certificate released on 22nd
August 2016, Ircon ranks 93 on the basis of Total Income.
From Engineering Export Promotion Council, the company has won 18 Awards of
Excellence, including the All India Trophy for the Top Exporters in the category of
Merchant Exporters in recognition of the outstanding contribution to engineering
exports.
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SUBSIDIRIES AND JOINT VENTURE COMPANY
Subsidiaries companies
1. IRCON INFRASTRUCTURE & SERVICES LIMITED (IRCONISL)
IrconISL, a wholly owned subsidiary of Ircon, was incorporated on 30th

September 2009 and obtained a Certificate of Commencement of Business on
10th November 2009. The main object of IrconISL is to undertake infrastructure
projects including planning, designing, development, improvement etc. in the field
of construction of Multi-Functional Complexes (MFCs), etc., to provide facilities
and amenities to users of Indian Railway System, and to carry on the business of
hire purchasing, leasing of all kinds of moveable and immoveable properties, to
provide consultancy for all kinds of engineering projects including providing
maintenance, support, and all kinds of services including social welfare measures,
etc. During the year 2016-17, IrconISL has executed consultancy project of
Ministry of External Affairs (MEA) for preparation of feasibility report and
Detailed Project Report (DPR) for Bridge Project in Myanmar, and preparation of
DPR for road project in Rakhine state.
During the year, IrconISL had achieved an operating income of Rs. 40.98 crore,
and earned profit before tax of Rs. 20.81 crore and profit after tax of Rs. 12.36
crore.
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2. INDIAN RAILWAY STATIONS DEVELOPMENT

CORPORATION LIMITED (IRSDC)
IRSDC, a subsidiary company of Ircon and JV Company with Rail Land

Development Authority (RLDA), was incorporated on 12th April 2012 and
obtained a Certificate of Commencement of Business on 9th May 2012. The main
objects of IRSDC is to develop / re-develop the existing / new railway station(s)
which will consist of upgrading the level of passenger amenities by new
constructions/ renovations including re-development of the station buildings,
platform surfaces, circulating area, etc., to better standards so as to serve the need
of the passengers in India, and commercial development of land/ air space. The
equity participation of Ircon and RLDA in IRSDC is in the ratio of 51:49
respectively.
IRSDC has been entrusted with development of 13 stations located at Chandigarh,

Habibganj (Bhopal), Shivaji Nagar (Pune), Bijwasan (New Delhi), Anand Vihar
(Delhi), Surat and Gandhinagar (Gujarat), and SAS Nagar (Mohali) Punjab,
Gandhinagar (Jaipur), Amritsar, Gwalior, Nagpur and Baiyappanhalli (Benguluru)
for development/re-development. The status of re-development of railway station
by IRSDC is as follows:
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Chandigarh Railway Station - proposal sent to Railway Board for taking up re-
development work on EPC mode, decision awaited;
(ii) Habibganj Railway Station - contract for redevelopment of this station has
been awarded, wherein the station will be modernized through commercial
development of land and maintained through retail and advertising revenues,
physical work has started;
Shivajinagar Railway Station - development is under approval by Pune Municipal
Corporation;
Bijwasan and Anand Vihar Railway Station - bidding process is in advance stage;
(v) Surat Railway Station - planned to be re-developed as a Multi Modal
Transportation Hub through a Joint Venture Company and pooling of land by the
Central, State, and Local Government;
Gandhinagar Railway Station - work taken up through a JV company between

IRSDC (MoR) and Gujarat Industrial Development Board (GIDB) (GoG) on EPC
mode;
SAS Nagar Mohali Railway Station - found to be unviable and has been proposed
for de-entrustment.
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3. IRCON PB TOLL-WAY LIMITED (IRCONPBTL)
IrconPBTL, a wholly owned subsidiary of Ircon, was incorporated as a Special

Purpose Vehicle on 30th September 2014, and has obtained approval for,
commencement of business on 14thNovember 2014. The main object of
IrconPBTL is to carry on the business of widening and strengthening of the
existing Bikaner & Phalodi Section to four lane from 4.200 km to 55.250 km and
Two Lane with paved shoulder from 55.250 km to 163.500 km of NH-15 on
Build, Operate, and Transfer (BOT) (Toll) basis in the State of Rajasthan, in
accordance with the terms of the Concession Agreement signed with National
Highways Authority of India (NHAI) on 7th November 2014.
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Joint venture companies
1. IRCON-SOMA TOLL WAY PRIVATE LIMITED (ISTPL)
A joint venture company called ‘Ircon-Soma Toll way Private

Limited’ (ISTPL) was 1incorporated on 19th April 2005, with 50% equity
participation by both Ircon and Soma Enterprise Limited (a construction company
in private sector), for executing a BOT project for four laning of Pimpalgaon-
Dhule section of NH-3 from km 380 to km 265 in Maharashtra for NHAI. The
BOT project for four laning of Pimpalgaon-Dhule section got completed in 2010-
11 and accordingly, ISTPL is earning toll on the entire stretch of 118.158 km.
Financials of ISTPL: The authorized share capital of ISTPL is Rs. 130 crore and
its subscribed and paid-up share capital is Rs. 127.74 crore (Ircon’s share being
Rs. 63.87 crore) as on 31stMarch 2017. During the year, ISTPL has achieved
operating turnover of Rs. 153.34 crore as compared to Rs. 157.23 crore achieved
during the previous year, and earned profit after tax of Rs. 11.69 crore against
profit of Rs. 5.91 crore incurred during the previous year.
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2. CHHATTISGARH EAST RAILWAY LIMITED (CERL)
A joint venture company called ‘Chhattisgarh East the Railway Limited’ (CERL)
was incorporated on 12thMarch 2013, with equity participation by South Eastern
Coalfields Limited, Ircon, and Chhattisgarh State Industrial Development
Corporation Limited (nominee of Government of Chhattisgarh) in the ratio of
64:26:10 respectively, for development of coal connectivity corridor i.e. East
Corridor (length 180 Km) in the State of Chhattisgarh. CERL had obtained the
Certificate for Commencement of Business on 7thMay 2013.
The CERL has signed concession agreement on 12thJune 2015 with Ministry of
Railways, for Chhattisgarh East Railway Corridor - Phase I in the State of
Chhattisgarh (Total 104.157 km). Phase I of the project is being implemented for
Build, Own, Operate, and Transfer (BOOT) model for PPP projects. Detailed
Project rd Report (DPR) has been approved on 3rd May 2016 by Zonal Railways
viz. South Eastern Central Railway with inflated mileage proposed by the
Ministry of Railways.
Financial closure is in progress and likely to be completed by 30thSeptember

2017. The project progress is infringing due to stay by National Green Tribunal
(NGT) payment of compensation on account of Rehabilitation and Resettlement to
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land holders. So far only 67% disbursement has been completed by State Revenue
officials and balance as committed by State Government would be completed by
August 2017.
FINANCIALS OF CERL:
The authorized share capital of CERL is Rs. 400 crore and its subscribed and
paid-up share capital.
MAHANADI COAL RAILWAY LIMITED (MCRL)
A joint venture company called ‘Mahanadi l is Rs. 306 crores (Ircon’s share being
Rs. 139.06 crore) as on 31stMarch 2017. CERL is yet to start commercial
operations.
Coal Railway Limited’ (MCRL) was incorporated on 31stAugust 2015, with

equity participation by Mahanadi Coalfields Limited, Ircon, and Odisha Industrial
Infrastructure Development Corporation (nominee of Govt. of Odisha) in the ratio
of 64:26:10 respectively, with the main object to build, construct, operate, and
maintain identified rail corridor projects that are critical for evacuation of coal
from mines in the State of Odisha. MCRL has signed project execution agreement
with Ircon on 19thApril 2016. Angul-Balram-Jharpada new rail corridor has been
identified by the Company for implementation. Feasibility Report has been
submitted to East Coast Railway (ECoR) on 8th August 2016 and DPR has been
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submitted to ECoR on 18th July 2017 and forwarded to Railway Board on 20th
July 2017 for approval. Land acquisition process is in progress.
JHARKHAND CENTRAL RAILWAY LIMITED (JCRL)
A joint venture company called ‘Jharkhand Central Railway Limited’

(JCRL) was incorporated on 31st August 2015, with equity participation by
Central Coalfields Limited, Ircon, and Govt. of Jharkhand in the ratio of
64:26:10 respectively, with the main object to build, construct, operate, and
maintain identified rail corridor projects that are critical for evacuation of
coal from mines, in the State of Jharkhand.
JCRL had signed project execution agreement with Ircon on 28th March
2016. Railway Board on 6th April 2016 has granted in-principle approval for
project transferring Broad Gauge Single Railway Line connecting Shivpur to
Kathautia from km 41.5 to km 90.7 in the State of Jharkhand, having a total
route length of 49.2 km and track length of 68.7 km to JCRL. The
construction of the project is expected to be started by March 2018 at an
estimated cost of Rs. 1400 crore. Orders for acquisition of private and
Government land acquisition have been issued and environmental clearances
are under process. Feasibility / initial viability estimation and Detailed
Project Report (DPR) are in the process of finalization.
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FINANCIALS OF JCRL:
The authorized share capital of JCRL is Rs. 100 crore and its subscribed and paid-
up share capital is Rs. 50 crore as on 31st March 2017.
FINANCIALS OF MCRL:
The authorized, subscribed, and paid-up share capital of MCRL is Rs. 5 lakhs as on
31st March 2017.
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CHAPTER– 3
INTRODUCTION OF TAXATION
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Taxation
The term “Taxation” comes from the Latin word “Taxatio”. It means to determine
the payable quantum on estimate. According to Justice Holmes “The price paid to
the government for living in a civilized society is the tax. According to Taylor
“taxes are the compulsory payments to government without expectation of direct
benefit to the tax payer.
Taxation is a system of raising money to finance government. All governments

require payments of money-taxes-from people. Governments use tax revenues to
pay soldiers and policy, to build dams and roads, to operate schools and hospitals,
to provide food to the poor and medical care to the elderly, and for hundreds of
other purposes. Without taxes to fund its activities, government could not exist.
Taxation is the most important sources of revenue for modern governments,

typically accounting for 90 percent or more of their income.
Taxation is a major instrument for the conduct of public policy. This is true
for both developed and developing countries . Taxation is known to
accomplish a number of objectives revenue generation for government,
economic stabilization and income re-distribution. Taxation as an instrument of
public policy is essentially concerned with the manipulation of financial operation
of both the government anti private sectors with a view of furthering certain
economic objectives.
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CHARACTERISTICS OF TAX
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Direct Tax payment has age limit
Tax is a compulsory levy that must be paid

by an individual or corporate body
It is levied by the government or its

agencies
Tax is made for the general welfare of the

public.
Figure-2
PRINCIPLES OF A TAXATION
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Certainity
Perdictability Equity
Simplicity Neutrality
Principles
Efficiency Adequacy
Convenince Broad Basing
Compatibility
Figure-3
 Principle of certainty: This principle states that the tax should be certain
and clear to everybody concerned; the amount to be paid and the manner of
payment should also be clear and plain to the tax payer.
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 Principle of equity: This principle states that tax should be paid based on
your abilities, it should be paid without causing undue hardship to the payers.
 Principle of neutrality: this principle says that a good tax system should
not in any way interfere unnecessarily with the supply and demand for goods
and service. It studies the effect people’s ability to save, produce and their
willingness to work.
 Adequacy: taxes should be just-enough to generate revenue required for

provision of essential public services.
 Broad Basing: taxes should be spread over as wide as possible section of the
population, or sectors of economy to minimize the individual tax burden.
 Compatibility: taxes should be coordinated to ensure tax neutrality and

overall objectives of good governance.
 Convenience: taxes should be enforced in a manner that facilitates a

way to the maximum extent possible.
 Efficiency: tax collection efforts should not cost an inordinately high
percentage of tax revenues.
 Simplicity: tax assessment and determination should be easy to
understand by an average taxpayer.
 Predictability: collection of taxes should reinforce their
inevitability and regularity.
TAXES APPLICABLE IN INDIA
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Direct Tax
Indirect Tax
Figure-4
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DIRECT TAX
Direct taxes are directly imposed on the tax payer. They depend on the income and
wealth of an individual or entity.
DIRECT TAX IN INDIA
INCOME
TAX
This is one of the most well-known and least understood taxes. It is the tax that is
levied on your earning in a financial year. There are many facets to income tax,
such as the tax slabs, taxable income, tax deducted at source (TDS), reduction of
taxable income, etc. The tax is applicable to both individuals and companies. For
individuals, the tax that they have to pay depends on which tax bracket they fall in.
This bracket or slab determines the tax to be paid based on the annual income of
the assesse and ranges from no tax to 30% tax for the high income groups.
The government has fixed different taxes slabs for varied groups of individuals,
namely general taxpayers, senior citizens (people aged between 60 to 80, and very
senior citizens (people aged above 80).
In the Union Budget 2018, a standard deduction of Rs.40000 has been introduced
for salaried-employees for transport allowances and medical expense
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reimbursement. This proposal will benefit about 2.5 crore salaried employees and
pensioners while costing Rs.8000 crore to the government.
To ease tax burden for senior citizens, there is an exemption of interest income of
up to Rs.50000 on Fixed Deposits, Recurring Deposits, and Post Office. There is
also a rise in limit for tax deduction on health insurance premium from Rs.30,000
to Rs.50,000 under Section 80D. There is no TDS required under Section 194A.
Income tax slab for individual tax payers & HUF (less than 60 years old) (both
men & women)
Income Tax Slab Tax Rates

Income up to Rs.2,50,000 No Tax
Income from Rs.2,50,000-Rs.5,00,000 5%
Income from Rs.5,00,000-10,00,000 20%
Income more than Rs.10,00,000 30%
Surcharges: 10% of income tax,where total income is between Rs.50
Lakh and Rs.1 crore.15% of income tax , where total income exceeds
Rs.1crore.
Cess:3% on total of income tax + surcharge.
*Income upto Rs.2,50,000 is exempt from tax if you are less than 60
Years old.
Table-6
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INDIRECT TAX
Indirect taxes are those taxes that are levied on goods or services. They differ from
direct taxes because they are not levied on a person who pays them directly to the
government, they are instead levied on products and are collected by an
intermediary, the person selling the product. The most common examples of
indirect tax Indirect tax can be VAT (Value Added Tax), Taxes on Imported
Goods, Sales Tax, etc. These taxes are levied by adding them to the price of the
service or product which tends to push the cost of the product up.
TYPES OF INDIRECT TAX
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Value
Securities Added
Custom
Service
Exice TaxTax
Transaction
duty
Duty Tax (STT)
Figure-5
CUSTOMS DUTY: Customs Duty is a type of Indirect Tax which is levied on

goods which are imported into India. In some cases, it is also levied when the
goods are exported from India.
SERVICE TAX IN INDIA: Service Tax is a tax which is levied on the

Services provided by an entity. If an entity is providing any service, they are
required to levy Service Tax on the same. This service tax is collected from the
recipient of service and deposited with the Central Govt.
VALUE ADDED TAX: VAT stands for Value Added Tax and is levied on the
sale of movable goods in India. VAT is a multi-point destination based system of
taxation, with tax being levied on value addition at each stage of transaction in the
production/ distribution chain. The term ‘value addition’ implies the increase in
value of goods and services at each stage of production or transfer of goods. VAT
is a tax on the final consumption of goods or services and is ultimately borne by
the consumer.
EXCISE DUTY: Excise Duty is an indirect tax levied on those goods which are
manufactured in India. The taxable event in this case is manufacture and the
liability of central excise duty arises as soon as the goods are manufactured. It is a
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tax on manufacturing which is paid by the manufacturer, who passes its incidence
on to other customers and recovers the same from them.
SERVICE TAX: Service tax is applied generally at the rate of 12.36%, which
has been revised to 14% from April 2015. This type of indirect tax is levied by the
service tax provider and paid by the recipient of the services. However, in some
cases the liability for the tax is divided between the recipient as well as the
provider of service.
Securities Transaction Tax (STT):

This indirect tax is imposed when stocks are sold or purchased through any
Indian stock exchange. STT was introduced in 2004 and is applicable to shares,
mutual funds, and future and options transactions. STT was imposed to reduce
the short-term capital gains tax and eliminate long-term capital gains tax.
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CHAPTER– 4
ABOUT THE GOODS AND
SERVICE TAX.
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Introduction to Goods and Services Tax (GST)

About GST:
The Good and services tax (GST) is the biggest and substantial indirect tax reform
since 1947. The main idea of GST is to replace existing taxes like value-added tax,
excise duty, service tax and sales tax. GST as it is known is all set to be a game
changer for the Indian economy. India as world’s one of the biggest democratic
country follow the federal tax system for levy and collection of various taxes.
Different types of indirect taxes are levied and collected at different point in the
supply chain. The center and the states are empowered to levy respective taxes as
per the Constitution of India. The Value Added Tax (VAT) when introduced was
considered to be a major improvement over the pre-existing Central excise duty at
the national level and the sales tax system at the State level. Now the Goods and
Services Tax (GST) will be a further significant breakthrough - the next logical
step - towards a comprehensive indirect tax reform in the country.
Several countries have already established the Goods and Services Tax. In
Australia, the system was introduced in 2000 to replace the Federal Wholesale
Tax. GST was implemented in New Zealand in 1986. A hidden Manufacturer’s
Sales Tax was replaced by GST in Canada, in the year 1991. In Singapore, GST
was implemented in 1994. GST is a value-added tax in Malaysia that came into
effect in 2015.
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History of GST in India
 2000: In India, the idea of adopting GST was first suggested by the Atal
Bihari Vajpayee Government in 2000. The state finance ministers formed an
Empowered Committee (EC) to create a structure for GST, based on their
experience in designing State VAT. Representatives from the Centre and states
were requested to examine various aspects of the GST proposal and create
reports on the thresholds, exemptions, taxation of inter-state supplies, and
taxation of services. The committee was headed by Asim Dasgupta, the finance
minister of West Bengal. Dasgupta chaired the committee till 2011.
 2004: A task force that was headed by Vijay L. Kelkar the advisor to the
finance ministry, indicated that the existing tax structure had many issues that
would be mitigated by the GST system.
 February 2005: The finance minister, P. Chidambaram, said that the
medium-to-long term goal of the government was to implement a uniform GST
structure across the country, covering the whole production-distribution chain.
This was discussed in the budget session for the financial year 2005-06.
 February 2006: The finance minister set 1 April 2010 as the GST
introduction date.
 November 2006: Parthasarthy Shome, the advisor to P. Chidambaram,
mentioned that states will have to prepare and make reforms for the upcoming
GST regime.
 February 2007: The 1 April 2010 deadline for GST implementation was
retained in the union budget for 2007-08.
 February 2008: At the union budget session for 2008-09, the finance
minister confirmed that considerable progress was being made in the preparation
of the roadmap for GST. The targeted timeline for the implementation was
confirmed to be 1 April 2010.
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 July 2009: Pranab Mukherjee, the new finance minister of India, announced
the basic skeleton of the GST system. The 1 April 2010 deadline was being
followed then as well.
 November 2009: The EC that was headed by Asim Dasgupta put forth the
First Discussion Paper (FDP), describing the proposed GST regime. The paper
was expected to start a debate that would generate further inputs from
stakeholders.
 February 2010: The government introduced the mission-mode project that
laid the foundation for GST. This project, with a budgetary outlay of Rs.1,133
crore, computerized commercial taxes in states. Following this, the
implementation of GST was pushed by one year.
 March 2011: The government led by the Congress party puts forth the
Constitution (115th Amendment) Bill for the introduction of GST. Following
protest by the opposition party, the Bill was sent to a standing committee for a
detailed examination.
 June 2012: The standing committee starts discussion on the Bill. Opposition
parties raise concerns over the 279B clause that offers additional powers to the
Centre over the GST dispute authority.
 November 2012: P. Chidambaram and the finance ministers of states hold
meetings and set the deadline for resolution of issues as 31 December 2012.
 February 2013: The finance minister, during the budget session, announces
that the government will provide Rs.9,000 crore as compensation to states. He
also appeals to the state finance ministers to work in association with the
government for the implementation of the indirect tax reform.
 August 2013: The report created by the standing committee is submitted to
the parliament. The panel approves the regulation with few amendments to the
provisions for the tax structure and the mechanism of resolution.
 October 2013: The state of Gujarat opposes the Bill, as it would have to
bear a loss of Rs.14,000 crore per annum, owing to the destination-based
taxation rule.
 May 2014: The Constitution Amendment Bill lapses. This is the same year
that Narendra Modi was voted into power at the Centre.
 December 2014: India’s new finance minister, Arun Jaitley, submits the
Constitution (122nd Amendment) Bill, 2014 in the parliament. The opposition
demanded that the Bill be sent for discussion to the standing committee.
 February 2015: Jaitley, in his budget speech, indicated that the government
is looking to implement the GST system by 1 April 2016.
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 May 2015: The Lok Sabha passes the Constitution Amendment Bill. Jaitley
also announced that petroleum would be kept out of the ambit of GST for the
time being.
 August 2015: The Bill is not passed in the Rajya Sabha. Jaitley mentions
that the disruption had no specific cause.
 March 2016: Jaitley says that he is in agreement with the Congress’s

demand for the GST rate not to be set above 18%. But he is not inclined to fix
the rate at 18%.
In the future if the Government, in an unforeseen emergency, is required to raise

the tax rate, it would have to take the permission of the parliament. So, a fixed rate
of tax is ruled out.
 June 2016: The Ministry of Finance releases the draft model law on GST to
the public, expecting suggestions and views.
 August 2016: The Congress-led opposition finally agrees to the
Government’s proposal on the four broad amendments to the Bill. The Bill was
passed in the Rajya Sabha.
 September 2016: The Honorable President of India gives his consent for the
Constitution Amendment Bill to become an Act.
 2017: Four Bills related to GST become Act, following approval in the
parliament and the President’s assent:
o Central GST Bill
o Integrated GST Bill
o Union Territory GST Bill
o GST (Compensation to States) Bill.
Goods and Services Tax (GST) is an indirect tax which was launched at midnight
on 1 July 2017 by the President of India, Pranab Mukherjee and Prime Minister of
India, Narendra Modi. The launch was marked by a historic midnight (30 June-1
July) session of both houses of the Parliament convened at the Central Hall of the
Parliament. GST is applicable throughout India which will replace 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 Act Bill.
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Key features of GST

Dual Goods and Service Tax
Destination-Based Consumption
Computation of GST on the basis of invoice credit method
Payment of GST
Goods and Services Tax Network (GSTN)
GST on Imports
Maintenance of Records
Administration of GST
Goods and Service Tax Council
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Figure-6
1. Dual Goods and Service Tax: CGST and SGST
2. Destination-Based Consumption Tax: GST will be a destination-based tax.

This implies that all SGST collected will ordinarily accrue to the State where the
consumer of the goods or services sold resides.
3. Computation of GST on the basis of invoice credit method: The

liability under the GST will be invoice credit method i.e. cenvat credit will be
allowed on the basis of invoice issued by the suppliers.
4. Payment of GST: The CGST and SGST are to be paid to the accounts of the
central and states respectively.
5. Goods and Services Tax Network (GSTN): A not-for-profit, Non-

Government Company called Goods and Services Tax Network (GSTN), jointly
set up by the Central and State Governments will provide shared IT infrastructure
and services to the Central and State Governments, tax payers and other
stakeholders.
6. GST on Imports: Centre will levy IGST on inter-State supply of goods and
services. Import of goods will be subject to basic customs duty and IGST.
7. Maintenance of Records: A taxpayer or exporter would have to maintain

separate details in books of account for availment , utilization or refund of Input
Tax Credit of CGST, SGST and IGST.
8. Administration of GST: Administration of GST will be the responsibility
of the GST Council, which will be the apex policy making body of the GST.
Members of GST Council comprised of the Central and State ministers in charge
of the finance portfolio.
9. Goods and Service Tax Council : The GST Council will be a joint forum
of the Centre and the States. The Council will make recommendations to the Union
and the States on important issues like tax rates, exemption list, threshold limits,
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etc. One-half of the total number of Members of the Council will constitute the
quorum of GST council.
GST MODEL
GOODS AND SERVICE TAX
Integrated
Central GST State GST
GST
Levied by the Levied by the Levied by the

Centre State Centre
This is This is This is

applicable on applicable on applicable on
supplies within supplies within interstate and
the state. the state. import
transactions.
Tax collected Tax collected Tax collected is
will be shared to will be shared to shared between
Centre State. Centre and State
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Figure-7
Central Goods and Service Tax.
CGST means Central Goods and Service Tax. CGST is a part of goods and service
tax. It is covered under Central Goods and Service Tax Act 2016. Taxes collected
under Central Goods and Service tax will be the revenue for central Government.
Present Central taxes like Central excise duty, Additional Excise duty, Special
Excise Duty, Central Sales Tax, Service Tax etc. will be subsumed under Central
Goods And Service Tax.
State Goods and Service Tax

SGST means State Goods and Service Tax. It is covered under State Goods and
Service Tax Act 2016. A collection of SGST will be the revenue for State
Government. After the introduction of SGST all the state taxes like Value Added
Tax, Entertainment Tax, Luxury Tax, Entry Tax etc. will be merged under SGST.
For example, if goods are sold or services are provided within the State then SGST
will be levied on such transaction.
Integrated Goods and Service Tax

IGST means Integrated Goods and Service Tax. IGST falls under Integrated Goods
and Service Tax Act 2016. Revenue collected from IGST will be divided between
Central Government and State Government as per the rates specified by the
government. IGST will be charged on transfer of goods and services from one state
to another state. Import of Goods and Services will also be deemed to be covered
under Inter-state transactions so IGST will be levied on such transactions. For
example, if Goods or services are transferred from Rajasthan to Maharashtra then
the transaction will attract IGST.
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GST Rates in India
S
S
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a
tt
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o
o
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ff E x e m p t e d ccategories a te g o r ie s – 0 %
Exempted – 0 %
G
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S S t ta anndoda arC
Standard
Standard rdd
o m
GGoods
G omoo ooddns sl and
Commonly
Goods a
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ndsd eServices
used SServices
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Grv voi ci ocedes ss fall
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and uunder
uServices
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Sneddre evr ri c2nd
2 1st
1enssdt –
–slab
sSlab
Sl5la a%
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––
– 12%
1 18%
12 8%%
o
o
o
d
d
ss
a
a
n
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d
d
S
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ee
rr
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ii
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--
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2
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8
%
%
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Figure-8
GST Council
 It is set up by president under article 279-A. It is chaired by union finance
minister.
 It will constitute union minister of state in charge of revenue and minister in

charge of finance or taxation or of any other field nominated by state governments.
The 2/3rd representatives in council are from states and 1/3rd from union.
 It will make recommendations on:
a. Taxes, surcharge, cess of central and states which will be integrated in GST.
b. Goods and services which may be exempted from GST.
c. Interstate commerce – IGST- proportion of distribution between state and center.
d. Registration threshold limit for GST.
e. GST floor rates.
f. Special rates during calamities.
g. Provision with respect to special category states specially north east states
 It may also work as Dispute Settlement Authority for GST.
 The Council would consist of 2/3rd representation of states and 1/3rd

representation of the Centre. The GST Council will take all decisions regarding tax
rates, dispute resolution, exemptions and so on. Recommendations of the GST
Council (75% votes) will be binding on the Centre and the States.
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Goods and Services Tax Network (GSTN)

Goods and Services Tax Network 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. It will also assist some State with the development of back end modules.
Goods and Services Tax Network (GSTN) is a Section 8 (under new companies
Act, not for profit companies are governed under section 8), non-Government,
private limited company. It was incorporated on March 28, 2013. The Government
of India holds 24.5% equity in GSTN and all States of the Indian Union, including
NCT of Delhi and Pondicherry, and the Empowered Committee of State Finance
Ministers (EC), together hold another 24.5%. Balance 51% equity is with non-
Government financial institutions. The Company has been set up primarily to
provide IT infrastructure and services to the Central and State Governments, tax
payers and other stakeholders for implementation of the Goods and Services Tax
(GST). The Authorized Capital of the company is Rs. 10,00,00,000 (Rupees ten
crore only).
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Structure of GSTN
 The GST System Project is a unique and complex IT initiative. It is

unique as it seeks, for the first time to establish a uniform interface for
the tax payer and a common and shared IT infrastructure between the
Centre and States. Currently, the Centre and State indirect tax
administrations work under different laws, regulations, procedures
and formats and consequently the IT systems work as independent
sites. Integrating them for GST implementation would be complex
since it would involve integrating the entire indirect tax ecosystem so
as to bring all the tax administrations (Centre, State and Union
Territories) to the same level of IT maturity with uniform formats and
interfaces for taxpayers and other external stakeholders. Besides, GST
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being a destination based tax, the interstate trade of goods and
services (IGST) would need a robust settlement mechanism amongst
the States and the Centre. This is possible only when there is a strong
IT Infrastructure and Service back bone which enables capture,
processing and exchange of information amongst the stakeholders
(including tax payers, States and Central Governments, Accounting
Offices, Banks and RBI).
 Prior to this, the Union Ministry of Finance had set up the Technical
Advisory Group for Unique Projects (TAGUP) in March 2010 to
make recommendations on the roadmap to roll out five major
financial projects including GST. TAGUP recommended setting up of
National Information Utilities as private companies with a public
purpose for implementation of large and complex Government IT
projects including GST.
 In compliance of the above decision, GST Network was registered as

a non-government, not-for-profit, private limited company under
section 8 (under new companies Act, not for profit companies are
governed under section 8) of the Companies Act 1956 with the
following equity structure:
Central Government 24.5%

State Governments & EC 24.5%
HDFC 10%
ICICI Bank 10%

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NSE Strategic Investment Co 10%
LIC Housing Finance Ltd 11%
Table-7
 In brief, the decision to structure GSTN in its current form was taken
after approval of the Empowered Committee of State Finance
Ministers and the Union Government after due deliberations over a
long period of time
GSTIN
 Goods and Services Identification Number is a 15 digit alphanumeric

number.
 First two digit shows the State code,
 Another ten digit shows the Permanent Account Number (PAN).
 Next number shows the entity number of the same PAN holder in a
state. Next is alphabet Z by default.
 Next is the check sum digit.
GST Identification Number
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1 2 3 4 5 6 7 8 9 1 1 1 1 1 1
0 1 2 3 4 5
State PAN Entity
code Code/
Check
digit
SWOT Analysis
Strengths
GST provides a comprehensive and a wider coverage of input credit set off service
tax credit could be used for the payment of tax on the sale of goods etc.
 A single GST could be used instead of other indirect taxes at the state and
central level.
 It would end the cascading effects.
 There would be uniformity of tax rates across the states.
 It ensures better compliance as the aggregate tax reduces.
 It helps in the reduction of prices of the goods and services to the consumer with
the reduction of tax.
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 It would reduce transaction costs and unnecessary wastage to both government

and individuals.
 It encourages transparency and unbiased tax structure.
 It brings efficiency in the indirect tax mechanism.
Weaknesses
 It doesn’t include alcohol and petroleum products which would lead to incurring
of huge losses.
 It requires strong IT infrastructure which is not highly developed in India.
 Single GST rate would be high compared to individual indirect tax rate.
Opportunities
 Reduction in tax burden will increase the competitiveness of Indian products in
the international market.
 There would be a gradual increase in the revenues of state and the union.
 Helps reducing corruption as the implementation of GST would result in a

gradual decrease of procedures and formalities.
Threats
 It is entirely dependent on the efficiency and effectiveness of the system
 Beneficiaries of the system are uncertain. It could be either state or the Centre.
This would create a chaos while preparing budgets and financing polices
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 Lack of co-ordination between the Centre and the state might affect the system
and also the revenues generated.
Interpretation of the SWOT Analysis

From the above SWOT analysis it is clear that GST would create uniformity of
taxes and also reduce tax burden. This in turn would increase revenues of the state
and the union at the country level and increase competition at the international
level. But this in reality might appear to be a dual tax system and would also
require a strong IT infrastructure. Besides this, it is entirely dependent on the
efficiency of the system. Co-ordination between the Centre and the state only can
help in its implementation and execution of the proposed plan. Therefore before
implementation of such a tax regime, it should be carefully examined at every
levels to benefit all the stakeholders.
Impact of GST on various sectors
IT
Currently IT sector is paying 14 percent of tax to the authority and subjected to 18-
20 percent after the imposition of GST. Also an important point to notice here, that
the long disputed issue of canned software taxation will also come to end as their
will no difference arise between goods and services after the GST. Overall impact
could be suggested here is neutral or slightly negative.
Telecom
In the current stage, the Telecom sector is paying 14 percent of tax to the
government body, but the scenario takes the shift after the imposition of GST. The
rate arises to 18 percent and the companies expect to pass the burden on the post-
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paid customers. There is also a lower input tax credit in this sector's capex cost.
Overall, it seems that this regime will be negative to the industry and the sector
will also be in state where they can't pass the entire tax burden to the customers
especially their prepaid segment.
Automobiles
Currently, automobile sector pays around 30 to 47 percent tax to the Government
which is now expected to range between 20-22 per cent, after the implementation
of GST. And the overall cost cutting can be expected for the end user by around 10
per cent. Transportation time should also be reduced as the check points and octroi
is cleared hands before. Overall GST will bring a smile into the automobile sector.
Cement
In the current scenario, cement sector is presenting 27 to 32 per cent of their share
to the tax authority. After the rolling out of GST, this will improve the sector
growth in various terms, like transportation by 20-25 per cent and in the warehouse
scheme as the rationalization would be easy in terms of state wise fragmentation
and also in the transportation cost as reduced transit time.
Pharmacy
Here, the impact could be neutral as the sector only shares 6 per cent of his share
to the tax authority. The sector also avails the incentives in tax benefits of location
wise. There are various concessional benefits and exemptions held for this sector
and will extend till the expiry of the period. The implications of GST would also
try to reduce the logistics cost and would also try to see in to the matter of inverted
duty structure.
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Banking and Financial Institutions

The sector is paying 14 percent right now, but not on the interest part of
transaction. After the GST implied, the tax horizon can expand up to 18 to 20
percent on the fee based transactions. Overall input expense of operations will
likely to increase and also hike in the transactions of financial in nature such as
loan processing fees, debit/credit charges, insurance premiums etc.
Result Analysis
Basic concept of GST:
How GST Work
Retailer to wholesaler
Gold 100000 100000
Sales Tax (14%) 14000 -
Duty (12.5%) 12500 -
Excise Duty (1%) 1000 -
CGST (18%) - 18000
Grand Total 127500 118000
Table-8
Wholesaler to retailers
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Price 127500 118000

Add margin (10%) 12750 11800
other charges (rent, transport) 15000 15000
Sub Total 155250 144800
Sales Tax (14%) 21735 -
SGST (18%) - 26064
Total Price 176985 170864
Table-9
Effect on IT Industrial
M&G LTD.
Software for school uses 9500 9500

Service Tax (14%) 1330 -
GST (5%) - 475
Grand Total 10830 9975
Table-10
Effect on Manufactory Industrial
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Whirlpool 6.5 kg Fully Automatic Top Load Washing Machine
Price (exclusive Tax) 15490 15490

Sales Tax (14.5%) 2168.6 -
GST (12%) - 1858.8
Grand Total 17658.6 17348.8

Table-11
Impact of GST on Indian Economy

Reduce tax burden on producers and foster growth through more production. This
double taxation prevents manufacturers from producing to their optimum capacity
and retards growth. GST would take care of this problem by providing tax credit to
the manufacturer.
 Various tax barriers such as check posts and toll plazas lead to a lot of wastage
for perishable items being transported, a loss that translated into major costs
through higher need of buffer stocks and warehousing costs as well. A single
taxation system could eliminate this roadblock for them.
 A single taxation on producers would also translate into a lower final selling
price for the consumer.
 Also, there will be more transparency in the system as the customers would
know exactly how much taxes they are being charged and on what base.
 GST would add to government revenues by widening the tax base.
 GST provides credits for the taxes paid by producers earlier in the
goods/services chain. This would encourage these producers to buy raw material
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from different registered dealers and would bring in more and more vendors and
suppliers under the purview of taxation.
 GST also removes the custom duties applicable on exports. Our competitiveness
in foreign markets would increase on account of lower cost of transaction.
 The proposed GST regime, which will subsume most central and state-level
taxes, is expected to have a single unified list of concessions/exemptions as against
the current mammoth exemptions and concessions available across goods and
services.
The introduction of Goods and Services Tax would be a very noteworthy 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 alleviate cascading or double
taxation in a major way and pave the way for a common national market.
GST REGISTRATION
A person is eligible to take registration if his aggregate turnover exceeds Rs.
20 lakhs and for person conducting business in North-East state are required
to take registration if their aggregate turnover exceeds Rs. 9 lakhs.
Aggregate Turnover means the aggregate value of all taxable supplies,
exempt supplies export of goods and/or services and inter-state supplies of a
person having the same PAN to be computed on all India basis.
A person has to take registration in the state from where taxable goods
and/or services are supplied.
Every person who is liable to be registered under Schedule III of this Act,
shall apply for registration in every such State in which he is liable within 30
days from the date of which he becomes liable to registration, in such
manner and subject to such conditions as may be prescribed.
Notwithstanding anything contained in sub-section (1), a person having
multiple business verticals in a State may obtain a separate registration for
each business vertical, subject to such conditions as may be prescribed.
A person, though not liable to be registered under Schedule III, may get
himself registered voluntary, and all provisions of this Act, as are applicable
to a registered taxable person, shall apply to such person.
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Every person shall have a Permanent Account Number issued under the
Income Tax Act, 1961 (43 of 1961) in order to be eligible for grant of
registration under subsection (1), (2) or (3).
The registration or the Unique Identity Number, shall be granted or, as the
case may be, rejected after due verification in the manner and within such
periods as may be prescribed.
A registration or an Unique Identity Number shall be deemed to have been
granted after the period prescribed under sub-section (7), if no deficiency
has been communicated to the applicant by the proper officer within that
period.
The Central or State Government may, on the recommendation of the
Council, by notification, specify the category of persons who may be a
exempted from obtaining registration under this Act.
GST registration page
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Figure-9
GST Identification Number
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
State PAN Entity
code Code/
Check digit
Amendment of Registration
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Every registered taxable person shall inform the proper officer of any
changes in the information furnished at the time of registration, or
that furnished subsequently, in the manner and within such period as
may be prescribed
The proper officer may, on the basis of information furnished under

sub-section (1) or as ascertained by him, approve or reject
amendments in the registration particulars in the manner and within
such period as may be prescribed, provided that approval of the
proper officer shall not be required in respect of amendment of such
particulars as may be prescribed.
The proper officer shall not

Any rejection or approval of the
reject the request for amendment
amendments under the
in the registration particulars CGST/SGST Act shall be
without giving a notice to show
deemed to be rejection or
cause and without giving the approval of amendments under
person a reasonable opportunity
the CGST/SGSTAct
of being heard.
Figure-10
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Tax Invoice:
A registered taxable person supplying –
taxable goods shall issue, at the time of supply, a tax invoice showing the
description, quantity and value of goods, the tax charged thereon and
such other particulars as may be prescribed;
taxable service shall issue a tax invoice, within the prescribed time,
showing the description, the tax charged thereon and such other
particulars as may be prescribed
Provided that a registered taxable person may issue a revised invoice

against the invoice already issued during the period starting from the
effective date of registration till the date of issuance of certificate of
registration to him;
Figure-11
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GST RETURNS
Every registered taxable person shall, for every calendar month or part thereof,
furnish, in such form and in such manner as may be prescribed, a return,
electronically, of inward and outward supplies of goods or services, input tax credit
availed, tax payable, tax paid and other particulars as may be prescribed within 20
days after the end of such month:
Provided that a registered taxable person paying tax under the provisions of
Section 8 of this Act shall furnish a return for each quarter or part thereof,
electronically, in such form and in such manner as may be prescribed, within 18
days after the end of such quarter:
Every registered taxable person, who is required to furnish a return under sub-
section (1), shall pay to the credit of the appropriate Government the tax due as per
such return not later than the last date on which he is required to furnish such
return.
A return furnish under the sub-section (1) by a registered taxable person without
payment of full tax due as per such return shall not be treated as a valid return for
allowing input tax credit in respect of supplies made by such person. Every
registered taxable person shall furnish a return for every tax period under sub-
section (1), whether or not any supplies of goods or services have been effected
during such tax period.
Note: Subject to the provisions of Section 25 and 26, if any taxable person after
furnishing a return discovers any omission or incorrect particulars therein, other
than as a result of scrutiny, audit, inspection or enforcement activity by the tax
authorities, he shall rectify such omission in the return to be filed for the month or
quarter, as the case may be, during which such omission are noticed, subject to the
payment of interest, where applicable and as specified in the Act:
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Types of GST Returns
GSTR-1
GSTR-2
GSTR-3
GSTR-4
TY PES
GSTR-5
GSTR-6
GSTR-7
GSTR-8
GSTR-9
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Figure-12
GSTR-1 = GSTR-1 is a monthly return that should be filed by every registered

dealer by the 10th of the following month. It is the first or the starting point for
passing input tax credit to the dealers. It contains details of all outward supplies i.e.
sales. GSTR-1 has to be filed by "all" taxable registered persons under GST.
However, there are certain dealers who are not required to file GSTR-1, instead are
required to file other different GST returns as the case may be. These dealers are
E-Commerce operators, Non-Resident dealers and Tax deductors. It has to be filed
even in cases where there is no business conducted during the reporting month.
GSTR-1 Registration
Figure-13
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File GSTR-1
The Suppliers need to log in to the GSTN portal with the given User ID
and Password, following these steps:
Search for "Services" and then click on Returns, followed by
Returns Dashboard.
In the Dashboard, the dealer has to enter the financial year and the
month for which the return needs to be filed. Click on Search after
that.
All returns relating to this period will be displayed on the screen.
Dealer has to select the tile containing GSTR-1
After this, he will have the option either to prepare online or to
upload the return.
The dealer will now Add invoices or upload all invoices directly.
Once the entire form is filled up, the dealer shall then Click on
Submit and validate the data filled up
With the data validated, dealer will now click on FILE GSTR-1
and proceed to either E-Sign or digitally sign the form.
Another confirmation pop-up will be displayed on the screen with
a yes or no option to file the return.
Once Yes is selected, an Acknowledgement Reference Number
(ARN) is generated.
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Figure-14
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GSTR-2
It is mandatory to furnish details of inward supplies of goods/services

received during a tax period for every registered taxable person. These
details are furnished based on FORM GSTR-2A which is auto populated on
the basis of GSTR 1 filed by your supplier, electronically through the
Common Portal, either directly or from a Facilitation Centre. However,
GSTR 2A does not in itself auto populates a complete GSTR 2, as there are
certain other transactions which are to be mentioned manually in addition to
the data which is generated through GSTR 2A, viz. Details of Inward
Supplies from an Unregistered Persons on which tax is paid on the Reverse
Charge basis and Imports effected during the tax period, etc
Who can file GSTR-2
It is mandatory to file a GST Return for each and every entity registered
under the GST Act. Even in case where there are no inward supplies during
the tax period, NIL return for that period is required to be filed. In case of
failure to file the return within due period, the tax payer is penalized with
the late fees of INR 100 per day up to a maximum limit of INR 5,000/-
When to file GSTR-2 ?

 Every registered taxable person is required to furnish details of Inward
Supply for a tax period i.e. the end of the relevant month.
 This return has to be filed by the recipient of (goods/services) supplies
within 15 days from the end of the relevant tax period.
 However to facility the ease of payment and return filing for small and
medium scale businesses with annual aggregate turnover up to Rs.1.5
crores, it has been decided in the 22nd GST Council meeting dated 06th
October 2017, that such tax payers shall be required to file quarterly returns
in Form GSTR 1,2 and 3 and pay taxes only on quarterly basis, starting
from the third quarter of this financial year, i.e. October to December 2017.
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Figure-15
GSTR-3
GSTR-3 is a return to be filed on monthly basis (compounding and ISD
taxpayers are exceptions). GSTR-3 is more like a pooled version of GSTR-
1 and GSTR-2. The form captures the information of outward and inward
supply information at aggregate level which will be auto populated through
GSTR-1, GSTR-1A and GSTR-2.It will comprise of the entire turnover
related details, including, local sales turnover, export sales turnover,
exempted local sales turnover, turnover except GST and taxable turnover. A
taxpayer just has to validate this prefilled information and make
modifications if required.
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Figure-16
GSTR-4
Compounding taxpayers would have to file a quarterly return called GSTR-4.

Taxpayers otherwise eligible for the compounding scheme can opt against the
compounding and file monthly returns and thereby make their supplies eligible for
ITC in hands of the purchasers. Compounding taxpayer will also file a simple
Annual return (GSTR-9).
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Figure-17
GSTR-5
Non –Resident Taxpayers would have to file GSTR-1, GSTR-2 and GSTR-3
returns for the period for which they have obtained registration. The registration
of Non–Resident taxpayers will be done in the same manner as that of Regular
taxpayers. Non-Resident Taxpayers would be required to file GSTR-5 return for
the period for which they have obtained registration within a period of seven days
after the date of expiry of registration. In case registration period is for more than
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one month, monthly return(s) would be filed and thereafter return for remaining
period would be filed within a period of seven days as stated earlier.
Figure-18
GSTR 6
GSTR 6 is a monthly return that has to be filed by an Input Service Distributor.
It contains details of ITC received by an Input Service Distributor and distribution
of ITC.
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Figure-19
GSTR-7
GSTR 7 is a return to be filed by the persons who is required to deduct TDS (Tax
deducted at source) under GST. GSTR 7 contains the details of TDS deducted,
TDS liability payable and paid, TDS refund claimed if any etc.
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Figure-20
GSTR-8
GSTR-8 is a return to be filed by the e-commerce operators who are
required to deduct TCS (Tax collected at source) under GST. GSTR-8
contains the details of supplies effected through e-commerce platform
and amount of TCS collected on such supplies.

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Figure-21
GSTR-9
GSTR 9 is an annual return to be filed once in a year by the registered taxpayers
under GST including those registered under composition levy scheme. It consists
of details regarding the supplies made and received during the year under different
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tax heads i.e. CGST, SGST and IGST. It consolidates the information furnished in
the monthly/quarterly returns during the year.
Figure-22
Annual Return
Every registered taxable person, other than an input service distributor, a deductors
under Section 37, a casual taxable person and a non-resident taxable person, shall
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furnish an annual return for every financial year electronically in such form and in
such manner as may be prescribed on or before the thirty first day of December
following the end of such financial year. Every taxable person who is required to
get his accounts audited under sub- section (4) of section 42 shall furnish,
electronically the annual return along with the audited copy of the annual accounts
and a reconciliation statement, reconciling the value of supplies declared in the
return furnished for the year with audited annual financial statement, and such
other particulars as may be prescribed.
Challenges faced during Return Filing
VAT GST
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Interaction with Government for compliance
Once a Quarter or 3 times Every Month

Month
Return filing
Summary of Sales/ Need to upload

Purchases needs to Every Transaction
Invoice Matching
Not Monitored Invoices of Supplier

extensively and Recipient need
Input Credit
Availed based on Can be availed only

Returns when Invoices are
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There are three important concepts in GST.
Time of
Supply
Place of
Supply
Value of
Supply
Figure-23
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1. Time of Supply
As per Section 13 Time of supply means the point in time when goods/services are
considered supplied’. When the seller knows the ‘time’, it helps him identify due
date for payment of taxes.
CGST/SGST or IGST must be paid at the time of supply. Goods and services have
a separate basis to identify their time of supply.
Section 31(1) of the CGST Act provides that a registered person supplying taxable
goods shall, before or at the time of,
 An invoice has to be created before removal of goods as defined in Clause

(96) of Section 2 of the CGST Act. If invoice is not created time of removal
shall be taken as last date of making invoice as mentioned in Section 12.
 If invoice is created earlier than time of removal, time of supply shall be
treated as date of preparation of invoice.
 If payment is received with respect to supply of goods earlier than making of
invoice, such payment shall be treated as time of supply.
Concept of time of supply of goods provided in GST law shows a departure from
the earlier Central Excise provisions. In the Central Excise provisions invoice was
required to be made at the time of removal only. These provisions give liberty to
trade and industry to prepare invoice well in advance of removal of goods. Thus, a
supplier of goods may issue an invoice to recipient but removes goods only after,
say receipt of payment. If in the meantime say, payment is not received, he can
cancel the invoice as per provisions of GST laws. Such cancellation of invoice
shall not result in removal of goods, retaking or return of goods in the supplier
premises etc.
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It is also considered 3 points:
Time of
Supply of
Goods
Time of Supply under Time of Supply for

Reverse Charge Services
Figure-24
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A. Time of Supply of Goods

Time of supply of goods is earliest of:
1. Date of issue of invoice
2. Last date on which invoice should have been issued
3. Date of receipt of advance/ payment*.
For example:
Mr. X sold goods to Mr. Y worth Rs 1,00,000. The invoice was issued on 15th
January. The payment was received on 31st January. The goods were supplied on
20th January.
*Note: GST is not applicable to advances under GST. GST in Advance is payable
at the time of issue of the invoice. Notification No. 66/2017 – Central Tax issued
on 15.11.2017
Let us analyze and arrive at the time of supply in this case.
Time of supply is earliest of –
1. Date of issue of invoice = 15th January
2. Last date on which invoice should have been issued = 20th January
Thus the time of supply is 15th January.
What will happen if, in the same example an advance of Rs 50,000 is received by
Mr. X on 1st January?
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The time of supply for the advance of Rs. 50,000 will be 1st January (since the
date of receipt of advance is before the invoice is issued). For the balance Rs.
50,000, the time of supply will be 15th January.
B. Time of Supply for Services
Time of supply of services is earliest of:
1. Date of issue of invoice
2. Date of receipt of advance/ payment.
3. Date of provision of services (if invoice is not issued within prescribed period)
Example:
Mr. A provides services worth Rs 20000 to Mr. B on 1st January. The invoice was
issued on 20th January and the payment for the same was received on 1st February.
In the present case, we need to 1st check if the invoice was issued within the
prescribed time. The prescribed time is 30 days from the date of supply i.e. 31st
January. The invoice was issued on 20th January. This means that the invoice was
issued within a prescribed time limit.
The time of supply will be earliest of –
1. Date of issue of invoice = 20th January
2. Date of payment = 1st February
This means that the time of supply of services will be 20th January.
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C. Time of Supply under Reverse Charge

In case of reverse charge the time of supply for service receiver is earliest of:
1. Date of payment*
2. 30 days from date of issue of invoice for goods (60 days for services)
*w.e.f. 15.11.2017 ‘Date of Payment’ is not applicable for goods and applies only
to services. Notification No. 66/2017 – Central Tax
For example:
M/s ABC Pvt. Ltd undertook service of a director Mr. X worth Rs. 50,000 on 15th
January. The invoice was raised on 1st February. M/s ABC Pvt. Ltd made the
payment on 1st May.
The time of supply, in this case, will be earliest of –
1. Date of payment = 1st May
2. 60 days from date of date of invoice = 2nd April
Thus, the time of supply of services is 2nd April.
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2. Place of supply
It is very important to understand the term ‘place of supply’ for determining the
right tax to be charged on the invoice.
Here is an example:
Location of Service Place of Nature of GST

Receiver supply Supply Applicable
Maharashtra Maharashtra Intra-state CGST + SGST
Maharashtra Kerala Inter-state IGST
Table-12
It is also considered 2 points.
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Place of Supply Place of Supply

of Goods for Services
A. Place of Supply of Goods

Usually, in case of goods, the place of supply is where the goods are delivered.
So, the place of supply of goods is the place where the ownership of goods
changes.
What if there is no movement of goods. In this case, the place of supply is the
location of goods at the time of delivery to the recipient.
Place of Supply When There is Movement of Goods:
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Supply Place of supply

Involves movement of goods, whether Location of the goods when the
by the supplier or the recipient or by movement of goods terminates for
any other person. delivery to the recipient.
Goods are delivered by the seller to a It is assumed that the third person has
recipient on the direction of a third received the goods and the place of
person (whether agent or not) before or supply of such goods will be the
during movement of goods by way of principal place of business of third
transfer of documents of title to the person.
goods or some other way.
Table-13
For example:
In case of sales in a supermarket, the place of supply is the supermarket itself.
Place of supply in cases where goods that are assembled and installed will be the
location where the installation is done
For Example: Intra-state sales
Mr. Raj of Mumbai, Maharashtra sells 10 TV sets to Mr. Vijay of Nagpur,

Maharashtra
The place of supply is Nagpur in Maharashtra. Since it is the same state CGST &
SGST will be charged.
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For example –
Deliver to a 3rd party as per instructions
Anand in Lucknow buys goods from Mr. Raj in Mumbai (Maharashtra). The buyer
requests the seller to send the goods to Nagpur (Maharashtra)
In this case, it will be assumed that the buyer in Lucknow has received the goods &
IGST will be charged.
Place of supply: Lucknow (UP
GST: IGST
Figure-25
No Movement of Goods
Supply is : Place of supply
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No movement of goods, either by the Location of such goods at the time of

supplier or the recipient. the delivery to the recipient ( at the
time of transfer of ownership)
The goods are assembled or installed at Place of such installation or assembly.
site.
Table-14
For Example: No movement of goods
Sales Heaven Ltd. (Chennai) opens a new showroom in Bangalore. It purchases a

building for showroom from ABC Realtors (Bangalore) along with pre-installed
workstations.
Place of supply: Bangalore
GST: CGST& SGST
There is no movement of goods (work stations), so the place of supply will be the
location of such goods at the time of delivery (handing over) to the receiver
Imports & Exports
The place of supply of goods:
Imported into India will be the location of the importer.
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Exported from India shall be the location outside India.
Supply is Place of supply GST

Goods imported into Location Of the importer. Always IGST on imports.
India.
Exported from India. Location outside India. Exports are exempted.
Table-15
For Example - Import

Ms. Malini imports school bags from China for her shop (registered in Mumbai)
Place of supply: Mumbai
GST: IGST
For Example - Export
Ms. Anita (Kolkata) exports Indian perfumes to UK
Place of supply: Kolkata
GST: Exempted
B. Place of Supply for Services
Generally, the place of supply of services is the location of the service recipient.
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In cases where the services are provided to an unregistered dealer and their
location is not available the location of service provider will be the place of
provision of service.
Special provisions have been made to determine the place of supply for the
following services:
 Services related to immovable property

 Restaurant services
 Admission to events
 Transportation of goods and passengers
 Telecom services
 Banking, Financial and Insurance services.
In case of services related to immovable property, the location of the property is

the place of provision of services.
Example 1:
Mr. Anil from Delhi provides interior designing services to Mr. Ajay (Mumbai).
The property is located in Ooty (Tamil Nadu).
In this case, place of supply will be the location of the immovable property i.e.
Ooty, Tamil Nadu.
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Determining The Place Of Supply Of Services
GST is destination based tax i.e. consumption tax, which means tax will be levied
where goods and services are consumed and will accrue to that state.
Under GST, there are three levels of Tax, IGST, CGST & SGST and based on the
‘’place of supply’’ so determined, the respective tax will be levied. IGST is levied
where transaction is inter-state, and CGST & SGST are levied where the
transaction is intra-state. For understanding Place of Supply for Services the
following two concepts are very important namely:
 location of the recipient of services
location of the supplier of services
The two concepts in detail as they will form the base for determining the place of
supply in case of supply of services are:
Location of the recipient of services:
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S.No Case Location of

. Recipient of Service
where a supply is received at a place of such place of business
business for which the registration has
A
been obtained
B where a supply is received at a place such fixed establishment
other than the place of business for
which registration has been obtained (a
fixed establishment elsewhere
C where a supply is received at more than the location of the
one establishment, whether the place of establishment most directly
business or fixed establishment concerned with the receipt
of the supply
D in absence of such places the location of the usual
place of residence of the
recipient;
Table-16
Location of the provider/supplier of services:
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S.No Case Location of Recipient

. of Service
where a supply is made from a place of the location of such
business for which the registration has place of business
A
been obtained
B where a supply is made from a place other the location of such
than the place of business for which fixed establishment
registration has been obtained (a fixed
establishment elsewhere
C where a supply is made from more than the location of the
one establishment, whether the place of establishment most
business or fixed establishment, directly concerned with
the provision of the
supply
D in absence of such places, the location of the usual
place of residence of the
supplier;
Table-17
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Category of supply of services:
Domestic
Transactions
International
Transactions
Figure-26
Domestic Transactions;
These are the transactions where both the parties i.e. the supplier as well as
recipient of service are in India. Domestic transactions can be further categorized
as below:
Inter-State (i.e between two different states)
Intra-State (i.e within the same state)
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General Rule
In general, the place of supply for services will be the location of the service
recipient (the recipient needs to be a registered person). In cases, where service is
provided to an unregistered person, the place of supply will be the:
 Location of the service recipient (if the address is available on record);

 Otherwise, location of service provider.
International Transactions
These are the transactions where either of the service recipient or the provider is
outside India. Transactions in which both the recipient as well as provider are
outside India are not covered here.
General Rule
The Place of Supply for services treated as international transactions shall be:
 The location of service recipient

 In case where the location of service recipient is not available, the place of
supply shall be location of the supplier.
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3. Value of Supply of Goods or Services

Value of supply means the money that a seller would want to collect the goods and
services supplied.
The amount collected by the seller from the buyer is the value of supply.
But where parties are related and a reasonable value may not be charged, or
transaction may take place as a barter or exchange; the GST law prescribes that the
value on which GST is charged must be its ‘transactional value’.
This is the value at which unrelated parties would transact in the normal course of
business. It makes sure GST is charged and collected properly, even though the full
value may not have been paid.
Works Contract under GST

Works Contract As per section 2(119) of CGST Act.
The taxation laws on Works Contracts have changed since the implementation
of GST. Any Immovable property wherein transfer of property in goods
(whether as goods or in some other form) is involved in the execution of such
contract.
In simple words, any contract in relation to an Immovable property where

services are provided along with transfer of goods is known as a “Works
Contract”.
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“Work s contract” is defined as a contract for Building, construction

Fabrication Completion, Fitting out, Repair, Maintenance, Renovation,
Improvement, modification,
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Building,
construction
Improvement, Fabrication
modification,
Repair,
Maintenance, Completion
Renovation,
Fitting out
Figure-27
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Works Contract in Pre-GST Regime
Different aspects of an activity were taxed differently in the pre-GST regime as

mentioned below:
Aspect in the Works Tax Applicable

Contract
Provision of Services Service Tax
Transfer of Goods VAT
Goods manufactured in course of Central Excise

contract
Table-17
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Let us understand the complications that a provider of works contract would

encounter previously:
 VAT being a state tax, different States had different VAT rates
 Different VAT composition schemes in every state
 Different abatement rates for new works contract and repair works
contract in service tax
 Maintenance of large amount of VAT documentation

Current law
Works Contracts consists of three kinds of taxable activities as per the current law.
It involves supply of goods as well as supply of services. If a new product is
created during the works contract, then such manufacture becomes a taxable event.
Currently, the supply of goods is taxable in the form of VAT and the service is
taxable under service tax.
If a new product appears in the process of completing a works contract, Central

Excise duty is levied.
So, different aspects of one a single activity are taxed by different laws. This
causes a lot of confusion regarding treatment and taxability which is why there are
so many legal disputes in related to works contracts.
GST aims to put an end to the uncertainty for the legislature.
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Works Contract under GST
Supply Of Service or Supply of Goods:
A simpler treatment has been introduced for Works Contract under GST. Schedule
II clearly states that Works Contract amounts to supply of services, hence the
confusion whether it will be categorized as supply of service or goods has been
done away with. A single rate has been fixed for services provided under Works
contract and the entire amount shall be taxed at this rate without any bifurcation
between goods and services.
Contract for Immovable property only:
Under the GST regime the scope of works contract has been restricted to any
activity undertaken in relation to Immovable property only, unlike the previous
regime where works contract for movable properties was also considered.
For example: Any composite supply of paint job done in an automotive body
shop will not fall within the definition of term works contract per se under GST.
Such contracts would continue to remain composite supplies, but will not be
treated as a Works Contract for the purposes of GST.
Separate Works Contract Account
A separate account for works contract must be maintained by a registered taxable

person who is executing work contract. Following information must be maintained
in this account:
 name and address of persons on behalf of whom works contract is executed

 description, value and quantity of goods or services received and utilized for
works contract
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 details of payment received in respect of every works contract undertaken

 Name and address of supplier from whom he received goods or services.
Decentralised Service Registration
As per the rules laid down under CGST Act, every person whose aggregate
turnover crosses the threshold limit of Rs.20 lakh and Rs 10 lakh in Special
Category States) must compulsory take registration. This applies to provider of
Works Contract as well. Thus, every state where a works contractor has a project
office, he will need to obtain a registration.
Composition Scheme
Composition scheme is not available to works contractors as it is treated as service

under GST. Composition scheme is only available to suppliers of goods and the
restaurant industry (not serving alcohol). He will have to register as a normal
supplier on crossing the 20 Lakh threshold. Hence, small sub-contractors will have
to incur increased cost of compliance as they cannot opt for composition scheme.
Abatement
No abatement has been prescribed for works contract under the GST law. Hence it
may lead to significant increase in tax burden, especially if such works contract is
taxed at Standard GST rate (which is 18%) and even if subjected to lower tax rate
(12%).
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Input Tax Credit for Works Contract.
As per section 17(5) of CGST Act, Input tax credit shall not be available in respect
of works contract services availed by a person for constructing an immovable
property (other than Plant and Machinery). ITC for works contract can be availed
only by those who are in the same line of business and is using such services
received for further supply of works contract service (e.g. ITC in respect of bill
raised by sub-contractor is allowed to the main contractor). Plant and Machinery in
certain cases, when affixed permanently to the earth, would constitute immovable
property. Thus, where a works contract is for the construction of plant and
machinery, the ITC of the tax paid to the works contractor would be available to
the recipient.
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Rates of GST for Works Contract
Two GST rates have been prescribed for services provided under Works contract
i.e. 18% and 12%.
GST @ 18%
Construction of complex, building, civil structure or a part thereof, including a
complex or building intended for sale to a buyer, wholly or partly, except where
the entire consideration has been received after issuance of completion certificate
Composite supply of works contract
GST @ 12%
Composite supply of Works contract to the Government, local authority or a
governmental authority by way of construction, erection, commissioning,
installation , completion, fitting out, repair, maintenance, renovation, or alteration
of:
 Historical monument, archaeological site or remains of national importance
 Canal, dam or other irrigation works
 Pipeline conduit or plant for
o Water treatment
o Water supply
o Sewerage treatment/disposal
 a civil structure or any other original works meant predominantly for use
other than for commerce, industry, or any other business or profession
 a structure meant predominantly for use as
o an educational
o a clinical
o an art or cultural establishment
o a residential complex predominantly meant for self-use or the use of their
employees
Composite supply of works contract supplied by way of construction, erection,
commissioning, installation, completion, fitting out, repair, maintenance,
renovation, or alteration of:
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 a road, bridge, tunnel, or terminal for road transportation for use by general
public.
 a civil structure or any other original works pertaining to a scheme under
Jawaharlal Nehru National Urban Renewal Mission or Rajiv Awaas Yojana
 a pollution control or effluent treatment plant, except located as a part of a
factory
 a structure meant for funeral, burial or cremation of deceased
 railways, excluding monorail and metro
 a single residential unit otherwise than as a part of a residential complex
 low-cost houses up to a carpet area of 60 square meters per house in a
housing project approved by competent authority empowered under the
‘Scheme of Affordable Housing in Partnership’ framed by the Ministry of
Housing and Urban Poverty Alleviation, Government of India
 post-harvest storage infrastructure for agricultural produce including a cold
storage for such purposes
 mechanised food grain handling system, machinery or equipment for units
processing agricultural produce as food stuff excluding alcoholic beverages
A works contract is treated as supply of services under GST. Under the previous
regime, there were issues in tax treatment of works contract. Both the Central
Government (on the services component of a works contract) & the State
Governments (on the sale of goods portion involved in the execution of a works
contract) used to levy tax. Thus, the same contract was subject to taxation by both
Central and State Government. GST aims to put at rest the controversy by defining
what will constitute a works contract (applicable for immovable property only), by
stating that a works contract will constitute a supply of service and specifying a
uniform rate of tax applicable on same value across India. Thus, under GST,
taxation of works contract will be simpler and easier to administer.
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ACCOUNTS AND RECORDS

Every registered person shall keep and maintain, at his principal place of business,
as mention in the certificate of registration, a true and correct accounts of
production or manufacture of goods, of inward or outward supply of goods and
services, of stocks of goods, of input tax credit availed, of output tax payable and
paid, and such other particulars as may be prescribed in this behalf: Provided that
where more than one place of business is specified in the certificate of registration,
the accounts relating to each place of business shall be kept at such places of
business concerned: Provided further that the registered person may keep and
maintain such accounts and other particulars in the electronic form in the manner
as may be prescribed. The Commissioner may notify a class of taxable persons to
maintain additional accounts or documents for such purpose. Every registered
taxable person whose turnover during a financial year exceeds the prescribed limit
shall get his accounts audited by a chartered accountant or a cost accountant and
shall submit to the proper officer a copy of the audited statement of accounts, the
reconciliation statement under sub-section (2) of section 30 and such other
documents in the form of manner as may be prescribed in this behalf.
Period of retention of accounts

Every registered taxable person required to keep and maintain books of account or
other records under sub-section (1) of section 42 shall retain them until the expiry
of sixty months from the last date of filing of Annual Return for the year pertaining
to such accounts and records: Provided that a taxable person, who is a party to an
appeal or revision or any other proceeding before any Appellate Authority or
Tribunal or Court, whether filed by him or by the department, shall retain the
books of account and other records pertaining to the subject matter of such appeal
or revision or proceeding for a period of one year after final disposal of such
appeal or revision or proceeding, or for the period specified under sub-section (1),
whichever is later.
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AUDIT
Audit by tax authorities
 The Commissioner of CGST/SGST or any officer authority by him, may

undertake audit of the business transactions of any taxable person for such
period, at such frequency and in such manner as may be prescribed.
 The tax authorities referred to in sub-section (1) may conduct audit at the
place of business of the taxable person or in their office.
 The taxable person shall be informed by way of notice, sufficient in
advance, not less than 15 working days, prior to the conduct of audit.
 The audit under sub-section (1) shall be carried out in a transparent manner
and completed within a period of three months from the date of
commencement of audit.
 During the course of audit, the authorized officer may require the taxable
person,
 To afford him the necessary facility to verify the books of accounts or other
documents as he may require.
 To furnish such information as he may require and render assistance for
timely completion of the audit.
 On conclusion of audit, the proper officer shall without delay inform the
taxable person, whose records are audited, of the findings, the taxable
person's rights and the obligations and the reasons for the findings.
 Where the audit conducted under sub-section (1) results in detection of tax
not paid or short paid, the officer may initiate action under section 51.
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OFFENCES AND PENALTIES
Offences and penalties: Where a taxable person who –
 Supplies any goods or services without issue of any invoice or issue any
false invoice with regard to any such supply ;
 Issue any invoice or bill without supply of goods or services in violation of
the provisions of this Act ;
 Collects any amount as tax but fails to pay the same to the credit of the
appropriate Government beyond a period of three months from the date on
which such payment becomes due ;
 Fails to deduct the tax in terms of sub-section (1) of section 37, or deduct
the amount which is less than the amount required to be collected ;
 Fraudulently obtains refund of any CGST/SGST under this Act ;
 Is liable to be registered under this Act but fails to obtain registration ;
 Transport any taxable goods without the cover of documents ;
 Fails to keep, maintain or retain books of account ;
 Issues any invoice by using the identification number of another taxable
person ;
 Destroys any material evidence ;
 Supplies, transports or stores any goods which he has reason to believe are
liable to confiscation under this Act;
Any person who contravenes any of the provisions of this Act or rules made
there under for which no penalty is separately provided for in this Act, shall
be liable to a penalty which may extend to Rs. 25,000/-
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Conclusion
It can be concluded from the above discussion that GST will provide relief to
producers and consumers by providing wide and comprehensive coverage of input
tax credit set-off, service tax set off and subsuming the several taxes. Efficient
formulation of GST will lead to resource and revenue gain for both Centre and
States majorly through widening of tax base and improvement in tax compliance. It
can be further concluded that GST have a positive impact on various sectors and
industry. Centre has decided to review the existing exemptions from Central
Excise Duty so that list of goods exempt from CGST and SGST list and 99 items
exempted from VAT are taken off from both the components of GST. VAT has to
some extent reduced tax-evasion and frauds. It is encouraging to note that most of
the traders and general public are aware of VAT. GST, the major reforms on
indirect taxes, will reduce tax burden due to cascading effect. The efficiency in tax
administration will be improved, indirect tax revenue will be increased
considerably due to inclusion of more goods and services, and at last the cost of
compliance will be reduced for the dealers. The implementation of GST will be in
favor of free flow of trade and commerce throughout the country. This single most
important tax reform initiative by the Government of India since independence
provides a significant fillip to the investment and growth of our country’s
economy. To get the desired result, it should be assured that the benefit of input
credit is ultimately enjoyed by final consumers. Although implementation of GST
requires concentrated efforts of all stake holders namely, Central and State
Government, trade and industry. GST effect the indirect taxation systems and help
reduce the burden on tax payer. GST help to reduce the burden of record make and
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file maintain. Because GST cover 10-12 Tax. GST reduce the price of various
goods and increase the sale. After the implementation of GST indirect taxation
Systems will remove and it easy to all tax payer to pay the tax to government.
Efficient formulation of GST will lead to resource and revenue gain for both
Centre and States majorly through widening of tax base and improvement in tax
compliance. It can be further concluded that GST have a positive impact on
various sectors and industry. Although implementation of GST requires
concentrated efforts of all stake holders namely, Central and State Government,
trade and industry.
23rd GST Council Meeting Summary:–
Changes in the tax slabs: - Taxes on over 200 items have been squeezed and a
whopping 88% of the items from the highest slab of 28% have been switched to
18%. Out of the 228 items in the 28% category, only 50 have been retained and the
rest 178 have been slid downwards to different tax brackets. 2 items saw a dip
from 28% to 12%, 6 items from 18% to 5%, 8 items from 12% to 5% and 6 items
from 5% to nil.
Changes in the composition scheme:-
 Manufacturers and traders would now operate at a standard rate of 1%.

 The threshold to opt GSTR-3B along with payment of tax will now need to
be filed by 20th of the next month till March 2018.
 Threshold for the composition scheme has been increased to Rs. 1.5 crores
from the current limit of Rs. 1 crore.
Softened fines on late filing:-
 Fine for late returns has been slashed by 90% to a mere Rs. 20 per day
from Rs. 200 per day for a taxpayer with nil liability.
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 Late fine for not submitting the GSTR-3B within due dates for the month
of July, August and September 2017 has been waived off.
Relaxed deadlines for filing returns
GSTR-3B along with payment of tax will now need to filed by 20th of the next
month till March 2018.
- Taxpayers divided into two categories for filing GSTR-1 till March 2018.
The categories are:-
Businesses with an annual aggregate turnover of upto 1.5 crores will file
GSTR-1 quarterly.
Period New Due Date

July - September 31 – Dec - 2017
October - December 15 – Feb - 2018
January - March 30 – April - 2018
Table-18
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Business with an annual aggregate turnover of above 1.5 crore will file GSTR-
1 monthly.
Period New Due Date

July – October 31 – Dec - 2017
November 10 – Jan - 2018
December 10 – Feb - 2018
January 10 – Mar - 2018
February 10 – Apr - 2018
March 10 – May - 2018
Table-19
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ANNEXURE
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QUESTIONNAIRE
My name is Nivedita Srivastava. I’m a MBA student at the AKTU University.

Supervised by Dr. Mamta Shukla. My research aims to evaluate and document the
understanding and expectations from the proposed Goods and Services Tax (GST)
to be introduced in India.
You are being invited to take part in this research because your experience with
taxation and the financial services industry coupled with your knowledge of the
proposed GST will greatly expand my understanding of the overall experience of
GST as part of my academic study.
The data from this study will be used in the completion of my Summer Training,
and it may be included in my doctoral thesis, journal articles, and presented at
conferences. Your response will be anonymous, and so anyone who takes part in
the research will not be identified.
This survey will take about 5 – 10 minutes. Most questions are multiple choice and
we ask that you simply provide us with your best answer.
Completion of the survey will be treated as explicit consent to participate in the

research. Because the survey is anonymous, it is not possible to withdraw from the
participation after the submission of questionnaire.
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1. Name and address of the business
2. Name and contact details of the interviewee
3. Number of members in the tax team
□ 0-5
□ 6-10
□ More than 10
4. Whether separate indirect tax team?
□ Yes
□ No
□ Not Applicable
5. If yes number of members in tax team for indirect tax
□ 0-5
□ More than 5
□ Not Applicable
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6. % of indirect tax paid to total tax paid by the business – By the business/by
clients
Financial % of IDT 0-10% 11-25% 26-50% More than

year to total tax 50%
FY 2011-
12
FY 2012-
13
FY 2013-
14
7. Does the department apply the existing service tax laws fairly?
□ Yes
□ No
8. Have you faced practical difficulties in compliances under the current service
tax requirements? If yes, give examples
□ Yes
□ No
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Examples - ____________________________________________________
______________________________________________________________
9. Have you ever encountered technical problems with the tax (eg, uncertainty as
to whether the service tax applied to a transaction you were involved with/your
client was involved with).
□ Yes
□ No
Examples - ____________________________________________________
______________________________________________________________
______________________________________________________________
10. Is the available legislation in relation to the proposed GST satisfactory or do

you feel need for more clarity?
□ Yes - Satisfactory
□ No – Need more clarity
11. Can you comment on the following in relation to the existing provisions of
service taxes impacting the financial services industry:
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Whether the banking services as included in the negative list is satisfactory or not?
Whether the definition can be amended to reduce litigation? (Discount income to
be specifically included – currently addressed only in the education guide)
□ Yes satisfactory
□ No – Needs to be amended for more clarity
Whether the exclusions to the definition of services are satisfactory or not?

(Secured Debts are not specifically included – currently addressed only in the
education guide)
Whether the definition of securities is satisfactory? (Securities as defined by

Reserve Bank of India – ‘RBI’ are still not specifically covered – currently
addressed only in the education guide)
Whether the existing definition of banking services as included in the negative list
is very clear? – (Eg to add Income on securities and services provided to RBI)
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□ Yes Very clear

□ No – Not clear
Whether taxability of financial services transactions in terms of “place of supply”

is clear and unambiguous? If yes, are you clear on the state in which the financial
service would be provided under the proposed GST regime and whether Rule 3/9
of the Place of Provision of Service Rules, 2012 – ‘POPS’ would apply?
□ Yes clear on applicability of POPS

□ No – POPS needs to be amended for more clarity
Whether it is clear that Rule 3 of place of supply rules applies to financial services?
□ Yes clear
□ No not clear
Whether current law is clear on the taxability of interchange income received by

issuing banks?
□ Yes
□ No
12. Are you aware of the taxing provisions for financial services under GST
regime globally? Can you suggest any provision which could be incorporate into
the Indian scenario?
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□ Yes
□ No
Comments -
__________________________________________________________
_______________________________________________________________
_______________________________________________________________
13. The taxability of the interstate transaction under the proposed GST is based on
the following:
Central GST ‘CGST’/ State GST – ‘SGST’ and Integrated GST – ‘IGST’ C-VAT
model for interstate transactions
Which of the above do you think is a better option?
□ IGST
□ C-VAT
14. Do the existing POPS need to be more clear and precise for taxability of
interstate transactions?
□ Yes
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□ No
15. Have you /your clients been subject to audits (CERA/EA 2000/VAT etc.) from
the department in relation to service taxes? If yes, were the issues raised resolved
in an appropriate manner?
□ Yes
□ No
Issues Resolved
□ Yes
□ No
□ Not Applicable
16. Do you use the services of external consultants for current service tax matters
□ Yes
□ No
□ Not Applicable
17. Do you see a rise in the demand for your services by clients?
□ Yes
□ No
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□ Not Applicable
18. If yes what is the nature of services desired – Advisory or compliance i.e.
special advice or routine work? Which would you rate as more dependent on the
external consultants?
□ Advisory (including special advice)

□ Compliance (routine)
□ Both
□ Not Applicable
More External consultant dependent
□ Advisory (including special advice)

□ Compliance (routine)
□ Both
□ Not Applicable
19. How much time do you currently spend on service tax compliances? Do you
think this will increase or reduce in the long term with the introduction of GST?
□ Less than 25%

□ More than 25%
□ More than 50%
□ Will increase with introduction of GST
□ Will decrease with introduction of GST
20. Do you think that the current service tax compliances are easier than the direct
tax compliances
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□ Yes easier than direct tax compliances

□ No not easier than direct tax compliances
21. Do you think the existing Cenvat Credit rules are fair? Are the exclusions
valid?
□ Yes – Fair exclusions valid

□ No – Not Fair exclusions not valid
22. Do you think the reversal mandated for the financial service industry is fair?
□ Yes
□ No
23. Do you think the provisions in relation to exports are clear?
□ Yes
□ No
24. Do you foresee any issues arising out of the amendment to export rules
whereby export to branches is not construed as exports?
□ Yes
□ No
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Issues -
_____________________________________________________________
_______________________________________________________________
25. Do you think the current exemptions provided under the existing laws are too
many or too less? Any suggestions to be incorporated in relation to the same in the
proposed GST?
□ Not Enough
□ Just Right
□ Too many
Suggestions -
_________________________________________________________
_______________________________________________________________
26. Do you think the proposed threshold exemption limit is correct?
□ Correct
□ Too Low
□ Too High
□ No comments
27. Do you think that the provisions in relation to valuation of services are
unambiguous? Specifically in relation to reimbursements of costs, financial leases
and credit card transactions?
□ Yes
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□ No
28. Do you think GST will be easier to comply with or difficult?
□ Easier
□ Difficult
□ Don’t know
29. Do you think under GST regime Centralized registration with one return for
state and one for centre will work or do you envisage multiple state registrations
and compliances under the proposed GST regime?
□ Multiple State registrations

□ Centralized registration
3.. Does your business have a policy/plan in place specifically to cope with the
proposed GST?
□ Yes
□ No
31. Is your current software system equipped to handle the proposed GST?
□ Yes
□ No
□ Not Applicable
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32. Do you have any software solutions for your client to handle the proposed
GST?
□ Yes
□ No
33. Do you think GST is a fair tax?
□ Yes
□ No
34. Is the proposed rate of GST @ 27% high, low or correct?
□ Too Low
□ Too High
□ Just Right
35. Would you rate the current service tax administration as better as or worse than
the direct tax administration?
□ Indirect – Service tax administration is better

□ Direct tax administration is better
□ Others -
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36. Do you feel that as a taxpayer you have an opportunity to raise your voice in
indirect – service tax matters?
□ Yes
□ No
37. Do you think that the proposed GST is a predominantly compliance tax or a
technically oriented tax?
□ Compliance Tax (Focus is on filling and filing of returns etc.)

□ Technical Tax (Focus is on the applicability or otherwise of the tax)
□ Don’t know
□ Both
38. Any suggestions/comments.
_______________________________________________________________
Reference
www.gst.gov.in
www.gstn.org
www.gstcouncil.gov.in
www.cbec.gov.in
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www.financialexpress.com
www.wikipedia.com
www.cleartax.com
177

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MBA GST Project Report

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This is to certify that Ms. Nivedita Srivastava is bonafide student of the

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I Undersigned Nivedita Srivastava student of Maharana

The information submitted herein is true and original to the best of my

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I would also like to express my special thanks to my guide Mr.Sudhir Gupta

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This argument can be extended to international competitiveness of the adversely

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Analysis in this report indicates that implementation of a comprehensive GST in

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However, there are major challenges to introduction of GST like amendment of

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 INTRODUCTION OF GST................ 80 – 153

 CONCLUSION…………….. 154- 157

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SR. NO CONTENT PAGE NO

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Objectives of the Study :

The specific objectives are as follows:

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Rational of the study

Scope of the study

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Limitations of the Study

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About Ircon International Limited:

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About Ircon International Limited:

Ircon international limited (ircon), a government company incorporated by the central

Ircon is a specialized constructions organizaton covering the entire spectrum of

The Company has a long standing reputation as a sectoral leader in Transportation

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After commencing business as a railway construction company it diversified

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Presently, Ircon is executive projects abroad in Nepal, Bangladesh, South Africa,

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Railways - Track, Railway

Track & Electrification - Metro

Electrical Sub Station &

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Greater focus on International Projects in Railway Sector

Valley-value USD 1.60 Billion.

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Double tracking of Rawang Seremban

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Rehabilitation of 670km track of Sena line,value USD 68 Million.

15.70 km of ballast less track for

Roads & Highways

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 Expertise and know-how to undertake mega road projects of all

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• IRCON has in-house resources to undertake turnkey contracts