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Case Study

GST EVASION AT MANPASAND BEVERAGES LIMITED: FAILURE OF CORPORATE ETHICS OR POLICY MAKER’S FORESIGHT?

Dr .Pooja Chaturvedi Sharma, Gitarattan International Business School
Goods and Services Tax, Tax Evasion, Strategic Decision Making, Manpasand Beverages Limited, Corporate Governance, Business Ethics

Abstract:                               

This case converges on the fact that by following ethical practices companies can reap its benefits in the long run as it has a positive influence on the performance of company and vis-a-vis. This case focuses on how erred strategic decisions can erode the credibility of a company. The case features Manpasand Beverages Limited, a leading firm in the Indian beverage industry. Manpasand Beverages Limited was engaged in the business of production of fruit juices in the beverage segment. The company had a market capitalization of Rs.1,200 crore.The company created fake units to take advantage of the resultant fake GST credit and execute tax evasion of Rs.40 crore on a turnover of almost Rs.300 crore. The company also presented fabricated financial statements, misleads stock market regulators by concealing important information and floated some apprehensive pieces of information which even the company representatives were not able to explain. The Indian indirect taxation system has been tweaked to empower the tax authorities to tackle the country’s tax evasion issue and one such issue has been addressed in this case.

Learning Objectives 

1. To identify loopholes in the GST system and SEBI proceedings.
2. To identify the factors that stimulated Manpasand Beverages Limited to commit unethical tax evasion activities.
3. To understand and identify 4Ps of Corporate Governance.
4. To understand and apply Corporate Governance models.

 

 

  • Pub Date:
    28 Sep 2020
  • Source:
    Manpasand Beverages Limited
  • Discipline:
    Financial Management,Accounting / Banking & Financial Services,Business Ethics
  • Product#:
    1459
  • Keywords:
    Goods and Services Tax, Tax Evasion, Strategic Decision Making, Manpasand Beverages Limited, Corporate Governance, Business Ethics
  • Length:
    Pdf : 13 page(s) ,

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