PaulS:
The Serial1.begin() command is only used on Arduino Megas, and has nothing to do with baud rates.
What do you think the argument is, then?
It most certainly DOES have to do with baud rates.
Sorry PaulS and santu0111, clearly my statement was far too ambiguous. What I was attempting to say was that when you do or do not use Serial1.begin() has nothing to do with how fast your transmissions are, and only has to do with whether or not you're using a Mega.
The stuff you have before the infinite loop in loop() belongs in setup().
I agree with PaulS. You should put
//Making GSM Module ON
delay(500);
digitalWrite(on,HIGH);
delay(7000);
digitalWrite(on,LOW);
In the setup() function, because you only want it done once. Even though moving it has nothing to do with the functionality of the code, it just makes it look nicer.
Koop