@KieSeyHow: have you tried to set it to "automatic time zone"?
I usually use "Automatic time zone (Use network-provided time zone)". That works in the US (I have VZW).
I remember that at some point I had problems with that while traveling to Europe. I believe it was not receiving the TZ information from the provider (probably because of roaming on GSM), so, I had to set it manually. It was in the summer after some changes with the Daytime Saving. I believe the problem was because my rather old phone did not have the update for the timezone. (I really hate that cell phone manufacturers and service providers (VZW) chose to have such a short life-span of Android updates on phones and tablets -- no security updates, nothing.) So, I had to choose the timezone that was different by 1 to accommodate that.
But in the US, even when I set the time manually to the correct zone, I have no problem getting the right time.
("Eastern Standard", "Central Standard", "Mountain Standard" and "Pacific Standard" - all observe DST, but, e.g. "Arizona", "Central America", and a bunch of cities in Mexico -- do not. I was surprised not to see Indiana on that list, as it doesn't observe DST, AFAIR.)
My phone is Droid Razr M, with Android 4.1.2.