GST Regime Helping IT Infrastructures –
Things are always easier said than done. However, As rightly pointed out by tax experts, given a large number of changes and a plethora of details to be furnished, migrating to an entirely new tax regime is not going to be a cakewalk.
GST will significantly increase the dependency of the firms on their respective IT systems.
However, many questions still remain unanswered such as
‘How will GST be implemented?’
‘How will the government action a smooth transition to GST?’
‘How will the Government ensure smooth compliance on an ongoing basis?’
‘How robust will be the reconciliation process?’
Answer to most of these questions lies in deploying the right technology.
Technology has always played an important role in ensuring tax compliance across multiple systems.
An effective way of ensuring an end to end GST transformation would be to deploy right tax technology and infrastructure which takes into account multiple GST requirements catering to varied geographies and businesses.
Migrating data is the most important task which will affect both master and transactional data.
It requires widespread deploying of proficient resources. Therefore, it becomes vital to inspect and identify the impact areas of GST implementation in ERP systems.
The major functionalities that are going to get impacted under GST would be the following –
1. Chart of Accounts
2. Master Data Information
3. Tax Rule Engine
4. Reporting and Workflows
Bringing out these changes in an ERP is not an easy task and organizations should work on these without any delay.
Companies across industries will need to understand the importance of integrating technology into their business so that the GST transition is smooth.
Businesses will also have to ensure that not only them but even their vendors are registered on the GST network in order to ensure with compliance and audits.
Complex billing & invoicing requirements would arise owing to the valuation provisions of the GST bill, thus complicating filing of the tax returns and making credit flow mechanism a little difficult.
Gearing up for training, understanding new taxes, system upgrades and developing compliant IT systems thus will become crucial for businesses.
A report released by the World Economic Forum on the Ease of Doing Business Index showed that India’s rankings had improved by 16 places to 39 in 2016, among 138 countries, from 55 last year.
GST implementation will help in scaling up India’s rankings in the global competitiveness index even further as technology will take centre stage for successful GST implementation across the country.
What do I need to be compliant?
A minimal infrastructure which small enterprise will need will include
a. Personal Computer
b. Internet Connection
c. Ability to record invoice (could be a spreadsheet)
d. Subscription to ASP/GSP or know-how to directly upload invoices on the Government portal
Who are an ASP and GSP?
The government has set up large technology platform called GSTN which will store all data pertaining to GST (including invoices and returns) and created multiple gates to this infrastructure through GSP (GST Suvidha Provider) who will carry taxpayer data to GSTN servers.
Application Service Providers (ASP) are working with GSP to provide value addition in this entire compliance platform starting from the ability to integrate with ERP’s and help in match-making and filing returns.
“Why is it important to have technology in the GST regime ?”
1. Technology will help to be Timely compliant.
2. Incremental upload to handle large volumes.
3. Complete & Correct information
Organizations who run Tally and are wondering how can GST be implemented in Tally and still be integrated with ERP, would be glad to know that we at Nandini Infosys have pioneered Tally for the last 15+ years.
We have successfully optimized Tally systems to be GST and ERP compliant. I would be happy to help industry colleagues to build up a robust GST enabled IT infrastructure.
What are the challenges you have faced while implementing GST in your organization?