Change Is In The Air

India Is gearing up for the GST tax Regime.Everyone- from manufactureer to end consumer -stands to gain from it.

- Abhinav Singh

Nishank Goyal's company, Masters India Private Ltd, did business in aluminium products. But,the Delhi-based entrepreneur realised a while ago that there would be huge potential in the implementation of Goods and Services Tax in July. So he rolled out the technology portfolio of his company to target the new GST wave. And, his company was picked as one of the 34 GST Suvidha Providers shortlisted by the Goods and Service Tax Network (GSTN).

GST Suvidha Providers help tax payers and businesses to transform smoothly towards a GST regime. “There was a technical evaluation, and we eventually got selected. Our technology arm has a team of 25 developers, tax experts and chartered accountants who helped us achieve this,” said Goyal.

Apparently, everyone stands to benefit from GST. Businesses and consumers had been burdened in the current taxation regime with double taxation, complicated rules, and uncompetitive tax rates and structures. “Central and state governments have been unable to control leakages from the system, and the public has been troubled with higher prices on goods and services due to all this,” said Goyal.

GST is expected to set the economy on course for good growth. But, businesses need to be prepared to cope with the transition. “A robust solution will be required to manage GST compliance as the GST regime necessitates a high level of synchronisation between tax payer’s system, i.e. an ERP (Enterprise Resource Planning), an accounting or an invoicing software, and the GST system. Without automation it would be a difficult task,” said Goyal.

It is a demanding task, and lapses would upset the entire process. “If anything is amiss, business’s compliance rating will take a hit, and it will act as an indicator for buyers, lenders and insurers,” said Goyal. “Timely tax compliance will be critical for business success.”