For first time readers, a prologue to this story The GST Turmoil- To Ring IT or Not?
Mr. Kaul the CEO of a Textile company was having a discussion on GST Implementation with his CA Mr. Ashok Mehra.
Mr. Mehra was answering questions asked by Mr. Kaul on GST Implementation …
- We have multiple branches, suppliers and vendors – won’t this be complicating?
- We already have a software; do we have to hire a licensed Goods and Service Suvidha Provider (GSP) for implementing GST compliant software? Is our IT system GST Compliant?
- Why do we go digital and invest so much money for a GST compliant software?
- Why can’t we save money and ask our CA firm to download a free software?
I was happy to peek into the process of analyzing the GST Implementation and see GST through Mr. Mehra’s eyes. While we were on our journey to GST; Sales Head – Ms. Xavier, Purchase Head – Mr. Bharucha and CFO – Mr. Arora joined us in the journey. Seeing them, I couldn’t withstand my excitement and exclaimed
“The biggest opportunity for big companies has come by far in the DIGITIZATION of internal process!”
Mr. Mehra said, “Mr. Kaul! I want to add further to what you have said, digitization will be instrumental in shaping the indirect taxation structure by encompassing the indirect taxes of the center and the state into GST.
As our units are spread across India, with the implementation of GST, the tax filing will be an easy process. GST filing is a process which will involve filing against each invoice for each item purchased or sold which will bring transparency and error-free data. Monitoring of Inward and Outward supply, purchase and supply have done by the company – ‘Reconciliation’ will be at the core of the GST Implementation.
With complete GST digitization, it will be extremely necessary for businesses to go online. The volume of invoices that will be generated will increase GST touch-points making return filing a lengthy process. The IT sector will face a major challenge of setting up a huge database, prepare best-in-class framework and build up solutions by carefully working with the Chartered Accountants(CA) and Tax Consultants.
Asking the CA firm to download free GST software is not a feasible option because GST filing can be done only through licensed GSP vendors. GST Network (GSTN) has built an ecosystem of 34 GSPs only, which acts as a gateway to provide GST automation services. So, unauthorized players cannot offer licensed software. The list of shortlisted companies is available on http://www.gstn.org/ecosystem/pdf/Finals_from_Delhi_and_Bangalore.pdf. GSP vendors are authorized and leading technology service providers who will guide, consult and share a perfect accounting infrastructure solution.
Reconciliation of the invoices generated, are done at every stage making tax filing a very easy process. The taxable seller files the GSTR-1 for the outward supply made. Buyers can view his inward supply of goods or services in GSTR-2A and then later approves the outward supply done by the seller in GSTR-2. If the buyer makes any modifications, then it will be reflected in GSTR-1A where the seller can approve or reject. Upon filing of GSTR 1 and GSTR 2, GSTR-3 is generated.
With the implementation of the GST regime, GSPs will play a very important and critical role to smoothen the transition of corporates, traders and businesses into the GST Network. It is the effort of Goods and Services Network (GSTN) to construct the GSP eco-system, assure its success with transparent and error free framework for efficient and inspired enterprises and entrepreneurs. It is expected from the GSPs to provide all the services mentioned by the GST regime.
The road to GST was quite long and windy but the destination was educational and enlightening. It is rightly said – “The road to success is always under construction.”
Are you struggling with the existing accounting software and still awaiting GST roll-out dates?
Stay ahead with Cygnet GSP. Contact Cygnet Infotech – nominated as leading technology provider for GST Suvidha Provider (GSP) at email@example.com.