GST India will lead to the transformation of businesses as we know it today across industries. Companies at this stage, therefore, need to carry out a thorough assessment of GST implementation on various aspects of their business. GST tax India will bring about significant changes in tax compliance, that needs to be acted upon with immediate effect to make businesses future ready.
GST is a destination based tax. Therefore, corporations irrespective of size must make haste to become a GST registered company and align all their business processes to the new under GST tax India. Businesses with complex supply chain structures need to re-examine transactions across locations and branches and chalk out an appropriate deployment strategy. GST compliance requires a clinical and systemic approach that will make regular compliance a hassle-free experience for any GST registered company.
Here is a quick take on steps that a financial head of an organisation needs to take to make his organisation GST ready:
Understanding the full impact of GST on business processes
The advent of GST for business necessitates the redesign of the distribution network of most organisations to remain efficient and competitive. The process of overhauling current distribution network is no small task. A GST registered company must, therefore, adopt a methodical approach for the impact analysis on current points of the supply chain.
For companies present in various locations, a location wise analysis and a product or division wise analysis are of utmost importance. A holistic approach considering people, processes and technology will bring about effective results in complying with GST for business.
Business owners along with their finance accounting and IT heads must participate in conducting GST workshops with the help of tax experts. Branch and location heads must attend these workshops in order to understand how to maintain the GST liability of state wise output and input credit register vs the current centralised system. Branch heads must understand the functioning of IT system that must be able to support multiple GST returns. The IT system will play a critical role in determining the division of invoicing according to CGST, SGST and IGST.
Support of an efficient IT system is a must to be GST complaint
The IT system of an organisation must be equipped to make the following changes to the following data:
Master Data– GST obliterates the distinction between goods and services. Taxes applicable on goods and services must be classified according to location thus finding a place under CGST, SGST or IGST. Thus tax details of all master data pertaining to vendors, customers and products must be re-arranged accordingly.
Reporting Data– The process of returns filing will undergo significant change under the new GST regime. Finance heads of the organisation will have to ensure that accurate information is disseminated while filing returns under the format of GSTR1 and GSTR2. Once again, the IT system must play the key role in capturing the requisite information in the correct format.
The need to align or upgrade software solution
The IT system is the backbone of any business, and with the advent of GST, IT systems must play an enhanced role in not just capturing the data, but facilitating a drill down from GST classification to GST computation from every branch and location. The key lies in upgrading to an IT System that has robust features and can ensure a smooth migration to the upcoming GST regime.
By deploying the Excellon solution you can manage this transition efficiently. We will work alongside you to understand the impact of GST for business and will help you implement a highly scalable and customised solution that will increase your efficiencies and make you fully GST compliant. To know more please visit www.exactgst.com
To know more visit www.exactgst.com