India has seen many changes this year. But, none can beat the introduction of GST into our daily lives. While everyone has an opinion about it, not many people know the exact impact it is having on our lives. The hard hit ones who are trying to adapt to the new change are the businesses especially ones depending on software. If your business software is not GST ready, then you must take actions immediately to make the necessary changes.
GST, the Goods and Services Tax is perpetual and has brought in irreversible tax reforms changing the Indian taxation system. While all types of businesses are having a tough introducing GST to their business, the software companies which are providing business applications services are among the most affected. As the entire taxation system has been changed, there are many changes to be made in the software to calculate taxes and change tax accounting systems from the scratch. But, we can say that GST has reduced the tax burden on small businesses.
Basically, GST is an all-inclusive indirect tax that is levied on manufacture, sale, and consumption of all types of goods and services for the entire country. Earlier, these taxes were collected separately in the name of central and state tax. Now tax is collected by input tax credit method. This will allow the registered businesses to get tax credit for the value of GST that they have paid to purchase the goods and services. No goods and services are differentiated from one another and all are taxed equally. For the dual-rated GST, exports are zero-rated and imports are taxed two way namely, Central GST and State GST. State-administered taxes like Excise, service Tax and VAT are now replaced by one tax all over the country.
With the successful implementation of GST, the GST software services are developing an entirely synchronized ERP accounting system that will successfully support inventory supply management. They are trying to create multiple modules for input credit, twin rates, exclusion, destination system, and many other factors of GST. While many companies are starting to prepare for the transition, some have already succeeded in developing software for the smooth implementation of GST. Some small companies do feel that coping with tax requirements will definitely lead to extra financial burden when you talk about tax compliance.
If your company was using old systems, the transition may be a bit difficult for you. There are many new companies that are adapting GST accounting software to their clients business without much trouble. Hire such a company to make your business a GST friendly company. GST is a change that is going to go down in the history of the country. Like all other fields, it is definitely effecting the business software sector. Some Software Solutions can effortlessly implement GST to all sorts of business. So, if you own a company, then you must surely get a software company to do your GST related changes for your software. Once your software is GST ready, then there will be no stopping you for at least a while.