What is GST(Goods and Services Tax)?
The Goods and Services Tax (GST), considered as the most profound reform in India’s indirect taxation system finally becomes a reality. GST anticipates that the tax base will be with minimum exemptions. The main expectation from GST is to eliminate all indirect taxes and only GST would be levied. As the name suggests, the GST will be levied both on goods and services.
GST is heralded as a unified system of taxation by which the economy will take an upward swing. GST is a tax imposed on multiple industries, specifically for manufacturing, sale and consumption on goods and services. This tax will be a substitute for almost all indirect taxes by the State Government and Central Government. Exports and various direct taxes such as income tax, corporate tax and capital gains tax are not included in GST, hence will be unaffected by the new taxation system.
The Rajya Sabha has cleared the bill to amend the constitution and bring about a system of GST in India. The new taxation system is perhaps heralded as the most crucial economic reform on current government’s agenda. GST happens to be complicated as most massive taxation reforms usually are.
How is India’s Tax System Structured Today
The constitution divides the taxation powers between the states and center. Income tax is the exclusive province of central government, which is referred to as direct tax. Indirect taxes are levied on manufacture and selling of goods. In India, indirect taxes levied on manufact
urers or provision of services are the exclusive domain of state government. There are multiple taxes when there is trade across state borders; in addition, there are some local indirect taxes levied such as Local Body Taxes (LBT) or Octroi. These will be abolished after GST comes into effect. Click to read more
GST Benefits and Impact on Indian Economy
Amidst economic crisis across the globe, India has posed a beacon of hope with ambitious growth targets, supported by a bunch of strategic undertakings such as the Make in India and Digital India campaigns. The Goods and Services Tax (GST) is another such undertaking that is expected to provide the much needed stimulant for economic growth in India by transforming the existing base of indirect taxation towards the free flow of goods and services. GST is also expected to eliminate the cascading effect of taxes. India is projected to play an important role in the world economy in the years to come. The expectation of GST being introduced is high not only within the country, but also within neighboring countries and developed economies of the world. Click to read more
Top reasons why every business needs complete GST solutions
India’s complex indirect tax structure became simpler and integrated with the new tax reform-GST. Experts believe that the Indian economy will get a boost with the cascading effect of GST in the long run. The successful GST implementation with a unified tax structure across diverse Indian regions is a daunting task, especially when not all Indians are completely yet aware of the benefits and processes related to GST.
To simplify and automate processes related to GST filling and adherence, a GST software is a must for all industries so that the new tax process doesn’t divert them from their core business processes. This article will elaborate few reasons why businesses should look out for a complete GST solution which complies with all GST norms Click to read more.
|1. Boosting Digitalization Process||2. Ease of Document Management|
|3. Compliance is of the Most Importance||4. GST will ensure more Systematization|
|5. Data Security||6. Flexibility is Important|
|7. Artificial Intelligence will make the complex system Easy-To-Use|
GST Software – GST Challenges and Solutions
India’s complex and multi-layered tax structure came to an end with GST implementation on 1st of July 2017. GST gets the credit to make business owners aware of the applicable tax rate they would be paying, to whom and where. This increases work for the Government of India as well when approximately 260-300 crore invoices will pass through the GSTN (GST Network) and returns will be filed thrice a month!
Having said the above, the way any new process has hiccups initially, so is the case with GST. While it overall simplifies the taxation process, the challenge is to know and follow each step while filing GST. Small and medium business owners face bigger challenges in the entire process with a lack of a comprehensive GST software that they can rely on and is easy on their pockets as well.
Hence, the last few months have been busy for small and medium businesses mainly because of 2 reasons – to organize their business in process of getting GST ready and to search for the right tool to support their business through this process.
What is required is a comprehensive software that can help businesses in following GST with just a few clicks and which makes minimal changes to their existing processes. Click to read more
Deskera is India’s First GST Ready Software
The launch of the Goods and Services Tax (GST) on 1st of July 2017, is the first step towards a new India that is working along with the uniform taxation for a more stable economy tomorrow.
The new integrated and consumption-based tax levied on manufacture, sale and consumption of goods and services has removed the cascading effect of tax-on-tax and has completely replaced the old and complex tax structure. It not only makes the tax system less complicated, but also helps in increasing compliance, boosting revenue and in reducing the tax outflow for consumers.
GST implementation has impacted almost all sectors with a mix of both positive and negative impact. The concern most business across all industries have is in and around GST filing and they are looking for a complete GST solution to help them with get through the initial GST hiccups.
Enterprise software with GST compliance can help businesses through this phase. They need to hence ensure adaptability, scalability and customization as the foremost features to ensure a positive GST Impact on SMEs. It is important to use a GST ERP Software that can not only just compute GST, but can also be readily plugged in to accommodate any upcoming changes in GST categories, rates and rules. Click to read more