The Indian economy is going to make a big shift through the big tax policy change through GST. The change is going to directly hit the businesses as well as each Indian citizen and let us expect the best is going to happen.
The real Unity in Diversity is going to Happen in India.
India got freedom in 1947 from the clutches of foreigners but we were in our self made limitations of the tax laws of each state. Citizens of India are separated based on its culture, language, religion as well as in the point of taxation. Through the implementation of GST, India is becoming united in taxation. An Indian can sell goods or services everywhere in India without disparity using the GSTID. Businessmen are going to enjoy the simplicity in business from the complexity of State wise Sales taxes. Even though there are many apprehensions about the GST like its multi layer taxes and high rates up to 28 %, there is a buzzing; Indian economy is going to be powerful and transparent. Amidst criticisms people are welcoming the new tax system.
One Office One India
Anyone can do business across India using one GST registration. Instead of going behind many tax and government offices like Central Excise, State tax offices for different registrations, it becomes very simple through the one registration through the web portal of GST Network. GST facilitates to maintain different branch offices or warehouses across the country using one GST registration helps to manage the businesses with utmost ease and analysis of the business data become very simple.
Eradicate the tax anomalies
The GST system is going to eradicate a set of tax anomalies like
- Cascading Effect of Tax
- State wise taxes
- A list of Central taxes and levies
- A list of complex tax rules
List of taxes going to disappear
- Central Excise Duty
- Additional Excise Duties
- Excise Duty levied under the Medicinal and Toiletries Preparation Act
- Service Tax
- Additional Customs Duty, known as Countervailing Duty (CVD)
- Special Additional Duty of Customs – 4% (SAD)
List of State taxes to disappear
- VAT / Sales tax
- Entertainment tax
- Luxury tax
- Taxes on lottery/betting and gambling
- State Cesses and Surcharges in so far as they relate to supply of goods and services.
Challenges in Business
Even though government took lot of measures and directions to ease the migration, crores of MSME class businesses sweat to migrate the processes into line. The new methodology of operation has to come into practice and users should get the understanding of its possibilities and limitations. Once the new system start working, the support and assistance from the government tax machinery become a crucial part. As the business opportunity spans across the country, local advantage of a business also might reduces. Generally everyone see the possibility of high tax rates but in long run, competition aggravates in every business place and which lead to the survival of the quality products and best selling services. There is a big chance to regulate the profit share which a business enjoys presently. As the system becoming transparent, speed and efficiency along the price in the services may become the ruling factors.
If the existing software do not have the capability to manage the existing tax system and GST, the user has to find a suitable software for his business along with proper
A Good ERP will be the Backbone of business
Through the transparent taxation methods of GST, businesses need to invest in good ERP and accounting software to manage the transactions flawless. It becomes necessary to upload all the purchases and sales transactions with the product and service details including the HSN Code for materials and SAC for Services into the GST website.
GST v/s Quarto
Quarto outperforms in the aspects of flexible adaptation of rules. As the product is designed to reduce the customization cost, most of the GST related requisites are fulfilled. The accounting of GST is very well incorporated in the software which is tested and ready to use. One another advantage of the software is that the same software will manage the existing VAT system and the old methodology will remain usable for future needs. That means Quarto is both VAT and GST capable at a time.