GST however requires a
synchronization between the taxpayer's application, an invoicing software, and
also the GST system, which without the automation would however be a rather a difficult task.
Thus, one of the key
priorities today is however harmonisation of the existing complex, indirect tax
system by however replacing it with also a uniform Goods and Service Tax (GST).
GST is thus meant in order to simplify the Indian indirect tax regime by
however replacing a host of taxes by thus a single unified tax, thereby
however subsuming a central excise,
service tax, VAT, entry tax, etc.
Since the entire system of
indirect taxation is however thus
undergoing a complete make-over, there are thus a plethora of challenges for however it’s
thus successful implementation and transitional issues will become particularly
relevant. For the taxpayers, challenges thus
however begin with understanding this transitional provisions to however
redesigning the supply chain and also
distribution of strategy, forming of the
new business policies and thus also the framework, studying the impact
on the cash-flow and also the profitability and thus also addressing the sector specific issues. GST regime
thus also necessitates a high level of synchronization between the taxpayer’s
application, i.e. an ERP, either an accounting or an invoicing software, and
also the GST system, which however
without automation would thus however also be a rather difficult task. These
thus also include item level detail in the invoices, maintenance of the trail
of thus all amended entries, reconciliation of the sales and also purchase
the register between the vendors and also the buyers however on a minimum three monthly returns and also
the other events such as an auto
reversals demand or the automation of tax compliance process within thus
however any tax entity. If however
anything is considered amiss, it will thus also directly impact the business’s
compliance rating and also act as a deciding factor for the buyers, lenders and
also the insurers, whether in order to
deal with that business or not. Timely tax compliance will thus also be critical for the business success and also a robust and also scalable solution in order
to manage the GST compliance.
The purpose of this article is to make the reader aware as
to why tax automation is thus considered as critical for the business success
under GST.
Firstly,
we will have to explain as to how the taxpayers can however utilize GST.
The government however
has to built an intuitive solution, however it thus does not have reconciliation functionality
which will thus also be needed for the
error free filling of the GSTR2 and also GSTR1A. It is thus also not possible
in order to automate the filling process using the official portal. Taxpayers
however have two options; they can thus
either utilize the solution which is
however provided by the Government or
the private entities called as the GST Suvidha Provider (GSP) and also Application Service Provider (ASP) for the
GST compliance. Such of the functionality, thus
along with also the other value added features, will thus also make the
process more simpler. Till now, Goods and Services Network (GSTN), is thus also a private company set which is thus also up
in order to provide IT infrastructure thus to the government, taxpayers and
also the stakeholders for GST
implementation have thus however appointed 34 GSPs which will thus offer support and also the services in form of however GST APIs in order
to help the taxpayers and also the
businesses in compliance. They are thus needed in order to exchange information
with the GSTN’s servers.
Now, let
us discuss as to how GST APIs can thus help the Taxpayers.
Functionalities which
however are available through GST APIs thus
includes registration of the tax payer and thus also the
tax consultants, return filling (GSTR1 up to GSTR12), payments, ledger
maintenance, etc. Then there are also
ASPs which however are a more
generic term for the entities who are
however building the return filling applications. An ASP however
need not be accredited by the GSTN, although it thus must have a contract with
a GSP in order to access GST APIs.
Interestingly, almost all the GSPs are thus also ASPs. In case few GSPs are
however also not ready, their customers can thus also use the (GSTN’s) offline
tool in order to upload the invoices.
Taxpayers which are however having small number of business to business
invoices, like the retailers and also the small traders, can thus do the data entry on the (GSTN) portal itself. Factors however such as intuitiveness of the reconciliation, validation and also the tax determination engine, data security,
storage and also privacy policies etc. should thus also be taken into consideration by the taxpayers
while however choosing the right technology vendor in order to always
ensure a smooth compliance.
This article has been contributed by Simmi Setia, Content Writer at LegalRaasta, an online portal for GST Software, GST Return Filing, GST Registration, Section 8 Company Registration, Nidhi Company Registration, IEC Registration, Fssai License, File ITR Online.
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