Goods and Services Tax, a comprehensive indirect tax, would be the biggest reform in India’s indirect tax structure to be levied on manufacture, sale and consumption of goods and services throughout India. Comprising of about seventeen indirect taxes like entry tax, luxury tax, service tax, excise tax, VAT, entertainment tax, Octroi, etc., GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer.
With GST, the tax base will be comprehensive with very minimum exceptions. It will have cascading effect on cost of goods and services sold and will impact the tax structure, tax incidence, tax computation, compliance, credit utilization and reporting leading etc. It will affect every part of business right from Financial Reporting, Tax Accounting, Supply Chain, Technology enablement and Contracts redesign.
To enable a successful implementation, a common ground would have to be identified to bring together various stakeholders for a common cause. The inter-dependencies need to be identified upfront at project initiation and plans to put in place to manage them.
Impact of GST on Business:
Are you ready for GST?
The team in Intelizest has been closely involved in various SAP, MicrosoftMaster Data changes/ impact
System Design – Assessment of the impact of GST on different functions and implementing necessary measures
Potential changes to accounting and IT systems in areas of Master Data, Supply Chain transactions
Analysis of Open transactions and balances that needs to be migrated to ensure smooth transition to GST
Changes to various reports and form
Training of employees, compliance under GST etc.