Need for GST Software Toward Businesses in India

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Since its emergence on July 1, 2017, the GST (Goods and Services Tax) has traversed a long journey. Meanwhile, it faced several problems, protests and much more but the ruling government stood firm to support GST compliance in the country. Today, GST is considered as an important step taken by the government of India to reform the indirect tax regime by subsuming all the local taxes. However, it affected the Indian economy in both ways negatively and positively.

The GST compliant companies which trade in goods witness stake hike while the objects such as warehouses, supply chain, logistics as well as retail, transport companies and distributors have the possibility of confronting severe effects if the GST return filing is not done correctly and on time. Because all the entities are interconnected and a single mistake can affect the entire value chain of supply badly.

Before GST, supply chain, warehousing and logistics industries work separately and not systematically, which was due to the absence of a proper management system. But post-GST implementation, the industries, and businesses require to adhere to change rules, which were in their favor to increase productivity with the use of automation. At the same time, the businesses away from automation and tech are facing problems like not being able to compete with rivals and lagging with the time passing.

Earlier, in a situation like a server down or any other related issue, it caused people to wait for more than 30 to 40 hours at the check posts. While with the GST, not only the lengthy processes got simplified but also the involved paperwork complexity has been lowered. Consequently, the people efforts have been reduced to a great extent at various interstate check posts. The introduction of the e-Way bill which is a self-compliance mechanism reduces time at the check posts. Going by the World Bank reports, the companies become eligible to save around 30 to 40 percent only in logistics if they implement the e-Way bill and GST processes properly, correctly and on time.

E-commerce websites with implied changes are growing day by day which in result increasing expectations of the customers from them. Among changes, the change of one-day delivery is attracting the customers most due to which in trend products go out of stock within a day instead of a month or months. To cater to such high demands, the supply chains of the companies should also be inlined with the expectations of the customers through the quick availability of products. It will become possible only when the supply chains would have an eye on the inventory while the delivery of the product.

It brings in the concept of a central warehouse that is used to have stock of an inventory. It not only helps in lowering down the carrying cost but also saved the economies of scale. If in case a product is high in demand then the central warehouse would make it easier to gather goods and send it out for delivery as soon as possible. But, if any issue occurs in the manual GST compliance the supply chain would be stuck there. So, tax automation is the key to a smooth supply chain management.

Earlier, when the GST was not applicable in the country, the selection of location for warehouses was difficult as the state boundaries were the barriers at that time. Post GST, the right to choose the transit routes and the locations for the warehouses have been granted for the companies. And it becomes possible with the integration of the divided Indian market into a single market. The beginning of a new trend of "mega" or "mother" warehouses along with the smaller deposit has brought a change with each passing day in the form of shrinking deposit and their easier establishment closest to the customers. If you want to get the benefit of this new system the GST automation is required as compulsory.

If considered the reason behind the popularity and success of GST, time and correct compliances play a vital role in this procedure-driven system. The investigation of business in compliance with GST is an expensive matter and with the carefree compliance case, the cost goes even higher in the long term scenario.

If you are filing for GST and your business is not compliant with it, this blend of GST and non-compliance can be proved so harmful. In such situations, the businesses required to focus on the late fees and penalties along with the compliance ratings as well. The businesses can check for timely compliance and the position of the companies for higher compliance ratings with the support of two systems namely the "Real-time technological solutions" and "automation of tax compliance systems".

The use of technology and advanced equipment in these areas make systems more accurate, systematic and streamline it with the compliances. Also, it provides the opportunity for growth for the existing businesses. Further, it opens the door for the newcomers as well. In addition to this, the companies are developing the habitats of delivering products on time and it can only be attained with the mandatorily use of e-way bill and GST compliances.

Initially, when the e-way bill system was introduced it was aimed to control the tax avoidance by the taxpayers so that the tax collection for the government increased. Now with the time passed, generating the GST e-Way bills has become easier.

Earlier, the generation and cancellation of e-Way bills were handled through government websites. It has now been created via several modes such as Android App, SMS and by the site-to-site via API.

If the businesses are not being able to generate the e-Way bills not only their reputation will be faded but also they will attract cash penalties along with the effect on their other GST assessments. So, the issues such as ignorance of procedural non-compliance penalties confirmed quick delivery of goods, and benefits for businesses in different ways can be resolved only with the "automated solutions technology".

There are numerous businesses that tried to avoid the installation of expensive GST automation solutions, but now it has become mandatory. The competition for GST software in the market is growing day by day so the companies are trying their level best to supply valid security measures following the industry standards. The selection of best-automated solutions is in the hand of organizations who deals with GST and its compliance each and every fiscal year in order to beat its rivals in its category.

Although the Indian traders may come with variable options to tackle their day to day business operations, still there is a need for proper and reliable Gen GST billing software for small businesses in India to overcome the vast compliance complexities played by the government of India.

Sag Infotech offers multiple taxation software for a wide field of professionals to cater to their needs in the tax world. The company is running for nearly 2 decades and possess 50 thousand + clients across India.