As the proposed GST Rollout date is coming close day by day, a question is arising that Is the Industry and Trade ready for the GST Rollout. But here the question arises that Is the IT Backbone of the GST ie. GSTN ready to take the burden of billions of GST Compliances from July 1.
GSTN is designed to be the common interface for Centre and state governments, taxpayers, tax authorities and banks.
From the Technological point of view, it won't be easy task for the GSTN to handle the huge number of invoices each month with millions of taxpayers requiring to file upto 37 tax return in a year from July Onwards.
Moreover Cyber crime is one of the serious threat to GSTN as several attempts wered made from the countries such as Pakistan and China to swarm the system with a DDOS attack and bring it down.Therefore the GSTN is planning to build a Cyber Security unit to overcome the unexpected threats to the system.
India’s GST is the most complex of all the countries which have implemented GST as this will be a multi-tier tax rate structure and complex rules makes it a tough task. Although GSTN had been working on the system since two years inspite of the non availablity of the Final Laws and rules. And now when the Rules and Law and rates are almost finalised, GSTN is supposed to get ready by July which seems to be impractical. Despite of the fact, GSTN is really confident about being ready by July.
Unlike other nations, goods and services in India will be charged at different rates depending on the categories they belong to. Tax rates for 1,211 items have been finalized.In nutshell, a simpler tax law results in better tax compliance and improved tax collection efficiency. But with a complex GST, India may have many more teething troubles to overcome compared to other countries that have adopted this tax.
Now the food for thought is that whether the common man will be able to comply the new system from July onwards wihout any awareness about the new system,and ultimately small units and service Industry will suffer.
In order to avoid the pain ,the Businesses need to be prepared for the GST before July, by taking into consideration the following points:
# Businesses should Start analyzing the impact on GST on your business by ensuring that your suppliers are getting ready to and they will have mechanism to create and upload invoices in GST formats.
# Businesses should Enable basic technology platform for Invoicing in GST supported formats
# They should have a subscription to ASP/GSP or know how to directly upload the invoices on GSTN portal.
GSTN will store all data pertaining to GST (including invoices and returns) and creat multiple gates to this infrastructure through GSP (GST Suvidha Provider) who will carry taxpayer data to GSTN servers.
Application Service Providers (ASP) are working with GSP to provide value addition in this entire compliance platform starting from ability to integrate with ERP's and help in match-making and filing returns.
In case of any Queries on GST, Book your call with our GST Experts at GST Legal Suvidha Helpline