Expectations From GST Regime

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Expectations From GST Regime

Just few weeks remain for a nationwide GST rollout and there would be several questions hovering over the mind out of which one would be ‘What to expect from the GST tax structure and what changes would I need to make in my system to adapt to the new tax regime? This blog will stress on the changes that you might experience in your business and would also highlight some key prospects. As most of them already know that GST’s foundation relies on the concept of invoice matching and it will essentially change the way your business functions in the following ways:

Transition to a ‘Payment on Invoice Upload’ conduct

In the period before GST, which is the current period, you could finish a transaction after obtaining a bill and paying the relevant amount to your supplier, and you can also assume the capability to benefit from the tax credit on the bill, even prior to submitting your tax returns. Now, with the new rules as per GST, only after matching the invoice successfully, you are assured the benefit of tax credit. So the question here is how you can be rest assured that rejection subject to tax credit doesn’t happen or it reflects improper value?

So, this is the way the process will go. Initially, your supplier will upload the invoice to the GST system, preferably through state of the art Tally ERP 9 software. After this, you will proceed to check if all the invoice’s data data is proper and match your records. Only after the verification of the invoice, you are expected to pay to your supplier. Before paying you, your clients would also like you to upload the related sales invoices. Thus henceforth, i.e. after GST rollout, ‘Payment on Invoice Upload’ will become a frequent occurrence.

Increase in the Interaction with Government Tax System

Currently most businesses interact with the government tax system either on a monthly or a quarterly basis. However, with the ‘Payment on Invoice Upload’ behaviour in GST this interaction will be more common than ever before. It starts with the invoice being uploaded either by you, your GST practitioner or both. And, the situation wherein the invoice is uploaded by both of you, the data requires to be effectively managed instead of being the root of confusion. In this scenario, you begin to accept invoices for your purchases and would expect a real time status of invoices prior to paying to your supplier. All this would lead you to more frequently engage with the government tax system

A system that Boosts confidence in signing returns

When you file returns through the Tally ERP app already integrated with GST the last step would require you to download the summary and sign the return. Prior to your signing, it’s absolutely essential to ensure that nothing remains and there’s no difference between the things that you’ve submitted and what GSTN has sent you. It’s also vital to be aware that here, you your suppliers as well as the customers can all update related sections of the information that are part of your return.

GST has a lot to offer and industry experts believe that it will streamline businesses as there will be no more complicated taxes involved. So, expect something good to come out of GST.

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