GST Challenges for SMEs
Goods & Service Tax is something which is going to bring turmoil in Indian taxation and businesses. It is not just about change of taxation or taxation structure but a lot more than that. Many of the businessman look at it as simplification of the taxes. No doubts about it because GST is going to eliminate Excise for Mfg, Excise for traders, VAT, Service Tax and probably some local taxes to avail a single window of taxation. But that is a half piece of information. The changes are not just limited to the taxation structure, but also the way you submit the tax information to government. That is going to have a bigger impact on role of the computerized systems in taxation. This is a primary element that is missed out by many of the businessmen which either they are not aware of or have not understood the real complexity of GST!!
SME sector is by and large unorganized sector especially related to accounting, taxation & MIS. Most of them use Tally Accounting Software but still miss out on using Tally as a system. Rather they rely on person driven MIS, may it be Accountant or CA or Tax Consultant. Till date a ‘software system’ was rarely a necessity and was more a small tool used for calculations prepare some daily reports and get the accumulated sales and purchase figures required for tax returns. The ‘software system’ is rarely used for keeping check on taxation in day to day operations. This factor is going to be changed upside down with implementation of GST!!!