GST (Goods and Services Tax) refers to a tax which is imposed on the supply of goods and services. Earlier, there were various taxes on goods and services provided to consumers by businessmen. With the introduction of GST in India, there has emerged a cumulative tax, applicable to all business users.
The GST is quite complicated and if you are small or medium business owners, you have to worry about many details. But a dedicated and good online accounting platform which also provides GST return solution like Giddh can surely help you in estimating taxes and paying them on time.
In the beginning, the GST roll-out posed tremendous pressure on the shoulders of businesses. The most notable fact is that the nuances of the tax regime were not impacting only specific industries, but all. So now the question at hand is, “Have businesses overcome the complexities of the new tax regime?” and more importantly, “Has your business overcome those complexities?” The answer to that question is, well, bittersweet. The problems still persists, but the strain on businesses has reduced thanks to technology and automation tools.
One wonders if there is a simple way to overcome the complexities of GST. Technology has surely come to the rescue of business owners as they combat the complications of the new tax regime. But measures to ease compliance by the govt. are concentrating mostly on medium and small industries while big companies are clamouring for relaxation. As per statistics, small industries contribute the majority of GST collection.
The MNCs have become vocal about the impact of GST and problems of taxation. They have not been able to include the single time dispute resolution system, suggested as part of GST by the govt. Though the complexities of the new regime have impacted the big companies, they consider the execution of GST as a major achievement.
Technology is considered as a solution for tax worries of big companies. The focus is on GST reporting tools. The govt. has envisioned that:
- Tax evasion will come to an end:
Earlier tax regimes made evasion much easier. Even making the tax collection strict did not help the situation. Now the GST has emerged as a solution to combat all types of tax frauds. Currently, the software and the govt. are all out against tax evasion.
- Unification of taxes:
The Govt’s idea of one tax, one nation was faced with credulity and doubt on the part of the tax payers and businesses. Multiple tax slabs have caused much confusion. But the govt. has been able to save face thanks only to GST friendly accounting softwares. By a happy chance, technology has validated the tax process. GST reporting tools currently assist over 5 million tax payers in the nation. However, some businesses are indulging in fraud. The govt. is facing problems like illegal multiple registrations and delayed refunds.
Role of GST Friendly Accounting Softwares
Amidst all progress in taxation, only technology has the capacity to streamline GST and design it as business-friendly. Streamlining focuses on making the entire process of taxation simple. Taxpaying businesses need not be involved in complex tax calculation but can focus on their businesses. GST friendly accounting encourages businesses to co-operate with the GST.
The main aim of GST is to curb tax evasion. The govt. and taxpayers must operate at the same frequency. Once this balance is achieved, the nation will enjoy taxation that is free of evasion.