The Government has made serious efforts towards making the GST a reality in India very soon. The model law and the various draft rules in relate to registrations, returns and refunds are there in the public domain.
With GST, it is anticipated that the tax base will be comprehensive, as virtually all goods and services will be taxable, with minimum exemptions. .
GST will be a game changing reform for the Indian economy by creating a common Indian market and reducing the cascading effect of tax on the cost of goods and services. It will impact the tax structure, tax incidence, tax computation, tax payment, compliance, credit utilization and reporting, leading to a complete overhaul of the current indirect tax system. .
GST will have a far-reaching impact on almost all the aspects of the business operations in the country, for instance, pricing of products and services, supply chain optimization, IT, accounting, and tax compliance systems. The change will also be required in various agreements, contracts with vendors as well as customers or clients etc. to incorporate the GST impact. .
The Government is targeting to kick off the GST from 1st April 2017 so little time is left to review and assess the GST impact on the business process and operations. But with proper planning and determination this can be done. The businesses should start reviewing its operations with help of professionals and make the suggested changes for the successful implementation of the GST. for instance there will be a major change required in the IT, accounting softwares, ERP systems. There will also be a training required for the finance and accounts people, procurement team etc. to understand the changes and impact of GST in their respective areas and so on so forth. .
Business Development and marketing teams should also know how GST will impact the pricing of their products. There will be required a proper coordination and harmonization between various departments of an organization for smooth transition to GST. .
In the light of the above one can say that GST will not only be a major Tax Reform but a Business Reform as well, as it will change the business processes and the way of doing its operations across the globe. .