this article is about the essential formalities required to completed to get ready for the new GST regulations.
To get prepared for this new change you need to know few things and these will also help you to evaluate your preparation. The first thing businesses need to do is modify their accounting system as it will replace the current accounting system completely. It is very important for the businesses to understand the idea of GST before start acting smartly on it.
The next important thing is to get your business chain ready to shape up with this new change. The big size businesses have a chain of vendors and suppliers working with them and all of them might not get registered under this umbrella. Big businesses must encourage the chain companions to get GST registered. If the vendors themselves does not fall under this umbrella , they must also follow the similar invoicing system.
The government has set up a GST network, which is basically a common portal to file GST. This is very important for companies to get familiarized with this portal so that they can file their returns accordingly. Even the big businesses that will face more complexities to face this transition are recommended to get engaged with the government, finance ministry and various finance chambers to understand the process better.
With this GST hit the indirect taxation policies, the current ERP (Enterprise Resource Planning) system will not be applicable anymore. Changing the ERP system is costly, but with this new picture coming up, all businesses are required to upgrade this system. Also, all the financial softwares need to be upgraded and modified as GST tax will have more impact on the taxation and financial calculation. The changes will be delicate as not the complete software needs to change, but only the related patches needs to be modified accordingly. Not only the software patches, but the backend system also needs to be updated accordingly to comply with this new transition phase. Setting up milestones to monitor the transition progress can be the best way to getting under this GST umbrella with all the accordance.
GST rates have been decided and businesses are recommended to upgrade their taxation system within next three months.
Stories by All India ITR