your password has been reset successfully, Please login again.

Why is GST Compliance a Crux For Firms?

Compliance-related changes in the tax infrastructure cannot be employed for long as GST bill demands a new tax infrastructure.
BY Jaspreet Kaur
Feature Writer, BusinessEx
Oct 19,2018

GST (Goods and Services tax) regime is in the function for one year now. In the past, the bill drew various controversies and caused upheaval nationwide. An ignoramus amount of strikes and boycott rallies were done to exhibit anger against the new taxation bill. However, even then the bill remained in function as timely altercations had helped to form it as per industry standards.

Positive Outcomes of the GST

Within a years span, the bill has hugely impacted the economy. Every niche, from the manufacturing sector to the IT sector, whether small sized companies or giant organizations are bearing fruits of the GST. Primarily, the regime has curated different tax slabs under GST owing to which, each sector has its own decided tax slab depending on its profitability and economic share.

Furthermore, the new bill has incremented the number of taxpayers in one years time period. As per the Income Tax Department PAN allotment statistics 2018, the current taxpayers are 37, 90, 84, 056 which is more than last years count. The increase is predicted to be forty per cent as compared to the previous year.

Problems Faced in Complying with GST Bill

Acknowledging the GST bill was a tough practice for the entire economy and similarly, conforming to it is also growing tension amongst firms. Earlier on, a few compliance-related altercations were done to conform new taxation bill. Though, these compliance-related changes are not enough as it is believed that firms need to alter their tax infrastructure altogether. For years, companies in India have been following old tax structures.

Other than this, there are various other reasons which have caused a sudden need to adopt a new tax infrastructure:

  1. Lack of System

Employees at big roles aid paying out apt financial returns for the companies. However, due to GSTs complexity, the assistance of these employees is no more effectual as the compliance-related changes cannot be used for a long time.

Thus, creating a foolproof tax infrastructure is significant for firms as then the companies can pay returns effortlessly without persistent altering of outdated tax infrastructure.

  1. Meet Future Requirements

The government chiefly introduced the new regime to cope with future global trends. The aftermath of this decision has exhibited steep-high growth in the industry. Although, the tax bill has stimulated companies to develop their own infrastructure because if there would be any other transformation in the GST bill then firms might not be able to comply with it.

Thus, foreseeing the future, companies are seeking a transformed and flexible tax infrastructure.

  1. Company Size Matters

The Indian economy comprises of varied sizes of organizations, ranging from SME to large size companies. So, while planning tax infrastructure companies need to take their company size in consideration and accordingly, make amends. For small companies, updating GST module would suffice while for giant companies, which have a global presence, an altercation of the entire workflow is needed.

In this small time period, issues that have risen are transitory; however, it is certain that more challenges like this will rise in the future. Thus, up-gradation of the GST is a conventional mandate norm for all companies.

Please add your Comment
SIMILAR Articles
December 11, 2018
he selling process of the small-scale business is intricate and demands to take various things into ...More
By Jaspreet Kaur
November 23, 2018
Two Key Drivers That Can Augment The Selling Price Of The Business ...More
By Jaspreet Kaur
November 19, 2018
For a business which is seeking a logistics company for long should know know when the right time to ...More
By Jaspreet Kaur
November 09, 2018
Know the investment plans that cater higher financial return at lower risks. ...More
By Jaspreet Kaur
November 05, 2018
Small clothing brands struggle to create a mark in the clothing industry. Ace the performance by emp ...More
By Jaspreet Kaur
November 05, 2018
Kick off your electrical business by following 3 handy tips ...More
By Jaspreet Kaur
November 02, 2018
Opt investments plans which are more secure and less yielding ...More
By Jaspreet Kaur
November 02, 2018
Commence an interior design business by following three essential steps ...More
By Jaspreet Kaur
November 01, 2018
Relationships foster changes and multiple chances of success in the Construction industry ...More
By Jaspreet Kaur
November 01, 2018
Handy tips to manage finance of the fitness centre ...More
By Jaspreet Kaur
October 31, 2018
Analyze the market and then, make an investment decision ...More
By Jaspreet Kaur
October 31, 2018
Existing businesses can be enticing but one should be cautious before making a decision ...More
By Jaspreet Kaur