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 year’s 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 year’s 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 year’s 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:
Employees at big roles aid paying out apt financial returns for the companies. However, due to GST’s 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is significant for firms as then the companies can pay returns effortlessly without persistent altering of outdated tax infrastructure.
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.
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.