The implementation of Goods and Service Tax (GST) is very close to become a reality. The new taxation regime would be rolled out from 1 July, 2017. However, enterprise technology leaders have to ensure three critical parameters are taken care of if they wanted a seamless migration to GST.
Addressing a gathering of top CIOs in an event organized by Indus (SAP User Group for the Indian subcontinent) in Delhi, Prakash Kumar, CEO of GST Network (GSTN), said that in terms of readiness there were three things to taken care on the GST portal — registrations, payments and returns.
“CIOs need to ensure that the system is able to generate the invoice platform. The system should be able to categories the type of supplies under different sets— business to business, business to consumer — and how to take care of credit and debit notes. Moreover, the CIOs will have to identify the offline tool or the online mode,” he said.
“By now we have enrolled 60.5 lakh tax payers. For the remaining ones, the window will re-open from 1st June till 15th June. The system is expected to process 3.5 billion invoices every month” Kumar said in a discussion moderated by Vijay Sethi, CIO, Hero MotoCorp.
But what if the organizations don’t enroll?
“In such a scenario, the details of the particular organization will not be registered with the system and that organisation will not be able to do any transactions on portal,” Kumar said. It is, therefore, important that the organisations not only activate but also complete the enrollment form and sign.
For payments, organisations can use both debit and credit cards. A few more modes are being added.
The GSTN has launched the beta version of the network in May.
“We did individual integration, testing and the Beta launch for payments was done from 2nd to 18th May. For the first time, we have introduced digitally signed, electronically generated challans in all modes of payment,” Kumar said.
Returns will be created based on the invoice data and some other data provided by the taxpayer.
“The Government has now simplified the advance part; for large number of users who are not using SAP or Oracle, we have developed an offline Java tool which picks the data from excel,” Kumar said.
The tool is available to micro, small and medium enterprises for uploading invoices and filing returns.
Kumar revealed that the system can go up to 1.3 crore tax return without any software upgradation.
The event was organized by Indus spearheaded by its 3 board members Chander Khanduja – CIO Luminous, Atul Govil, CTO at India Glycols; Umesh Mehta, Sr. VP & CIO, Jubilant Life Sciences.