How technology has changed tax compliance in the GST era

Terms of use

Terms of Use

The use of this site and the content contained therein is governed by the Terms of Use. When you use this site you acknowledge that you have read the Terms of Use and that you accept and will be bound by the terms hereof and such terms as may be modified from time to time.

All text, graphics, audio, design and other works on the site are the copyrighted works of nasscom unless otherwise indicated. All rights reserved.
Content on the site is for personal use only and may be downloaded provided the material is kept intact and there is no violation of the copyrights, trademarks, and other proprietary rights. Any alteration of the material or use of the material contained in the site for any other purpose is a violation of the copyright of nasscom and / or its affiliates or associates or of its third-party information providers. This material cannot be copied, reproduced, republished, uploaded, posted, transmitted or distributed in any way for non-personal use without obtaining the prior permission from nasscom.
The nasscom Members login is for the reference of only registered nasscom Member Companies.
nasscom reserves the right to modify the terms of use of any service without any liability. nasscom reserves the right to take all measures necessary to prevent access to any service or termination of service if the terms of use are not complied with or are contravened or there is any violation of copyright, trademark or other proprietary right.
From time to time nasscom may supplement these terms of use with additional terms pertaining to specific content (additional terms). Such additional terms are hereby incorporated by reference into these Terms of Use.

Disclaimer

The Company information provided on the nasscom web site is as per data collected by companies. nasscom is not liable on the authenticity of such data.
nasscom has exercised due diligence in checking the correctness and authenticity of the information contained in the site, but nasscom or any of its affiliates or associates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this site. The information from or through this site is provided "as is" and all warranties express or implied of any kind, regarding any matter pertaining to any service or channel, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement are disclaimed. nasscom and its affiliates and associates shall not be liable, at any time, for any failure of performance, error, omission, interruption, deletion, defect, delay in operation or transmission, computer virus, communications line failure, theft or destruction or unauthorised access to, alteration of, or use of information contained on the site. No representations, warranties or guarantees whatsoever are made as to the accuracy, adequacy, reliability, completeness, suitability or applicability of the information to a particular situation.
nasscom or its affiliates or associates or its employees do not provide any judgments or warranty in respect of the authenticity or correctness of the content of other services or sites to which links are provided. A link to another service or site is not an endorsement of any products or services on such site or the site.
The content provided is for information purposes alone and does not substitute for specific advice whether investment, legal, taxation or otherwise. nasscom disclaims all liability for damages caused by use of content on the site.
All responsibility and liability for any damages caused by downloading of any data is disclaimed.
nasscom reserves the right to modify, suspend / cancel, or discontinue any or all sections, or service at any time without notice.

For any grievances under the Information Technology Act 2000, please get in touch with Grievance Officer, Mr. Anirban Mandal at data-query@nasscom.in.

New

See all

No notification found.

How technology has changed tax compliance in the GST era

Foujiya Begum

@foujiya

November 21, 2018

GST

831

The Goods and Services Tax was launched by the government in 2016. GST is supposed to subsume most of the indirect taxes that were prevalent during the VAT era and provide a uniform tax regime across the country.

But how to achieve this? The government came up with the Goods and Services Tax Network (GSTN) which is the technology network to ensure that the transition to the new regime is smooth.

To ensure proper tax compliance, the first step that needs to be taken is calculating the right amount of GST. After this, the new tax regime required the firms and businesses to make sure that there were periodic updates/uploads of sales and purchase data with reconciliation for tax credits and payments. To bring about transparency and minimize tax evasion, there was also a need for reconciliation between supplier and recipient. Thus, tax technology came into picture.

The GSTN is a nonprofit non-government company that provides the shared It infrastructure and service to both central and state governments including tax payers and other stakeholders. It is the backbone of the GST framework. The GSTN provides the frontend services of registration, returns and payments to all taxpayers.

The GSTN is structured in such a manner so that it functions as a single repository of information by storing information from every invoice. Needless to say, a technology ecosystem was required to effectively handle the transfer and dissemination of information. The GSTN intends to fulfil this objective by utilizing a network of GSPs (GST Suvidha Provider) and ASPs (Application Service Provider). The function of GSPs is to act as channels that will help to transmit the information between the GSTN server and the ASPs and to also provide a secure network for it. The ASPs will have the responsibility of performing all the activities that are required to ensure a smooth monthly return filing.

How technology helped large enterprises?

To ensure that large enterprises function smoothly, an ERP integrated GST solution is required to take care of all the GST compliances and so ensure that the business runs smoothly.

ERP has become integral because GST filing requires uploading of invoice and reconciliation of the mismatches. The problem that large enterprises face is that they must deal with millions of invoices and it is almost impossible to upload those manually. Precious business time will be lost to deal with time-consuming GST compliance issues. Thus, the ERP, an optimized automated system to deal with the prerequisites and also for expediting the compliance process, was put into action.

Using ERP will ensure that synchronization of data from the ERP, converting it into a GST supported format, uploading invoice details, rectifying minor mismatches and even filing of GST would be automatically done. When a company deals with millions or billions of invoices, mismatches are bound to occur. If technology (ERP) takes care of the minor ones, then the business can focus on the major value mismatches and correct them to successfully file the GST returns.

The application from ASPs help taxpayers to interact with the GSTN. All they require is a computer connected to the internet so as to upload the invoices. Whether a business runs successfully or not in the GST regime depends on its ability to interact smoothly with the GSTN server. This is where ASPs prove to be effective.

One of the fundamental aspects of GST is invoice matching. GST requires dealing with invoices within a period. This would not have been possible with outdated systems and obsolete technology that were used in the previous tax regime. Thus, there was the need for an intelligent technology that will provide a bulk solution to the mismatches in invoices. This will not only save time but also will help to save considerable resources.

Businesses, in the GST era, require interacting with the GSTN system. This process is made easy by an advanced application that can maneuver the whole gamut of transformation and ensure that day-to-day tasks are performed quickly and effortlessly. Thus, the first step towards achieving compliance would require understanding the importance of technology in the GST regime and wisely choosing the right application for the business.

Thus, businesses should install a good ERP system that is fully GST compliant and which is integrated with an ASP application.

Thus, technology plays a monumental role in revolutionizing and ensuring tax compliance in the GST era.

However, you can visit encomply to take care of all your GST-related problems. Thank you.

Disclaimer

That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.