GST is a revolutionary step that has been taken by the Indian Government. It is expected to change the way businesses are done in our country and radically it would bring growth, and prosperity to our country. The major difficulties would be faced by the accounting professionals who render services to businesses as they have to learn new taxation rules and regulations. In spite of the difficulties, they will get a lot of brilliant opportunities to make the world digital and contribute towards Indian economy. Though the larger businesses or industries were acquiring professional services, after the GST implementation the smaller or medium sized enterprises, companies or industries are also looking for professionals or Chartered Accountant who can handle all their tax-related issues and calculations using various GST tools including GST calculator and software. This generates a big opportunity to all the accounting professionals or Chartered Accountants that comes with a lot of challenges. The CA’s, on the other hand, who fail to fulfil the requirements of the client could lose the substantial market share. Therefore, it’s important to have a full-fledged knowledge of each segment and domain of the GST to make sure you can fulfil all the requirements of your clients with satisfaction.
In this post, we discuss the impact of GST on the life of Chartered Accountants. Let’s take a glance.
Consolidation by Indian Government
The Indian Government has integrated direct and indirect taxes at the administrative level with plenty of inputs provided by the authorities. Sales transaction other than the income tax can be tracked easily through the assessments of VAT and excise duty. Therefore, such transactions can be claimed for availing the benefit of Input Tax Credit. The dual control of State and Central Government on the taxation will definitely result in the cross informational exchange at all levels. Taxpayers would want to safeguard their positions by availing the professional accounting services for these two types of taxes under the GST.
Response of CAs towards the Big Change
There are several things that need to consider after the implementation of GST. Previously, everything accounting, commercial, logistics or any other related industries were taxed according to the multiplicity of the taxes. Now, these systems have been changed and everything has been designed according to the GST which has replaced all the indirect taxes. Therefore, it is imperative for all the accounting professionals to understand the new taxation regime and the new legal concepts related to it. The CAs must be capable enough to handle all the requirements of their clients and unlearn the old system. CAs who have just started their career, it is a big opportunity for them to grow and help others for the new taxation system.
There are a lot of professional opportunities for the new CAs over the non-qualified operating consultants because professionals know how to operate the GST-related tools such as GST calculator and software. They help their clients from registration to tax filing and claiming inputs for the same. Due to the merging of central and State government, there will be merging opportunities for the CAs to learn about the single government and the taxed levied by them on the supply of goods and services. GST can have several benefits to CAs which can be classified according to the post and pre-GST effect.
The CAs need to focus on GST preparedness of clients, specific areas of work which are as following:
- They need to understand the legacy taxation system at their client workplaces to make their business GST compliant.
- Strategic plans need to be understood and prepared for commercial as well as logistic requirements of the client.
- The entire accounting system needs to be changed or replaced with a GST software to suit GST requirements.
- They need to prepare the staff, management and existing client and need to offer trainings to make them understand the requirements.
After GST implementation, there will be host of opportunities opened for CAs and accounting professionals such as:
- To make the business understand about the GST compliance and the necessary documents they need to submit during registration under GST.
- To inform people about GST and advise them according to their business.
- They need to make sure that there are minimum credit leakage for the client’s business.
The Bottom Line
The scale of opportunities for the Chartered Accountant and accounting professionals will be very high and demanding after GST implementation. That’s the reason, professionals need to start paying attention towards the new taxation law and advice people to apply for GST in the initial phases if they deal with the supplies of goods and services.