In the beginning, the roll-out of the Goods and Services Tax Act has put a tremendous pressure on the shoulders of the businesses. And the most striking factor about the regime was that the intricacies of the regime weren’t affecting any specific industry but all. So, had the struggle of the businesses helped them overcome the complexities? Actually, the problems still exist but their strain on the businesses is less. However, the more the regime will evolve, the more it will become easier to comply with. Have you ever wondered if there’s a simpler way to cut short GST’s tediousness?
Fortunately, there is a way even if you haven’t pondered. The technology played a relevant part in dragging GST from the abyss of the dilemma to an orb of ease. However, the compliance-easing measures of the government seem to be focused majorly on the MSMEs. Whereas the big market players still outcry for the relaxation. And if the statistics are to be believed, the small scale industries account for the highest collection under GST. Most importantly, the government has also decided to put the petroleum industry under the scrutiny of the Goods and Services Tax Act. Well, it’s a big industry and needs to be streamlined to reduce the evasion practices.
The concerned MNCs
The effect of the GST drew MNCs with force in the pond of problems and taxation-issues. The MNC of professional services network, PwC condemned the manner in which the government is dealing with the compliance related issues. Because the businesses haven’t been able to incorporate the one-time dispute resolution system suggested by the government under GST. Undoubtedly, if you will have a long pending tax litigation with the government, you’d also start losing your mind. But besides chewing upon about the complexities of the regime, the MNCs consider the implementation of GST in India as a big achievement.
Since the technology part plays a great role in the entire taxation in India, it has also believed to sort MNC’s worries out. The GST reporting tool has the ability to turn the visualization into reality. The government envisioned that:
1. The tax evasion will terminate- Even though the earlier taxation system was easy for the taxpayers, the evasion measures were excessively high. This ruled out the idea of the government to not change the taxation regime. Even making it strict didn’t work. Finally, the implementation of GST choked almost every taxation fraud existing in disguise in the market. And as per the current scenario, both the technology and the government are leaving no stones unturned to stop evasion.
2. The taxation will be unified- The government came up with the idea of one tax one nation. But neither the idea of the taxation nor the strategy behind it sounded genuine to the taxpayers of the nation. The multiple tax slabs in the regime befuddled the people in order to match the transaction with the applicable tax slab. If this problem wouldn’t have been resolved by GST software, then the government would have faced a tremendous revenue crisis. And stating the obvious, none of you would have stood strong in the favor of the regime. By happy chance, the technology vindicated the taxation process.
And these envisioned parameters have reached new heights as the GST reporting tool assists more than five million of the taxpayer of the nation. But still, there are some businesses that are getting involved in the fraudulent measures. The mismatch of the values mentioned in the GSTRs with that if the supply invoices, has become one of the major challenges for the government to overcome. And since the businesses are still trying to manipulate the scheme, the problems like delayed refunds and invalid multiple registrations are not leaving the chase.
The uncompromised role of software
Out of all the advancements in the area of taxation, only the software has the capability to streamline GST and make it business-friendly. And by streamlining it doesn’t mean making amendments in the regime but to make the overall taxation as simple as possible. When asked on the personal levels, the people have demanded more for the automated processes. The lesser input they’d have to give in doing taxation, the more they can focus on their businesses. This drill to function cooperatively with GST is completely inferred by the software providers in the market.
The role of the Goods and Services Tax in the eradication of the evasion practices from the nation is irreplaceable. But it should not be in the terms of making the taxpayer or the people in general of the nation uncomfortable. However, the frequency of the government should match with that of the people. And when this balance will be obtained, the nation will enjoy an evasion-free taxation.