The past few months have been a roller coaster ride for the Indian economy, all thanks to GST, a revolutionary tax reform post-independence. Yes, GST (Goods and Services Tax) is all set to unify as well as simplify a wide range of indirect taxes levied during the various stages of selling, manufacturing and consumption of services and goods across the country.
And as we know that humans since time immemorial have shown resistance to any form of change, but those in favour of the new tax regime believe that it is set to break free the country from the clutches of bureaucratic paperwork and simplify complex taxation processes.
Instead of the tax rates that are currently levied by the State and Central governments, the GST bills propose some fundamental changes by the introduction of input tax reform. After the GST rollout, enterprises will be eligible to claim credits on taxes on the basis of the amount they have already compensated towards GST during the procurement stage. Thus, GST makes other taxes levied by the state governments such as Excise, Octroi, VAT, etc. obsolete by introducing a unified and consolidated tax system.
What’s in it for the Logistics Industry?
By merging the various indirect tax levies in the supply chain ecosystem, GST is set to curb optimise decision-making, reduce transportation duration and pave room for consolidation in the warehouse domain as well. Nevertheless, whilst the logistics’ industry aims to reach the pinnacle of expansion and growth post the GST rollout, businesses in this sector still require initiating process-level redevelopments to adopt the new tax reform.
At present, a number of businesses operating in the logistics’ and shipping sector have been embracing ERP software solutions to automate key accounting processes. Though the taxation departments and authorities since long have been utilising technology for administering taxes, changes in regulations over the last few years have made it mandatory for businesses to redefine invoices and tax procedures thus, triggering the need to have an advanced and robust ERP software for full compliance. Sage ERP software not only will help a logistics’ company to be GST-compliant, but will also support the tedious inventory and supply management functions.
Technology is sure to a play a pivotal role when it comes to setting up all the required tools for a smoother GST rollout. Tech-enabled compliance will help taxpayers in automating invoices right from the ERP software. No need of logging into multiple portals. In addition, tech-enabled compliance will enable efficient returns filing, tax administration, auditing, and much more with minimal human intervention.
As GST guarantees total overhaul of the existing taxation processes, the leap might prove a bit difficult for businesses that still use redundant or outmoded enterprise resource planning systems. Thus, an increasing number of enterprises would be on the lookout of GST-enable ERP solutions in the near future.
As it is our natural instinct to resist any kind of change, the countrywide GST implementation is sure to affect everyone in the ecosystem. Keeping aside all the anecdotes, GST is set to make the country’s economy transparent particularly the logistics’ industry, as it will make it more efficient. To conclude, we can say that businesses operating in the logistics sector ought to deploy GST-enabled ERP solutions to adopt the change.
To learn in detail how Sage ERP software can help your logistics’ business to be GST-ready, contact us here. Sage Software Solutions (P) Ltd. has been designing and implementing automated ERP solutions for over three decades. You can also SMS SAGE to 56767 or drop us a mail at firstname.lastname@example.org for free demo and consultation.