We all have been speculating the ins and outs of GST which stands for Goods and Services Tax for a long duration, well things have changed now as this very tax reform has been put into action to cope up with the inflation and ever increasing price related problems. For sure there are a number of people who are praising the actions taken by the Indian government, but there are few who are opposing this tax reform right after the demonetization action which in a way left Indians confused and in a dilemma whether this action was necessary or not. For sure on papers GST sounds like a great option, but in real life will it prove to be beneficial for common people of this country. If you are still confused, here’s how your business needs to change for GST.
Demonetization left common people shocked, but with GST things are a bit different. It is the business owners both small as well as well-established ventures who will feel the effect of GST. There is still confusion on the changes will their business need in order to comply with the biggest tax reform India has seen after independence.
For sure almost every company, no matter whether small or large was complaining that they weren’t ready for such drastic change in tax law, but Indian government’s refusal to make any further delay in the launch forced them to accept and expedite the process. The common belief among business owners that GST will make conducting business easier has acted as a motivation for business owners to accept the tax reform.
Here’s how your business needs to change for GST
• Some necessary changes will be made to businesses operating in India. Small and medium industries which were independent and were used to not follow the procedures and weren’t under the compliance to follow the regulations, will have to take their system online for legally conducting their business. The system that needs to be online should be prepared for invoices, billing, input tax credits, returns and numerous similar actions under Goods and Services Tax. Existing systems require being updated and overhauled, training modules for employees will need to be updated, and SOPs will need revision as per the new tax reform.
• With GST, the mandatory training of the employees or manpower has also been made necessary. Everyone from bottom to the top will need to be trained, for sure the training will vary as per the allocated jobs of the employees, but they will need to be trained in the manner in which respective businesses are conducted under GST.
• The price of products will change to a great level. Prices of some products will go up while most of the products will be cheaper because of implementation of one tax. Now people won’t have to worry about paying a variety of taxes for a single product. This very reform has surely made things easier for consumers as they will get better transparency to the way tax is imposed, you will have to make amendments in the pricing of existing goods and services owned by your business.