The new GST tax regime, which will replace a myriad of indirect taxes such as VAT, customs, excise, CST, service tax and entry tax with a single tax called Goods and Services Tax (GST), is set to come into force on July 1, 2017. With the changeover to a new regime, it’s not hard to imagine the huge number of modifications a business would have to make to be tax compliant, and the success of GST implementation will heavily depend upon technology infrastructure that business establishments would deploy. While large enterprises have already deployed sophisticated solutions in line with the new tax regime, small and medium enterprises (SMEs) are struggling to find viable tech solutions.
Close to 96% of SMEs will have to adopt GST enabled applications for invoicing, tax filing and other business transactions. For this segment, online tax filing portal ClearTax has launched a multi-GSP (GST Suvidha Provider) taxation solution and the software. The software is equipped to handle over one billion invoices uploaded by business entities of all sizes which will be generated after the GST rollout. The ClearTax GSP has simple-to-use mobile apps, desktop and web-based software, which work offline and online.
The software can also integrate with accounting software for GST filing. While the basic version is free, the upgraded versions are priced from Rs 100 onwards. The company claims that close to 10 lakh Indians filed income tax returns through ClearTax in FY 2014-15, and it marked 400% YoY growth in the same fiscal. It also claims that via the portal or its mobile app, the returns can be filed in 12 minutes against three hours via a traditional medium.
ClearTax is not the only company eyeing a huge business opportunity in the GST rollout. Companies such as SAP, Tally ERP, Deloitte and others are looking at all the tax-paying segments of India to reap the revenues. In terms of mobile app space, the app providers offer various GST apps to ensure easy adoption of the technology to become tax compliant. Two recently launched GST Apps are CAClubIndia’s GST APP and Deloitte India’s GST Connect.