The GST platform will help SME to large suppliers and buyers in filing indirect taxes. Ratan Tata backed B2B commerce start-up, Moglix, has launched a GST (Good and Services Tax) technology for the manufacturing sector. Now, SME to large suppliers and buyers can use Moglix’s GST platform (business.moglix.com) to file indirect taxes.
Recently, the company partnered with a couple of GSP applicants to demonstrate its GST technology to the GSTN (Goods and Services Tax Network) panel for taxpayers and businesses to achieve 100% compliance.
“Taxation and compliance has been a long-standing pain point in the ecosystem where easy and simple technology will help Indian industry scale up significantly, to compete in the global arena”, said Rahul Garg, Founder and CEO, Moglix.
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Indian manufacturing is a large sector ($300B) accounting for 17% of the country’s GDP and is a very complex domain from an indirect taxation perspective. Today, the sector is plagued with myriads of taxations like SVAT, CST, Excise, CENVAT etc., and GST is going to be a welcome change with significant improvement on ease of doing business, said Moglix.
“We believe that GST shall fundamentally redefine the B2B commerce in the country, which in the past has been plagued by the multitude of state and central compliances. Moglix aims to enable a large section of manufacturing sector to smoothly migrate to the new regime. We dream of supply chain where we will achieve 100% reconciliation of goods, services, Information, payments and taxation, with highest standards of quality, cost and delivery,” said Rahul.
According to B2B e-commerce firm, the GST will impact manufacturers in multiple ways; first and foremost, it creates a single/central technology infrastructure for indirect taxation for manufacturers. Second, it enables a 100% reconciliation of the tax flow across the entire value chain in a time bound manner. Third, the tax ERP of every organization will now be maintained centrally inside the GSTN system. These changes shall enable India to get rid of tax leakages in any shape or form in the future and give rise to a true white-economy.
Moglix has raised Series A and Seed funding of Rs. 38 CR from venture capital firms like Accel Partners, Jungle Ventures, SeedPlus and Venture Highway. The company is backed by Ratan Tata, Chairman Emeritus, Tata Sons as an investor. Recently, SAP Labs identified Moglix as its start-up tech partner for shaping B2B commerce in India.