GST and Automation
The GST law is complex in its various manifestations as applicable taxes for a different type of transactions are quite different from existing laws and there is new provision of input credits being available based on compliance/ payment by the supplier. However, technology can simplify the complexity of GST compliance. Technology is the key for success as GST is a transaction based technology driven compliance which requires matching of credit at various stages until it reaches the end user. The GSTN is not only a ‘Business to Business’ but a ‘Business to Government’ data exchange. The triangulation of Business records of supplier and buyer with GSTN on monthly basis is a fundamental pre-requisite of GST compliance and this makes it imperative to use automation.
Services by CAs in GST, Role of CA’s in GST
Implementation Services
Assessment of various types of goods / services and appropriate classification based on HSN Code / SAC CodeCreation/reclassification / regrouping of Chart of accounts in ERPCreation of Masters & Templates for capturing data including developing Standard Operating Procedures (SOP)Creation, validation & enabling capturing of data for State-wise Input Credit, Central and Inter-State CreditIdentification & reporting additional transactions which fall within the meaning of Supply as per GST laws like Stock Transfers etc.Creation and design of various types of Reports relating to purchases, sales and GSTServices such as data migration, configuring systems as per GST requirements, transition from existing to new systems, MIS for GST for ensuring pro-active compliance, facilitating auto-reconciliations, data integration between Head office and branches, automation of filing of returns, services of GST compliance and related accounting and compliance services
Advisory Services
Relating to interpretation and implementation of law as applicable, eligibility of input credit, etc.Relating to the pricing of the products / services for ensuring prices are competitive.Helping the taxpayers in resolving tax related issues.
Compliance Services
Acting as a mediator and help the taxpayers in registration, payment, submission of returns, etc.Facilitate filing of returns and ensuring matching of appropriate tax creditsReconciliation of books with GST transactions
Assurance Services
For testing of application software including ERP configurations.At pre-implementation, implementation and postimplementation stage including remodelling business structureTesting of application software at different stages such as preimplementation implementation and post- implementation.GST Audit on annual basis or as part of internal audit
Technology and Compliances
Earlier, business embedded technology but in a modern enterprise, technology embeds business as all mission-critical business processes, organisation structure, policies and procedures and compliance requirements are embedded and facilitated through Technology. GST compliance requirements have to be embedded inside technology through different aspects of application software and ASP. Hence, CAs have to understand various layers of technology and more specifically multiple gateways of application software and ASP. CAs can play a major role in ensuring that Technology is effectively used to simplify the process of automating GST compliance.
Critical components of GST
The critical components of GST such as registration, taxability, supply, place of supply, time of supply, returns, payments, etc. are all facilitated and processed through Application Software. Further, the transition to GST requires enterprises to conduct detailed review of existing business processes, system of credits, carry forwards, stock on hand, transactions under processing, contracts to be fulfilled, treatment of refunds, etc. Apart from providing advisory services regarding interpretation and application of GST for the enterprise, CAs can also provide advisory services by proactively conducting a GST impact study. This involves review of how existing business processes and compliance requirements are mapped in the information systems and suggest required changes to be implemented to ensure smooth transition to GST. Further, CAs can also provide detailed recommendations on specific changes to be made in the existing application software to ensure conformance to GST requirements. They can also perform detailed testing of changes in application through the stages of design, development, implementation and postimplementation. Each of these could be a separate or composite assignment. Recommended Articles
Returns Under GSTGST DefinitionWhen will GST be applicableWhat is IGSTGST RateGST FormsGST RegistrationInput Tax CreditGST IndiaRole of CA in GSTAudit under GST
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