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About GST and its Implementation

About GST and its Implementation

GST (Goods and Service Tax) is a single, integrated and indirect tax for the whole nation, which makes India one unified common market. One of the major sectors that will be impacted by this is the IT sector with services like software development, website design, mobile app development and much more. Some of the leading IT firms like Kentico, Dynamics CRM, Dynamics NAV and Sitefinity will be implementing GST in their software. Therefore, the IT sector will have some formidable changes, which needs to be tuned in to.

GST Implementation will Impact the IT sector in five ways

Tax Rate

The service tax rate for the IT sector was 15%. But, the recommended revenue neutral rate is at 15-15.5 % and the standard rate will be around 17-18%. Hence, the cost of IT services will increase, especially for the end customers, who do not claim the tax input credit.

Business Process Change

Most of the IT companies were registered only with the central Service Tax authorities and all the accounting and billing tasks were carried out from a single location. Under the GST system, it is mandatory for all the service providers to obtain registration for all the states in which they have customers. 

eCommerce sphere

GST will increase the administrative costs for the eCommerce traders, since they have a number of sellers on their platform, it will significantly increase the compliance burden. Small sellers will be facing issues like cash flows and will be claiming refunds on the tax paid on inputs, but the eCommerce platform may not support this. The tax collection at source guideline will increase the documentation and administration workload for eCommerce organizations. 

Compliance

The GST law will recognize over 111 points of taxation that means IT organizations that provide services all across India will have to seek out for registration in as many as 37 jurisdictions, which includes 29 states, 7 union territories and the center. This implies that IT organizations should get registered and file compliance reports in as many as 111 points.  

Gushing effect of taxes

The GST system will effectively address the gushing effects of taxes. All the traders that come under the GST, will be eligible to avail the credit of services like the Annual Maintenance Service contracts. 

Looking forward

Even though the new provisions under the GST system like the clarity on electronic download classifications will reduce the hassle of conducting IT business, but there are still many concerns especially tax exemptions that has to be addressed.

Kentico GST Upgrade

The implementation of GST was announced on 1st April, 2017 and Raybiztech is ready with the changes to connect Kentico to India Goods and Service Tax.  Goods and Services Tax, commonly known as GST, is an integrated indirect tax, which has replaced and subsumed all other indirect taxes on goods and services currently prevailing in our country since it has come into effect from 2017.
 
Now, it has become inevitable for small as well as big companies to transform themselves to become GST compliant. Raybiztech can help you to comply with GST Law by migration and encapsulation of operations, systems and process in the new IT system, which needs ground work and planning to comply with the GST Law.

Raybiztech has come up with exclusive GST patch in Kentico solution, which will enable you to carry out your business without any hassle. This means you will just have to migrate your Kentico Solution to the latest one.

Dynamics CRM GST upgrade

Raybiztech will provide a simplified and flexible process to connect Dynamics CRM with GST. For a smooth transition to the new GST system, we will migrate and encapsulate operations, processes and systems. A smooth transition to the new GST regime will require several things:

  • A transition roadmap.
  • Changes in business processes, so that they are aligned with the new tax system.
  • An update of Dynamics CRM to meet the proposed structure. For example, the program must support model creation, definition of business rules, and mapping of models with business rules
  • Preparation of various scenarios for the design and application of GST.
  • Constant implementation.

Raybiztech has come up with an exclusive GST patch in Dynamics CRM, which will enable you to carry out your business without any obstacles. This means you will just have to migrate your Dynamics CRM Solution to the latest one.

This law will be introduced by the Indian Government by September 2017. However, it is a daunting task for companies to completely transit to the new system in a short span of time. So, this is the right time to get support from Raybiztech to unveil the benefits of GST. 

Dynamics NAV GST Upgrade

Raybiztech can help you to comply with the GST law by upgrading Dynamics NAV solution, which will enable you to run your business smoothly and without any obstacles. 

Currently, it has become mandatory for all the small and large companies to comply with GST. Raybiztech can help your organization to comply with the GST law by migration of process, systems and operations, which requires a lot of ground work and planning. So, all that you have to do is migrate your existing Dynamics NAV solution to the latest one.

From September 2017, it will become mandatory for all the companies to completely transit to GST. Raybiztech can give you timely support and delivery to connect your Dynamics NAV solution to GST.
    
For a smooth transition to GST Raybiztech will undertake the following tasks

  • A transition roadmap.
  • Amendments in business processes, so that they align with the new system.
  • An update of Dynamics NAV to meet the proposed structure. For instance, the program must be supporting definition of business rules, model creation, and mapping of models.
  • Preparation of various scenarios to design and implement GST in the existing Dynamics NAV solution.

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