The Goods and Services Tax (GST) introduced on 1 July 2017 is a landmark Indirect tax reform in India’s history and is considered as one of the most significant tax reforms ever undertaken.
Under the GST regime, multiple indirect taxes levied earlier were consolidated in a single indirect tax, i.e., GST. This in turn has required a significant realignment of operations including cash flows, supply chain and logistics, pricing, procurements, accounting and IT systems.
Since its introduction, GST has come a long way in achieving the objective of uniformity in indirect taxes across India, and seamless and uninterrupted flow of credit and ease of compliance through the use of technology. However, considering the scale of the reform, to achieve these objectives there have been multiple amendments to address various situations. These have required businesses to revisit their positions and compliance tools (including ERPs) and processes. The tax authorities have also implemented various data analytics tools to identify miscreants looking to defraud the Government.
We at BDO India have a team of GST experts across our offices to help our clients stay compliant with the updated law without any business disruptions. Our technology tools, developed in-house, help businesses manage their compliances smoothly and in a timely manner.