GST estimated to simplify the Indian tax structure is expected to show an enormous impact on many industries. It has been anticipated that the major sectors likely to be wedged include the IT segment offering amenities such as software development, mobile app development, website design and more.
The major barrier is to synchronize between tax professionals and the technology groups in leading and amending the IT systems. As the GST rules keep revising the ERP software provided by the IT majors has to be remodelled. Experts say that firms are now hugely concerned to update their tech frame to implement the GST (goods and services tax).
Overhauling the Enterprise Resource Planning (ERP) business-management software to house the intricacies of calculating GST is the smart move. ERP aids monitor and manages everything in an organization such as HR functions, finance, and supply chain. The whizzes in the Indian ERP space comprise SAP and Oracle.
Firms will now have to set up teams that would include a tech expert, an indirect tax expert, a finance department professional and move on to an innovative system where there is an association between every entry made.
For the IT hardware firms, the revised GST system appears to make monitors much adored. It has been foreseen that 18 per cent tax will be levied on personal computers and 28 per cent on monitors which is a big hit local concerns. Due to the hike in taxes, the price of monitors, printers, data cable will certainly be on the rise.
The government has recommended a dual GST framework with the intent of protecting the financial liberty under which State GST, as well as Central GST, will be relevant for every supply of products. Although very simple at a basic level, the IT divisions may have some daunting changes that need to be regulated.
Nevertheless, it is natural for some teething issues. But once it all settles down there will be substantial gains from GST in the progress of trades and the Indian economy.