October 27, 2020

IT Voice July 2017 Edition

Welcome GST:  “GST will change the way India does business,and  IT business boost after ‘GST.”

“GST is a game changing reform that is widely awaited. It has the potential of adding almost 100 basis points to the GDP growth. Though the near term will see some challenges of implementation, it is one reform that will bring efficiency in the economy and widen the tax base.”
While a lot has been said about GST’s positive impact, its biggest beneficiary will be the Information Technology (IT) sector. The IT industry landscape is likely to experience several new developments after the much awaited roll-out of the GST structure.
GST rates are very positive signal to the industry, and we will certainly be pursuing the basic customs duty case and we believe that these two together, will give an impetus to local electronics manufacturing.
Either the existing regime will continue or the new regime with GST plus basic customs duty will come in, so either ways the industry will not lose out. We’re trying to push for 5 per cent GST but 12 per cent is also a positive decision.
The biggest benefit (expected) for a consumer is that the price of most goods are likely to come down under the GST regime. Various reasons like increased competitiveness, avoidance of tax cascading effect, increased credit flow, supply-chain optimization and savings in transportation costs are expected to bring down the prices in the long run.
That increase’s the purchasing capacity of common man.These factor had 100% had helped to boost up IT sector business.From the point of view of the IT industry (including allied sectors such as electronics and telecom marketplaces), GST can provide a major fillip and competitive advantage once it becomes operational.
It is predicted that GST will generate huge business revenues for both small and big IT firms across the country, as businesses feel the need to reconfigure IT systems internally, at every level—from procurements to audits and from supply chain flow to vendor management.
IF your business earning is not input taxed, it will likely become taxable. There are a lot more issues like this one which may crop up during or after the GST transition. Gearing up for training, and developing compliant IT systems will become imperative for businesses.
Especially, the SME market which is betting big presently on GST for providing the much-needed push to trade from the micro perspective and bringing it on a level-playing field with big industries (by doing away with tax differentiation), needs to have a reasonable IT infrastructure in place in terms of business process reinforcement, tax configuration, inventory data storage, document numbering, data amendments, impact analysis on interfaces, reversal of open transactions, and so on. All these could turn into business opportunities for the IT sector. Its time to support country and betterment for Information technology sector.

Tarun Taunk