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Exporters May Face Liquidity Crunch under GST

GST India, designed specifically keeping in mind the transportation of goods, is a blanket tax regime, implemented across the nation, impacting almost everything related to the operations of goods and services. Although, GST is a favorable move for national transporters of goods and services, however, it might burst the bubble for international exporters.

Federation of Indian Export Organizations(FIEO) on Friday, said “Goods and Services Tax (GST) will severely dent the liquidity situation of traders and, the compliance cost of merchant exporters may go up” according to the apex body, export competitiveness of domestic players may fall by about 2%, pertaining to liquidity problems.

Prior to GST, exporters used to avail exemptions from tax duties. However, Post GST, they now have to first pay the GST sum and then subsequently seek refund. Due to this refund mechanism, FIEO stated that working capital of about 1.85 lakh rupees, of exporters might get stuck with the government. The blocking of this amount would push up the manufacturing cost of exporters as they have to borrow more from banks.

Although it is difficult to say whether the exports under the new tax regime would suffer or not,  but it is proclaimed that it will take at least 5-6 months, in order to adjust to the new regime as there would be teething troubles primarily.

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GST India is a comprehensive tax on manufacturing, sale and consumption of goods and services at national level, under, which no distinction will be made between, goods and services for levying of tax. GST India has subsumed almost every indirect tax, levied on goods and services by the Central and State governments in India.

GST has a G2B portal for taxpayers, to access the GST System, seeking to file their GST returns. However that would not be the only way, for interacting with the GST India Services, as the taxpayer, pertaining to his preference of third party applications, for instance GreenGST, will be able to interact with the GST system, seamlessly, sans any hassle via desktop, mobile and other interfaces.

The Advent of GST has paved way for modern SAAS based software’s, to facilitate your tax filing management. Therefore, to handle the great number of invoices that will be uploaded and GST returns that will be filed, every single day, there arises a great need for reliable GST filing software that will chisel out your GST filing woes, all at once! This is where, innovative SAAS based GST Software, such as GreenGST, wade their way to decongest the scenario of GST filing in India.

GreenGST, a product by Moglix, is a one stop-solution for meeting all your GST compliance needs. We extend our expertise in commerce, manufacturing and supply chain to solve problems related to digitization of supply chain as well as making it GST Compliant. Green GST makes your GSTR filing seamless irrespective of whether you are the buyer or the seller.

GreenGST helps you in reporting, invoice creations, reconciliation and GST filing. Our system will not only keep you GST compliant but it also comes with a dashboard based on daily analytics. It will gently remind you five days prior to the deadlines, so that you can download the report on non-compliant vendors and be safe from the hassle of last minute rush.


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