In India, technology in taxation system was adopted by the Government in 1990s, when different computer systems were being integrated primarily to automate tax calculation and account keeping. But, in the current taxation system, detecting tax evasion, and loss of tax revenues, duplication and fraudulent claims on input tax against the liability of the seller, and also sellers not furnishing their tax liability are some of the challenges faced by the Government. Also, with billions of invoices to be matched on a monthly basis, India needs a taxation system with an efficient and robust IT infrastructure, that can ensure accuracy through real-time invoice matching capabilities.
In order to overcome this, the GST regime which began on July 1, 2017, has introduced a seamless, and robust state-of-the-art IT infrastructure GSTN server, which will ride on the strength of technology. Its core services will be automating registration, return filing and payments; data sharing between GSTN and tax administrations will be near real-time; integration with various external stakeholder systems will be achieved to minimize data entry and for quick validation. All these are expected to bring serious benefits not only to the tax administrations but also to the taxpayers, with little or no human intervention.
As this new wave of tax system is being implemented in India for the first time, there are various factors that businesses should adopt to welcome GST practices. Businesses must move from their current system to an upgraded, robust GSTN-enabled business application or accounting software such as GreenGST. Software such as GreenGST, will ensure:
- Businesses can interact frequently with the GSTN system.
- Invoices to be uploaded on the software.
- Every line item in an invoice to be recorded separately.
- There will be a correlation between every entry.
- Invoice matching and other compliance related activities can be achieved.
- Speed and accuracy will both be at par in this accounting software.
- All tax related tasks ahead will become seamless and efficient.