whenever a positive development takes place in coming months also so that one is taken through this Biggest Tax Reform in our Country since Independence!
GST is not just a change in tax, it is expected to have a far reaching impact on each facet of business operations in the country such as pricing of products and services, supply chain optimization, IT, accounting and tax compliance systems. It will impact the tax structure, tax incidence, tax computation, tax payment, compliance, credit utilisation and reporting, leading to a complete overhaul of the current indirect tax system. On a rough estimate the corporates are expected to reduce their material cost by minimum 1% and logistic cost by 10-15% provided proper GST structure is established. It means lot of money provided the benefits are not passed on to the customers. It is expected that the country’s GDP will increase by 2% on implementation of GST.
The question today is that how are Corporate Expected to Get GST Ready from Now. In this regard we propose a Seven Point Module as follows –
1. Initial Across The Boar User Training not only for Finance Professionals but also for Non Finance Professionals
2. Assessment of the impact of GST on different business functions including quantification of impact on pricing, incentives, profitability, top-line and cash flows
3. Representation before Authorities the likely GST provisions which could be detrimental to the business of a company
4. Performing calculations of potential GST impact on business (on “as-is” basis) by using the GST Draft Law and Processes available.
5. Implementation by aligning the ‘Optimum Model’ to help ensure smooth functioning of the selected operating model option.
6. Transition Management
7. Undertaking detailed planning of activities in co-ordination with various work streams.
About The Author
Mr. Timir Baran Chatterjee is a First Class B.Com (Hons) Graduate, First class in M. Com, Fellow Member of the Institute of Company Secretaries of India, a qualified Cost Accountant and a member of the Institute of Cost Accountants of India. He has also done MBA on International Business from Indian Institute of Foreign Trade ( IIFT), a deemed Central University and the Research wing of the Ministry of Commerce and Industry, Government of India covering inter alia International law, International Finance, International Taxation, Global Economics., WTO and Derivatives as the major subjects.
Mr. Vivek Jalan is a Fellow Member of the Institute Of Chartered Accountants of India (ICAI) and a Certified Expert in Indirect Taxes in India. He has worked as a Finance Manager in ITC Ltd. and Chief Compliance Officer with IntraSoft Technologies Ltd.