As one of the most important tax
reforms ever to be implemented in the country, Goods and Services Tax or GST
plays a crucial role in the Indian economy.While being in the pipeline for a long time the various aspects of GST were weighed and considered to determine its viability and it finally took a concrete shape with its launch on 1st July 2017. The anticipation was that the accelerating impact of GST will also decipher the system of indirect taxation in India. Starting from the humble startups to the hulking MNCs, every enterprise diligently waited for the government to roll out GST. In the long run, the new tax regime is expected to impact the different sectors of the trade industry positively. The sector that stands to benefit the most from the GST is B2B e-commerce and there are enough reasons why. The simplification of logistic decisions owing to the new tax law will even simplify the discussions you have with GST consultants in India.
While being in the pipeline for a long time the various aspects of GST were weighed and considered to determine its viability and it finally took a concrete shape with its launch on 1st July 2017. The anticipation was that the accelerating impact of GST will also decipher the system of indirect taxation in India. Starting from the humble startups to the hulking MNCs, every enterprise diligently waited for the government to roll out GST. In the long run, the new tax regime is expected to impact the different sectors of the trade industry positively. The sector that stands to benefit the most from the GST is B2B e-commerce and there are enough reasons why. The simplification of logistic decisions owing to the new tax law will even simplify the discussions you have with GST consultants in India.
Implementing GST will definitely
result in a positive upshot for the sector of e-commerce as it will be
applicable across all the states in India accounting for the manufacturing,
consumption and sales of various goods and services. The fact that this tax
regime converts the country into a unified system of taxation is particularly
suitable for the e-commerce industry. GST replaces quite a few indirect taxes like
the central sales tax, the central excise duty and the central VAT among
others. While these taxes are stamped out, there will be a dramatic reduction
in compliance cost which will result in the optimization of B2B e-commerce
operations as the seamless trade between the industries is encouraged.
In India, the absence of specific tax law to regulate the e-commerce industry led to a host of complications as it was necessary to comply with different laws for different states. However, after GST registration, the companies in the e-commerce industry will be free from dealing with the plethora of complexities resulting from individual state tax laws. In fact, post-GST, the tax distribution is being streamlined for the benefit of the Indian economy. The way B2B e-commerce industries used to be encapsulated by the constraints of tax laws in individual states is something that they can forget under GST. The introduction of GST means that the companies can now focus more on sourcing and warehousing depending on the implications of taxes rather than the strategic considerations of distance and convenience. Here are some of the key points to remember regarding GST audit and registration:
1.
You should make sure that you register for GST on time.
2.
Make sure that you plan your warehousing and logistics requirements
carefully.
3.
Adopt modern technologies and platforms that will help your business to
comply with all the GST norms.
You can always find reliable GST consultants in
India through reputed companies and online platforms which work with qualified
professionals who are experts in handling all tax-related issues of both
individuals and companies.
