GST Enablement & Beyond – Why Companies should adopt SAP Business One?
By Dattatreya R.Kulkarni Posted June 22, 2017 | Benefits of SAP Business One, Finance & Accounts, GST, Management
Every business organization – small or big – has had its task cut out with respect to adopting GST from 1st July. There were, however, some who kept expecting that the date will be pushed forward. Now that GOI has re-confirmed the date to be 1st July, its race against time for many!
Those who had initiated the activity earlier on – mostly large corporates – are geared up to handle this revolutionary change in Indian business environment. Most of them have also advised or nudged or pushed (as appropriate) their suppliers to get ready for GST, for a simple reason that if their suppliers do not follow GST, they stand to lose on the Input Tax Credit (ITC).
For many in the SME segment who are not driven by OEMs, situation is not all that rosy. Barring those where the business owners were following the GST progress closely and taking actions accordingly most of the other SMEs are grappling with the basics (related to GST) as we discuss this topic here. How do they handle the situation now? What should they do?
Should they simply follow what ‘others-in-the-same-situation’ are doing? May not be the best decision – what works for one company may not work for the others. Every company needs to evaluate solutions in line with their current and future business requirements.
Should companies look to take help of information technology? Yes, certainly. GSTN itself is a digital platform and it expects companies to provide them data in digital mode. Not only that; the principle of matching of invoices (your suppliers’) with your purchase entries in order to claim ITC, will require you to maintain details at the smallest level in your records. Such record keeping, timely and accurate uploading of returns is not possible manually.
Should companies look for a ‘GST only’ solution? Certainly not recommended. Reason being GST should not be looked upon from a ‘compliance only’ perspective. Rather, it needs to be looked upon as a fantastic opportunity to assess their readiness to operate in new business environment enabled by GST which makes this one nation of India one market of India. Some of the common leading questions that need be answered by owners of such company could be as follows:
Do I understand the impact of GST on my business to begin with?
What new market opportunities are getting opened up due to GST?
Am I ready to make modifications to my business model quickly to adapt to the new environment?
Can my company handle a much larger and more dynamic market?
How do I compete with regional local parties, away from my existing market?
Do I have an IT system that can make compliance of GST requirements to look like a non-issue? Can this system scale up? Etc.