Introduction of GST in India has made both the customers and traders formed a universal swing, few commodities are charged more than the earlier tax system and few others become cheaper. Few think it’s good for the economy as it encourages investment and few thinks it’s like disturbing clear water in a pond to rouse dirt in it. With an account, for huge country with higher population which still remains on the traditional dairy maintaining for accounts, GST has definitely created hara-kiri.
Traders are facing difficulties to maintain their accounts with respect to GST. They are facing extreme difficulty to overcome from the decades old tax system of India.
GST is an indirect tax system to replace taxes levied by central and state governments. In this system taxes directly put on customers (such as sales tax, per unit tax, value added tax (VAT) is collected by an intermediary (such as a retail store) from the person who bears the ultimate economic burden of the tax (such as the consumer). The intermediary later files a tax return and forwards the tax proceeds to government with the return.
This system puts a burden on traders who were adjusted to direct tax system for years has to put maximum efforts to maintain their records to file the taxes.
The solution to many problem looks very simple after the problem is tackled. The country is heading towards cashless transaction slowly and digital transformation became inevitable for the taxpayers. One may again ask the cost and maintenance of digital trade and the need of expertise to operate digital needs.
Traders can opt for easy-to-work software’s like point of sale, which can cut their work of maintaining each and every step. Software’s helps automation of the billing and transactions. POS eliminates the burden of filing taxes and makes each businessman to stay updated in the GST era.
With introduction of indirect tax revelation GST in India causing a relative disturbance in merchants, accustom to the old tax system and traditional trading system creating a tension in sellers to get adjusted to GST. Lack of awareness and clarity in transitions augmenting their issues. With country slowly heading towards cashless transactions going digital can be ultimate solution, but there can be worry of adjustment and expertise. Opting for software’s that are easy to operate and can automate the process of tax filing can be the solution to stay update in GST era.