The New Goods and Services Tax return forms might force companies to change the ERP systems

Highlights:

•    The Tax experts had held that the new return systems shall need a lot of details such as purchases from unregistered dealers

•    Rather than the GST returns being the current supplier-driven traffic, starting April next year, it shall become a workflow-driven mechanism

The new Goods and Services Tax (GST) returns are going to be implemented from the month of April 2020. This new system shall mandate to furnish details that might require corporations to amend their enterprise resource planning (ERP) systems.

The Tax experts and chartered accountants (CAs) had stated that the new return systems shall need a lot of details for example purchases from unregistered dealers.

Besides, the bill of entry-wise import specifics and bill of entry-wise purchases from special economic zones (SEZs) shall be required. As of now, there is only one way the details required. Currently, suppliers upload these data, however from April 2020, recipients would also have to upload each of these data.

Rather than the GST returns being the current supplier-driven traffic, starting April next year, it shall become a workflow-driven mechanism.

Furthermore, electronic or E-invoicing for business to business (B2B) transactions shall also be started from 1st January 2020. This will also require changes in the ERP systems towards ensuring that every invoice is tracked by the tax authorities. The move is intended at curbing tax evasion.

Along with the current invoices which are generated on the companies' ERP, the new method shall need automatic uploading of the data on government systems.

Also, it was held that depending on the details required in the new return system, the ERP shall need to be changed.

It would not be something which may require a complete overhaul of the system, however, certainly, some changes shall be required after e-invoicing is applied and more details in GST returns are requisite from early next year.

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Author:

eStartIndia Team