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The
Indirect Tax collection system in the country has completely restructured. The
long pending demand of ‘One Nation, One Tax’ was finally realized now, and the
country is consolidating on the economic growth.
With the help of GST, the prime objectives that the government wants to achieve
are:

Increase the Tax
collection
Ease of the taxpaying mechanism

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In
the current taxation system, data’s are flows in one direction to the
Government, which is described as a Business to Government data flow. 
With the use of information technology, the time and cost have been reduced
significantly while the accuracy of compliance greatly enhanced. Using the
technology for compliance has been already started in India. In the early
1990’s taxation departments have begun to use technology for tax
administration. But this was only as a backend mechanism. A significant change occurred
when online filing of returns was introduced. Because of different computer
systems being integrated, thus authorize taxpayers to directly interact with
the tax department.

Enterprise Resource Planning and GST

In
the previous systems, the government has not
been able to detect tax evasion and loss of revenues. Its daunting task to track
the input claims against the liability of the seller. There are also a lot of
cases of duplicate claims on input tax, deceptive claims, input tax claims that
disproportionate with tax liability declared by the seller, or seller who has
not provided his tax liability.

 

In this process, the
stumbling block is co-ordination between tax experts and the technology teams
in introducing and tuning the IT systems. In most cases, some of the ERP software’s
that were provided by the IT companies has to be redesigned as the GST rules
keep updating. Companies are mainly upgrading their enterprise resource
planning (ERP) — a category of business-management software to accommodate the
complexities of calculating GST. Enterprise Resource Planning is software that
helps companies manage everything in the organization including supply chain,
finance and human resources.

 Many
companies will have to move from their current system, where every transaction
is recorded separately. Companies will have to move to a system where there is a
correlation between every entry. Invoice uploading and accordingly the
reconciliation of mismatches is an integral part of GST filing. Large
enterprises deal with billions of invoices, and thus, uploading invoices
manually would be impossible. Moreover, the number of mismatches occurring
could be large. The large enterprises cannot afford to lose precious business
time to sort out minimal and time-consuming GST compliance issues. They need an
optimized automated system that will deal with the prerequisites and expedite
the rest of the process.

For the enterprises, ERP
integrated GST will take care of all their GST compliances, ensuring zero
disruption to the business. Synchronization of data from the ERP, converting it
into a GST supported format, uploading of invoice details, reconciliation of minor
mismatches and filing of the GST, everything will be automated. When billions
of invoices, of the buyer and the seller, will be correspondingly matched,
numerous mismatches will occur. Some could be a minor value, while others, a
major value. The businesses will require an application that will correct the
minor value mismatches automatically according to customization, and an
efficient bulk-reconciliation tool. Such a tool will help in saving pivotal time,
as the businesses can concentrate on the major value mismatches and mend them
to file acceptable GST returns

Goods and Services
Tax Network (GSTN) 

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