Select Language

INDIA

2nd Floor, Cyber Ville
Hitech City
Madhapur
Hyderabad – 500081
Call Us: +91 40 – 69000226
Telangana, India
Sales: sales@sailotech.com

USA

8115 Maple Lawn Blvd. Suite 350
Fulton
MD 20759
Call Us: +1 240-786-4500
Sales: sales@sailotech.com

Japan

Sailotech
1204, 1-1-23
Seishincho Edogawa-ku
Tokyo
Japan
Sales: sales@sailotech.com
 

GST

gst-imageGST in India will bring about a change in the tax system by redistributing the burden of taxation equitably between manufacturing and services. GST will enable broadening of the tax base, which will further result in reduction in effective rate of tax. It will reduce distortions by applying the destination principle for levy of taxes.

GST will be a game changing reform for the Indian economy by creating a common Indian market. There would be a direct impact on the taxation structure, tax computation respective payment, compliance and credit utilization, leading to a complete overhaul of the current indirect tax system.

The impact of this new indirect tax regime will be far reaching impacting the pricing of products, services, supply chain optimization, accounting, IT and compliance systems.

 

What could be the impact of the GST on your Business?

Tax payers are required to be GST compliant and further depending on the operating geographies, size and sector, the change would be significant and will require proactive planning with time bound action plan. As part of the preparation for the implementation of GST, organizations/companies need to build the understanding of the policy and the implications. The subsequent transition planning needs to be devised and formulated. Sailotech consulting services can ascertain the transition is success and smooth.

The GST structure would follow the destination principle. Accordingly, imports would be subject to GST, while exports would be zero-rated. In the case of inter-state transactions within India, Integrated GST  would apply in the state of destination as opposed to that of origin.

Is your Enterprise software ERP prepared for transition to the new tax regime?

The GST implementation will affect majority of the business functions including the Enterprise software. The already existing tax localization patch on the ERPs will be nullified and new way of the tax transaction handling will be critical. The primary impact business functions will be:

  • Sourcing – Interstate Procurements, Consolidation of vendors, Custom Duty charges
  • Distribution – Optimization of Supply Chain transactions, Distribution Network structure
  • Pricing and Profitability – Repricing to accommodate tax savings, Margins & Price markups
  • Cash Flow – Improvement as excise duty is removed on manufacturing, Inventory costs
  • Data migration – Existing open transactions and balances to be transitioned to GST
  • Reports – Purchase, Sales & Service registers, Tax reports and Invoice & PO formats
  • Trainings – Employee, Compliance, Customer education
  • Credit tracking – Utilization of accrued Tax credit

Advantages with Sailotech

  • Assess and identify key areas of impact in Business
  • Simulation of scenarios before GST implementation
  • Identify areas of adverse impact and address with contingency plan
  • Address reporting with appropriate formats to the authorities
  • Our certified consultants understand your domain, your ERP (Oracle, Infor)
  • We are already equipped with necessary tools, processes and migration strategy.
  • Our GST Bolton solution – Rapid implementation, Minimal impact and Out of box& easy transition strategy
  • Make your legacy accounting application confirm to GST

Is your sector listed below?

  • Pharma companies
  • Third party logistics company
  • Automotive
  • Manufacturing
  • E-Commerce
  • Small & Medium Enterprises

Contact us for Demo.