The GST is a watershed event for India because it will mark the creation of a single indirect tax system for the entire country. A single indirect tax system creates a single market and along with the free flow of goods and services will be a continuous flow of transactional data. Thousands of businesses will make the transition from the old tax regimes of VAT, CST, Service Tax, Excise and many other taxes to the GST. Getting businesses to make this transition means careful planning and tight deadlines which must be met while business continue under the old tax regime.
The GST will be a data driven tax and everyone has a part to play in this new system. Everyone who sells or buys goods or services has an obligation to correctly report tax data to the GSTN from all their different systems: SAP, Oracle, Tally, QAD, MFG Pro, Baan and so many others all the way down to spreadsheets living on desktops. If all of the data can be gathered together for compliance it needs a place to go which is a GST compliance solution which can manage, transform, file and reconcile all the necessary tax specific data.
enComply is a GST compliance offering which is ready and waiting to accept tax specific data from a variety of different sources, transform the data and submit the tax returns to the GSTN and reconcile data from purchasers. Taxilla is the world-class governance, risk and compliance platform which powers enComply and allows users to collaborate on data in a single location which saves time and money. enComply combines collaboration with powerful data processing and multitenancy which gives your clients the ability to save money on avoiding the purchase and maintenance of hardware for an in-house tax compliance solution.
Even with everything that can be done on enComply there is still a need to make sure data can get from the different systems to enComply. We already offer many different source friendly connectors but as each business is different there can be a variety of different connectors to be created and then implemented.
System Integrators (SI) are getting the same questions every day from their clients
- What do I have to do to get ready for the GST?
- When will my systems be ready for GST?
- How I am going to file my tax returns?
- Do you have a solution to file my tax returns?
The first couple of questions are for the SI to answer but we can answer the last two – enComply. enComply is ready and waiting to accept your data with a variety of different connection options to allow your clients a single place where they can work together among themselves and with tax partners to file quickly and efficiently all the necessary tax returns for their enterprise. Consider that for most businesses which operate in multiple locations in India there are a minimum of three events which must occur in the following month:
- Submit outward transactions – 10th of the following transactions
- Submit inward transactions – 15th of following month
- Complete GSTR3 – 20th of following month
If your clients operate in three different states, then they have 9 compliance events to complete in 20 days and keep running their normal sales and purchasing operations.
System integrators will be busy just keeping the normal system operations running without having to worry about all the work necessary to build and maintain a custom tax solution. SIs depending on their client load could have a variety of different systems at different versions to bring up the required patch level for the GST. Or some businesses could opt to retire systems and undertake migration efforts for the GST and this can create a new set of challenges to have systems fully operational by a GST go-live. Depending on the breadth of an enterprise there could be multiple system transformation projects occurring for different business units with different vendors.
We are interested in working with SIs to create the necessary connections between different source systems and enComply and providing the training, support, and expertise to help you focus on your clients while we focus on tax compliance. SIs can provide the link between the data locked in source systems and the enComply by helping to implement the different connectors which are necessary and developing solutions for different businesses to help move data. Each business has its own unique needs and we want to help you deliver the best outcome for your clients as they transition to GST.
enComply is a new offering from Udyog and Adaequare which have been working in their respective fields of tax and data engineering for over 20 years. We are serious about enabling system integrators help their clients transition to the GST by solving the compliance problem with you.
Second, the Independent Software Vendor (ISV), our enComply offering is hosted on world class governance, risk and compliance (GRC) platform called Taxilla. This is a platform which features:
- Data processing and Transformation
- Workflow and Collaboration
When these features are combined, you have a platform which you can develop applications which can leverage the data within the platform for different customers and you can build new applications for use in the platform to further extend the GST compliances.
When developing for a platform like ours an ISV is given the chance to expand its reach because this platform has the capability to reach millions of taxpayers who will be using this monthly to complete their statutory filings, receive information from tax authorities and work with different tax partners to manage their tax return lifecycle.
SIs and ISVs should reach out to us to discuss partnership, collaboration, and other strategies to help solve the puzzle of how to move thousands of businesses into the GST.
by Anil Kuruvilla.
He is an international Taxation Expert and Chief Content Officer at Adaequare (Parent company of Udyog Software).