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2017

Solutions of Top Five GST Challenges faced by Tax and Accounting Professionals

Top Five Challenges and Solutions of GST for AccountantsJuly 1, 2017 is a phenomenal date when India has made a history by implementing ‘One Nation, One Tax’ approach. Yes, GST (Goods and Services Tax) is indeed the biggest reform of our country that brings a few challenges and a lot of opportunities for our accountants. It is considered as a ‘Game Changer’ for Indian business as it will cause a long-lasting impact.

As we are passing through the transition phase from the traditional approach of many destination-based taxes to the one origin-based tax- GST regime, it is obvious that the accountants have to put extra efforts to grab the opportunities.

Let’s have a glimpse on top five challenges brought by GST along with their solutions:

1. Clients are not ready- The first and foremost thing is the lack of preparedness from the client side. The corporate client’s understanding of GST regulations and their impact is at a primary level. Many are still in the registration process.

Solution: Awareness plays a vital role in implementing any tax-related regulation, and GST is no exception. It is better to inform the various industry sectors about the GST impact and how it is going to simplify the tax calculation-related process in the future. Accountants need to start spreading awareness about the importance and benefits of GST.

2. Lack of clarity- Various rules and regulations of GST are still not clear as the categorization of both goods and services is ambiguous. Provisions related to anti-profiteering and an e-way bill, which is designed to track the consignment across states, also have a lack of clarity.

Solution: Accountants should stay updated about the notifications issued by the government on a regular basis. They can use various resources for making their clients understand the rules in a simple manner. It’s easy to stay updated with any accountancy-related notifications with Munimji mobile app.

3. Increase in compliance- Businesses need to file multiple returns after GST is implemented. A minimum of 37 returns to be filed by assessees as per their business model. The client needs to ensuring timely compliance for removing the loss of input credit.

Solution: Accountants need to be more alert in filing the returns of their clients while providing the correct data and reports.

4. IT system preparations- In many cases, the accounting software and business IT systems are not yet integrated with GST provisions. It is, therefore, prepare the IT system for creating GST invoices and fetching necessary reports.

Solution: Accountants can assist the IT people to develop customized accounting software compliant with GST regulations. They can help the techies integrate the concept soon.

5. Lack of skilled resources- Need of re-skilling is must in the GST era. Today, many accountants are either not updated or still in the learning mode. Lack of skilled resources makes GST implementation more complex and adds the confusion among the businesspersons.

Solution: Reputed business accounting teaching firms like Munimji can prepare the accountants for GST and make them updated for this revolutionary tax reform.

Munimji is a well-known accountancy training institute that offers the best-in-class training in business accountancy-related courses along with 100% job guarantee.

 

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