GST (Goods and Services Tax) has come a long way even after facing a lot of problems. The government of India took a very important step by introducing GST in the country in the field of indirect tax reforms. It is very important but it has even affected all the sectors of the Indian economy in a positive way as well as in a negative way. The companies which deal in goods, observe stake’s hike while coping up with the GST compliance process. Warehouses, Supply chains, retail, logistics, as well as the transport companies and distributors might face a great effect if the GST returns are not filed correctly and are not on time. All the links are interconnected with each other and if even one link gets interrupted then the entire value chain of supply will be disturbed.
Before GST was implemented, together with supply chain, warehousing and logistics industries were not systematic and were disintegrated especially because of the mismanagement of the infrastructure. But after the implementation of the GST, the rules for the industries and businesses have turned upside down in a positive way i.e. it has the opportunity to increase productivity via automation. Simultaneously, the businesses that are lacking behind in automation and tech are facing problems as they are lagging behind their rivals.
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Earlier, if the server had an issue or was down, then the people had to wait for more than 30 to 40 hours at the check posts. GST has played a very important role in reducing the efforts of the people by clearing the lengthy processes and minimizing the complex paperwork which was done on many interstate check posts. So to its solutions, the e-Way bill was introduced. It is a mechanism of self-compliance which helped in minimizing the time that was wasted at the check posts. As per the World Bank reports only in logistics, the companies save around 30 to 40 per cent if the e-Way bill and GST processes are implemented properly, correctly and on time.
E-commerce websites are making changes in itself and are growing day by day due to which the customers are expecting a lot. And one among the change is the one-day delivery of the product. Because of the changes, the people attract towards the e-commerce sites due to which the trending products just go within a day instead of a month or months. So for this high demand, even the supply chains of the companies must be quick to stand up to the expectations of the customers. For this to happen, the supply chains have to keep a track on the inventory during the delivery of the product.
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To minimize the cost of carrying and to save economies of scale, the best way is to keep the stock of an inventory in a central warehouse. This must be done because if there is a huge demand for a product then the goods can be gathered and can be out of the delivery as soon as possible. But, if the manual GST compliance causes any problem then the supply chain cannot move further. Tax automation is the process that helps in keeping the supply chains smooth.
Before GST it was very difficult to choose the location of the warehouses as the state boundaries acted as the barriers. But after GST, the companies had the rights to choose the transit routes and the locations of the warehouses. This became possible because the GST has converted the divided market of India into a single market. This can be said because a new trend has been started of “mega” or “mother” warehouses as well as the smaller depos. The depos are shrinking day by day and it has become easier to locate them as it is being constructed near to the customers. GST has played a vital role in relocating the warehouses from far places to near the customers. GST automation is mandatory to get the complete benefit of this new system.
GST is very popular because of its procedure-driven system in which time and correct compliances are the secrets of its success. Checking the compliance with GST is an expensive matter, although the cost of carefree compliance, in the long run, is high.
The mixture of GST and non-compliance can hugely affect businesses. The businesses must focus on the late fees and penalties as well as on the compliance ratings. The two systems that confirm the timely compliance and the position of the companies for higher compliance ratings are the “Real-time technological solutions” and “automation of tax compliance systems”.
Technology and advanced equipment are chosen to bring more accuracy in these areas which also helps in making them systematic and also streamline while providing opportunities to the existing players for their growth. At the same time, it also opens the door widely for the freshers. Additionally, the companies are practising the habit of delivering the product on time and for this, they have to automate e-way bill and GST compliances mandatorily.
The main aim of the e-Way bill system when it was implemented was to keep control over the tax evasion so that the revenue collection of the government could increase. As time passed by, the process for generating the GST e-Way bills became easier.
Earlier, the e-Way bills were generated or cancelled online through government websites. Nowadays, the E-Way bills are generated via Android App, SMS as well as by the site-to-site via through API.
If the businesses fail to generate the e-Way bills then the reputation will be on stake along with the cash penalties as well as it will also affect the other GST assessments. So the solution for the problems like ignoring the procedural noncompliance penalties, guaranteed quick delivery of goods, and benefiting businesses in several ways is the “automated solutions technology”.
Maybe some business units do not want to employ expensive GST automation solution, but this has now become necessary. The competition is raising day by day due to which the GST software providers are trying their best to use the valid security measures industry standards. So it is up to the companies to choose the best-automated solutions and stand a step ahead than others.
