How to get ready for New GST process
It's the right time where most of the Corporates should focus on their system and process up-gradation for the New GST Compliance Process.
All CEO/CFO/Tax head of MNCs/ Enterprise in India are recommended to focus on the below aspects:
Vendor ABC analysis and New Contract drafting with vendors:
After evaluating the last 33 months of data. Vendors can be classified into below categories :
A - Timely filers without delays
B - Irregular Filers
C - Major non- filers
After this categorization, get your payment terms revised accordingly. For eg: for category C payment should be done only when Monthly returns are Filed.
New GST return format changes impact on ERP.
- Data upload mechanism
- Matching frequency
- Promptness to respond on Mismatch
- Finalizing difference limits, etc.
Be ready with E-invoicing and QR Code requirements:
Take advantage of this opportunity to make your data input fields inline so that the input data can be used as a single source of truth for GST and EWB compliance
Work with your Technical team
The technical team should be well equipped to handle data field updates in system, batch schedulers enhancement, adherence to data security standards, development to absorb e-invoicing data via ERP, facilitation to users to take action on Auto-populated data in a most effective manner.
Train them on the new process
Have regular workshops at your premises to update all the teams on the important aspects of the new GST regime.
Make your entire eco-system updated
Set a mechanism to align your Vendors and Customers as per the requirement of the new regime. Share regular updates with them and set up their training with the support of our experts. This is required as there is a dependency on availing and passing on the ITC from vendors to customers in a timely manner so that the cash flow of the entire chain of business doesn't get impacted.
Make your internal Compliance team robust
Have regular cross-functional team discussions between the technical and compliance teams so that they both understand the perspective of each other and develop a robust compliance process to adhere to the new GST regime.
The above are a few important aspects. We can help you in all the above aspects with the help of our GST experts who have closely worked with Top MNCs and Big4s in developing their systems and training their Indirect tax teams across India.
LegalSuvidha GST experts are passionate to support all large and medium enterprises across India. Connect at 8130645164 to get in touch with our expert for a 15 minutes free consultation.
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