The new GST return system will be introduced with several changes as far as reporting is concerned. Businesses may need to take a look at updating their ERP systems in order to facilitate easy reporting of data and incorporation of the necessary changes.
While invoice-wise reporting will continue for B2B invoices, businesses will have new requirements such as furnishing details of purchases from unregistered dealers, and additionally, imports and purchases from SEZ units to be declared bill of entry-wise.
Suppliers are currently uploading this data, but from April 2020 onwards, recipients will also need to upload the same. GST returns will soon become a workflow-driven mechanism instead of a supplier-driven one.
The new system of e-invoicing will also require the automatic uploading of data to the government portal from the ERP system, as a manual process of invoice-wise uploading will be time-consuming and error-prone.
E-invoicing is being introduced by the government in the month of January 2020, even before the launch of the new GST return system, for enterprises to be prepared with its working before the new GST return-filing system gets launched.
The stress on automation is a sign that the government is trying to eliminate fraud and tax-evasion to the extent possible, and while e-invoicing, for instance, is made voluntary at the moment, it could soon be implemented without exception across the entire country. The ERP systems currently in place will need no overhaul, but will definitely need revamping to some extent to make way for the new changes introduced.
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Athena is a globe-trotter whose aim is to see 30 countries before she’s 30. When she’s not travelling, she’s busy planning her next trip. She’s a Chartered Accountant by profession with a keen focus on GST. She writes by day and reads by night.