GST Impact On Adoption
It’s been one year since the Goods and Services Tax was introduced, and while consumers have learned to live with this, businesses are still finding their feet. At BankBazaar, we were anticipating several GST reforms, and were in the process of preparing for the new regime much before the due date.
This preparation helped us identify several potential problems and gave us time to change our internal processes to tackle them in time.
Incidentally, the steps taken to automate and standardise internal processes due to the mandatory implementation of GST have made our financial processes more streamlined.
GST Impact On Fintech Tax Burden
The overall tax burden has not changed much compared to the previous regime.
GST Impact On Tax Compliance
Compared to the previous regime, Tax payments are easier than earlier. As for refunds, BankBazaar has not applied for any.
Challenges From GST
Lack of clarity in GST law as to the applicability of provisions and complex return filing procedures were the major problems. For instance, the revision of returns is presently is not available. Enabling the same would result in lesser complication with return filing.
Recommendations For Improvement
It would also be encouraging if tax liability on asset movement within branches of the company can be relaxed to avoid additional compliances and E-Way bill applicability on Intra Branch transfer of assets.
[Ramesh Srinivasan is CFO at BankBazaar]