Also read: GST – 5 Basics That Everyone Should Know
The message is loud and clear. India, after decades of taxation ambiguities and evasions, has leapfrogged from being a country with multiplicity and duplicity in indirect taxation to one with ease of tax compliance and curbs on tax evasions.
While on one h and, Goods and Services Tax, commonly referred to as GST, will bring down prices by the virtue of input tax credit, along with raising government’s revenue, it will also usher in an opportunity, one that calls for the youth to be well prepared for this unprecedented bonanza of jobs.
Let’s discuss two scenarios. One, there is a high possibility that businesses may face distress periods under GST for no fault of theirs. This will happen when they aren’t vigilant enough and one of the firms in the supply chain is not tax compliant, hence will compel the business pay for the unpaid tax which should have been the liability of its supplier. The GSTN will record all transactions with invoice matching leaving no room for non-compliance.
Two, the Indian version of GST has four slabs to differentiate essential goods and services from those identified as luxury items. While many items and services will incur a 5 percent tax, for others it can be as high as 28 percent. This simply means that being attentive while deciding on which slab shall apply to the goods/ services a business provides is the key to avoid penalties and summons by tax officials.
Now to h andle this complex task that may appear uncomplicated at its face the country needs experts. The question is will the number of chartered accountants, law firms be enough to cater in a scene where most of the businesses will have to register under GST and file way more returns annually? GST, hence, brings a veiled opportunity for simple commerce graduates to become GST professionals of tomorrow, thus generating employment.
But is that all as easy as it appears?
Yes. Filing returns under GST does not necessitate specialization in finance and taxation. A commerce graduate with working knowledge of accounting and financial reporting can make it to the next level simply by tapping this lucrative opportunity. A startup providing GST filings services isn’t a bad deal. Let us tell you why.
The government has exempt businesses that have annual turnover below INR 20 lakh from registering under new taxation framework. A local retailer of basic goods like bread, soaps, pulses and such other household items can have a turnover above this meager figure in a Tier-1 or Tier-2 city. What then? Thus the need to register under the new tax regime, maintain records to get input credits and file m andatory returns.
Not all benefits will come automatically with the passage of GST. Many will have to be derived and this is where sharp minds will win. A new service class, GST professional, has all the ground to shine as the result of transition of country from VAT, Excise and such other taxes to single levy. The bottom line is that while GST is set to bring almost every enterprise under its fold, the country is in dire need of dedicated professionals for making this transition smooth and result-oriented.
Also read: Pros and Cons of GST – Impact on common man
