How Will IT Be Used for the Implementation of GST?
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The undeniable facts about integrating technology into taxing activities are proper registration of businesses, return filing, auditing of financial statements and documents as well as analysis of performance. This will soon render human intervention in taxing irrelevant, which is entirely magnificent because of they always doctor, if not manipulating these activities to suit their interests.
In the best interest of the country, the United Kingdom administration made the move of passing the GST law. This law aims at transforming the taxing activities, formerly marred by crimes such as tax evasion amongst other taxing irregularities. With the GST in place, such events will be things of the past and shall never see the light of the day.
GST is an acronym for Goods Service Tax; which is the tax levied on consumer products. Therefore, consumers pay this tax as they buy the goods and the sellers submit these taxes to the government or the relevant authorities.
On the other hand, the Goods and Service Tax Network(GSTN) is a non-governmental company that creates a taxing interplay amongst taxpayers, central government, state administrations as well as other stakeholders. Although it's a non-profit entity, it provides Information Technology infrastructure to the parties of the taxing business.
Besides storing all the GST-related data such as returns and invoices, the GSTN comes along with an Application Program Interface that smoothens the connection with t5he taxpayers' third-party applications. In addition to this, a robust IT infrastructure will ensure digitization of taxing, thus making it easier for banks, taxpayers and the authority to keep track of events as they unfold.
Technology's significance in the implementation of GST
So far, we can identify and pinpoint the role played by technology; accounting and tax calculating software and systems serving as simple examples. However, with the adoption and implementation of the GST taxing structure, digitization of all taxing activities is inevitable, and we should expect;
Increased accuracy and efficiency – the intervention of technology will increase taxing accuracy and efficiency while consuming less of our time invested in the taxing business. Naturally, technology will focus on our time so that we can focus on everything else.
Abolishment of manual taxing trends – the point is already home. Technology always replaces traditional ways of doing things, which in this case, has been crude and mothers all the taxing and counting crimes we witness. It brings a transparent method of recording and filing data, thus revealing what goes wrong where and why or rather by who.
Replacement of indirect taxes – because it is a unified taxing procedure, GST is bound to subsume a better part of indirect taxes and utterly transforming the taxing structure. The effect of this will be new ways of tax calculations, rates as well as methods of payments.
Matching of invoices – it applies to the buyers as well as sellers and is very instrumental in curbing duplication cases alongside frauds. Agree with me, matching billions of invoices from the millions of taxpayers manually is a mammoth task, especially to the small business accountants and firms in London. This brings forth the need for an incredible technological infrastructure to man the whole system. Failure to do this, the entire taxing business will find itself in the toilet.
Establishment of the GSTN server – the server is a common platform for the administration for taxing activities. Putting it in place means high tax compliance amongst taxpayers as well as hassle-free processes.
Miscellaneous privileges – GSTN will come along with extra add-ons at the convenience of the users. They include;
- The capabilities to calculate taxes offline.
- The alarm that alerts taxpayers whenever they are supposed to file their taxes.
- Mobile and tablet interfaces.
With their reputation and prowess to deliver holistic accounting services, implementation of this project means that small business accountants in London will succeed in their service delivery while setting a new bar in efficiency.