Prime Minister Narendra Modi this July 01 ruled out all the primitive tax system and rolled in the new only one tax ‘GST‘, which has been 17years in making. Gst aims at creating a common national market by striking the inter-state trade barrier, incorporating various indirect taxes like excise duty, service tax, VAT, CST, luxury tax, entertainment tax etc. One central tax with different slabs. So now Fruits and vegetables will be taxed at 0%(no tax), cooking gas at 5%, cell phones at 12%, mineral water at 18% and washing machine at 28%, irrespective of the state.
According to GST scheme, business with annual turnover of over Rs20 lakh must file taxes online every month along with annual returns, previously they had to do it annually or quarterly.Now invoices are supposed to be uploaded online by 10th of every month. Gst also aimed at increasing the efficiency by digitizing the entire procedure.So, the intention was to simplify the tax structure but somewhere Gst made tax filing even more complex for 13 million registered companies. Moreover, small business will be forced to hire Charted accountants and invest on computer systems.ClearTax, an online tax filing startup introducing services to simplify the tax filing under Gst’s incumbency.
ClearTax software is a ready-to-use-cloud based software.According to ClearTax’s CEO in a country like India, it will take 12-18 months for it to run smooth.ClearTax’s framework works such a way that the form 16 issued to salaried people breaks down into visual blocks.
So, how much ready and prepared are you?