The brand new system would require automated importing of the info on authorities programs.
The brand new Items and Companies Tax (GST) returns from April 2020 that mandate offering extra particulars might require firms to amend their enterprise useful resource planning (ERP) programs. Tax specialists and chartered accountants (CAs) mentioned that the brand new return programs would require plenty of particulars equivalent to purchases from unregistered sellers.
“Moreover, invoice of entry-wise import particulars and invoice of entry-wise purchases from SEZs (particular financial zones) can be required. As of now, there’s one-way visitors. Presently, suppliers add these information, however from April 2020, recipients can even must add all these information,” mentioned Vivek Jalan, Associate, Tax Join Advisory Companies LLP.
As an alternative of the GST returns being the present supplier-driven visitors, beginning April subsequent 12 months, it will turn out to be a workflow pushed mechanism, he added.
Furthermore, digital or E-invoicing for enterprise to enterprise (B2B) transactions would additionally kick in from January 1, 2020. This may additionally require modifications within the ERP programs to make sure thgat each bill is tracked by the tax authorities. The transfer is aimed toward curbing tax evasion.
Along with the present invoices that are generated on the businesses’ ERP, the brand new system would require automated importing of the info on authorities programs.
Amit Bhagat, Associate, Dhruva Advisors mentioned that relying on the main points required within the new return system, the ERP would must be modified.
“It won’t be one thing which would require full overhaul of the system, however definitely some modifications can be required after e-invoicing is carried out and extra particulars in GST returns are required from early subsequent 12 months,” Mr Bhagat mentioned.
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