After a wait of several years, India will finally implement the Goods and Service Tax from 1st July, 2017. The roll-out will replace a plethora of cascading central, state, interstate and local taxes with a single, nationwide, value-added tax on goods and services, creating a single market. This is indeed a significant change in the way taxes will be computed across the country and will have far reaching implications on every business. C-Edge has launched an end-to-end solution to help your bank come to speed with these far-reaching tax reforms.
Features of GST
- A single unified indirect tax system which will replace at least 17 state and federal levies
- Remove cascading effect of taxes and lead to lower prices in the long run
- GST would be levied on ‘supply’ of goods and services and hence the present prevalent concepts of levy of excise on manufacture, VAT/CST on sales, entry tax on entry of goods in local area would no longer be relevant.
- GST is a destination based consumption tax, which essentially implies that the revenue will accrue to the State where the consumer resides.
Impact of GST on banks
- The bank will have to register from every state where it operates unlike right now where it only has to do it once.
- The bank will have to file 37 returns in all unlike 2 under the current scheme.
- Seller-purchaser reconciliation will have to be done for Input Tax Credit (ITC)
- The reports will no longer be aggregated but invoice/transaction based
- Pro-rated distribution of ITC to taxable (including zero rated) and exempt supplies. Exempt supplies include supplies on which recipient is liable to pay tax on reverse charge basis.
Features of C-Edge GST offering for Banks
- Assessment of IT changes – CBS & non-CBS
- Implementation of CBS changes for GST calculation and compliance requirements
- Providing & implementing additional data capture modules wherever required
- Providing & implementing ASP/GSP reporting solution
- IT & Business operations services in reconciliation/ submission/ download of returns
The C-Edge GST expertise consists of
- Domain experts – CAs, Business Analysts
- ASP/GSP Solution experts
- Source system & integration experts
- Environment management, network & security experts
- Call centre for operations
Implementation of GST is going to be a race against time involving multiple stakeholders. This is a complex activity which will continue far beyond the date of rollout till the time this new tax regime stabilizes. C-edge as your partner in IT & operations is committed to make this transition as painless as possible for your bank. We urge to you take action now and join us in this journey to get your bank started on GST implementation.