HYDERABAD: Some industries might be losers and some might be gainers post GST, but companies focusing on creating software and accounting products for taxation requirements are eyeing new business opportunities.
According to accounting and taxation experts, GST is set to change the accounting and taxation procedures completely and therefore existing systems will be replaced by new systems and procedures. Besides, new skills and IT infrastructure are needed for accounting and tax filing in GST regime, which will drive businesses and professionals towards new software products.
“GST will bring fully automated return filing. Any trader has to manually fill one return GSTR-1. The other returns GSTR-2 (purchase details), GSTR-3 (monthly summary) and GSTR-9 (annual return) will be populated automatically.
This is where the role of software comes in. There are about 57.7 million registered SMEs in India, along with 15 million retailers and thousands of online and offline ventures. It is estimated that these businesses will spend about `35,000 crore for transition in the next two years. The fintech industry will play a major role in this transition and according to a Infosys study this presents a Rs 6,000 crore opportunity for such firms,” said Archit Gupta, founder and CEO of ClearTax.
To cater to the demand emanating from businesses post GST, enterprises like Infosys, SAP, ClearTax, Tally Solutions, EY and others have been launching several new software packages and even fintech startups are working on various products to have a share of the pie.
“Before GST we had Excise, VAT, Service tax and others, which will be eliminated post July 1. All transactions will leave a digital footprint and businesses have to exercise caution in compliance. Therefore businesses looking for new accounting and taxation software will create new opportunities,” summed up Pratik Jain, Chairman, special task force on GST, ASSOCHAM.