India followed Modiji on social media to all the places he visited worldwide but is it ready to follow him on streets of tax reforms when it comes to GST? Worry not, Narendra Modi is an excellent piper who’ll lure rats and children alike.
When GST rolls out this July 1st, businesses of all size, scope and ambition are ought to be affected. Implementation of GST brings along with it transformational transactional changes. Various individual taxes like the Excise Tax, VAT, Entertainment tax, Service tax, Octroi and all those which you have been paying will be transformed into one single tax that is GST (Goods and Service Tax).
All coins have two sides and GST isn’t an exception. Focusing on the brighter side (whichever it may be- heads or tails), SMEs have a lot to benefit from this tax reformation. Removal of cascading taxes, dissolution of state boundaries, taxing uniformity and ease of starting businesses will provide a boost to new SMEs. Here, Modiji is playing his ‘Make In India’ tune.
90% of industrial units in India are SMEs which amount up to 26 million. SMEs contribute to 40% workforce and 45% manufacturing output of the country. This mass of industries relied on accounting software like Tally, Busy, etc.
The story of Tally is interesting. During its inception, technology skeptics were afraid to resort to licensed software, but now Tally boosts of almost 400 new customers per day. Today, it is a community of 6,50,000. With the onset of GST, new GST ready accounting software are necessity. But, are they ready yet?
GST ready offline software is a rarity like a Unicorn but GST ready cloud-based solutions are rainbows. The cloud-based solutions are a holistic approach to all the worries of SMEs regarding accounting procedures. This is where Modiji is playing his ‘Digital India’ tune.
The decision of adopting offline or online solutions is subject to individual requirements. Major factors influencing this decision technical prospect of the company, intricacy of operations and data sensitivity. In the coming era of GST, who will rule is a huge question? Will the online cloud-based solutions defeat offline accounting solutions? And will SMEs be a weapon to the Cloud companies in the era of GST?
Weighing the attributes of each with personal requirements will help companies come to a decision and decide whose side are they on! There is no winning side, only the right side.
|ATTRIBUTE||OFFLINE SOFTWARE||CLOUD-BASED SOLUTION|
|ACCESSIBILITY||Specific to place||Anywhere in world|
|OWNERSHIP COST||Hardware and Software||Software|
|CUSTOMIZATION||Standard Format||User customizable|
|GROWTH & EXPANSION||New purchases & installation||Upgrade plan|
|PERFORMANCE||Little benefits with no Risks||More benefits with little Risks|
Now it is on companies to decide which tune are they going to dance to. (Here, Modiji isn’t playing the music)