For businesses operating in India next 6 – 10 months are going to be very critical. After all, this country is going to create one major market in the world by implementing GST, which is being touted as the biggest Indirect Taxation reform till date. The move can significantly increase the convenience for businesses, but like any good change at the time of implementation it may cause major troubles as well. Therefore, businesses should start preparing for it as soon as possible.
Here we’re going to share a 5 point cheat sheet with you that can help you prepare your business for a smooth transition to GST. Let’s get started:
- Streamline Internal Processes: A reform as big as this one is bound to bring major IT and accounting related changes. Besides that you may also see changes in purchase habits of your customers. These changes should be anticipated in advance to avoid a rude shock. You should have a clear idea of which operations in your business are going to be affected, and how are they going to be affected. Only then you can start your GST preparation in the right direction.
- Train Your Staff: Since GST will be quite different and simplified from current indirect taxation regime, your accounting staff will initially need special training to understand its accounting practices. Depending on how much your staff members already know about it you may need two – three months to train and prepare them for this major change.
- Keep in Touch With Government: This is crucial for you if you’re a multinational corporation. By staying in touch with relevant government officials (i.e. those of Finance Ministry) you may get an early clue about the rollout and also about the rates that’re about to be announced with implementation.
- Study best Practices: There’re countries where GST has already been rolled out either recently (i.e. Malaysia) or some time ago (i.e. France, Canada). You should study the best practices followed by large corporations in those countries to work smoothly with GST. If you’re a multinational then this should be easy for you.
- Prepare Your Suppliers/Customers: Besides yourself you should also encourage your suppliers, clients and customers to prepare for this major reform. By doing this you can ensure a smooth transition without any supply chain related issues.
If you follow these steps, your business won’t have any trouble in making transition to GST. Implement them today and start preparation for for an easier way of doing business.
