After being subject to numerous days of haggling, the Goods & Services Tax bill finally had its historic day in the Rajya Sabha with the green signal, showing the way for concept of “one nation, one tax.” In India

The GST will have two components in line with the governing structure of India: the Central GST (CGST) and the State GST (SGST).

GST tax reform makes a paradigmatic shift in the Indian taxation system. The industry which is most affected would be software, the companies providing business applications as a service to enterprises.

There will be dramatic change in accounting software such as ERP which is used by the business world to generate invoices and payroll structure due to the change. The minor modification in the taxation can triggers to a domino effect, which reflects the change in entire accounting system from top to bottom. Which means the smallest changes can roll up sleeves of enterprise accounting software consultants to make clients tax compliant.

But the most important work over here is of the software that handles the accounting of the company. Most accounting software companies in India are designed keeping the regulation in mind. So the tax computing was not a difficult task. But with GST coming in picture, even the software will be affected in the following way:

However, GST will be a game changing reform for Indian economy by having a common market and reducing the cascading effect of tax on the cost of goods and services.

GST will have a tremendous impact on almost all the aspects of the business segments in the country, for instance, pricing of products and services, SCM optimization, IT, accounting and tax compliance systems.