The countdown to the roll-out of the goods and services tax, or GST, has begun. The government, enterprises, regulators and consumers are gearing up to handle the tax implications of “one-country one-market structure”. A lot has already been written about how enterprises can prepare for GST. However, in my opinion, GST is not just a financial reform, but a broader business reform to service tax audit firm in Delhi. It has the potential to relook at how enterprises conduct their business in India.
With GST, enterprises have an opportunity to revamp systems, go beyond the physical constraints of supply chain, and focus on what matters the most for any business—customer experience! It doesn’t just stop there. With delinking of the physical footprint from direct tax implications, enterprises can use this opportunity to move beyond physical structures, ‘go digital’ and provide digital experiences in Indirect taxation in India.
But first, why digital? Digital is the norm in today’s era as consumers respond more when they have better digital experiences. A recent study conducted by SAP concludes that a great digital experience directly correlates with customer loyalty and advocacy.
What has GST got to do with the digital experience? GST has a much wider impact on the way enterprises will conduct business in India. It is change from physical to digital. As enterprises take steps to comply with the GST regime, they must use new agile models of sourcing and delivery through a better supply chain.
Free up working capital: The other big benefit of GST is to free up working capital. A recent study from CARE Ratings concluded that GST could help to reduce logistics costs by up to 20% from current levels in chartered accountant firm. These potential savings can help the enterprises to build a digital footprint instead of the traditional route of investing in new offices for a bigger physical footprint.
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