There have been various questions regarding the role that technology is set to play in the new GST regime. Among them is the question, “Why is the right technology of such great importance?”
In this blog, we attempt to elaborate on the role and impact of technology and its meeting the GST compliance regulations.
GST: What is the role of technology?
Technology is the enabler.
The earlier taxation system needed organisations to file income tax reports at the end of the year or quarterly, based on the system dictated by the indirect tax administration body.
GST regime needs organisations to share invoice information on every sale or purchase made by the organisation every month. This means that every taxpayer will make at least 3 return filing submissions a month. The magnitude of data to be collected, reconciled, and organised in the set timeline will be unachievable, unless organisations hire an army to keep this process flowing and action in time. Technology enables organisations to input data in the format needed for a process, convert it to the format set by the GSTN and transmit this information consistently every month allowing them to be GST compliant.
To look at it from a pure technology infrastructure perspective, the GSTN is nothing but a large data center that will house all the information. The GSP (GST Suvidha Provider) is an organisation that has the capability to provide the servers and secure lines required to communicate with the GSTN. The ASP is nothing but an application that extracts your invoice information, converts it and communicates it to the GSP. The GST ecosystem is nothing but an interconnected web of technology; making technology the enabler and backbone of the new GST regime.
Among the only 34 authorised GSPs in the country, is Vayana Network. To find out how our GSP solutions can help you be GST compliant, visit https://vayana.com/gst/gsp/