With GST supporting legislations getting Parliament nod, companies will have to rework their sale strategies and also work overtime to put technology backbone in place by July 1, experts said on Thursday.
The revenue department has already made public the set of rules required to be followed by the industry in the Goods and Services Tax (GST) regime and companies will have to ensure that the supply chain ecosystem is in place to avail input tax credit, they said.
“BMR & Associates Partner Mahesh Jaisingh said: “In addition to IT system, the companies need to be cognizant about their September quarter sales and strategise it accordingly”.
Jaisingh further said the companies will now have to undertake near-term strategy and planning keeping the rollout date in mind and larger tax planning can take a backseat for the moment.
Experts said services sector companies will find it more difficult to meet the July 1 deadline if they have not started preparations early.
Nangia & Co Director (Indirect Taxation) Rajat Mohan said the companies will now have to move fast and focus on business process changes and developing the information technology backbone by either hiring consultants or on their own.
According to Manufacturers Association For Information Technology (MAIT), the two critical issues that the industry foresee right now relate to tax applicability on the existing stocks on the day of migration as they would be VAT paid already and treatment of tax and refund on services provided under contracts.
“We hope that the government will address the issue so that they do not create hurdles to the smooth rollout of GST,” MAIT said.