Table of Contents
Introduction
Why is GST, the much-celebrated tax reform in India, taking so long to deliver the results everyone expected? When Goods and Services Tax (GST) was introduced in India in 2017, it promised to revolutionize the country’s tax system. Fast forward to today, many businesses are still struggling with its implementation. So, what’s holding GST back from being the “game-changer” it was hyped to be? In this article, we’ll dive deep into the challenges, complexities, and long-term implications of GST and offer practical advice to help businesses navigate the current landscape. Stick with us to find out why GST is taking so long and how companies like Filingwala.com can help streamline your business processes.
What is GST and Why Was It Introduced?
The Goods and Services Tax (GST) was introduced as a unified tax system aimed at replacing the patchwork of state and central taxes like VAT, service tax, excise duty, and more. It sought to simplify tax collection, reduce the cascading effect of multiple taxes, and make compliance easier for businesses of all sizes. Before GST, companies were dealing with complex tax structures that varied from state to state, creating a lot of confusion and inefficiency.
Key Benefits of GST:
- Simplified tax structure: A single tax replacing multiple indirect taxes.
- Increased tax compliance: With input tax credits (ITC), businesses are incentivized to keep their records transparent.
- Nationwide uniformity: GST ensures that a product costs the same across all states, boosting interstate trade.
But despite these lofty goals, the reality has been far more complicated.
The Journey of GST in India
Before we delve into why GST is taking so long, it’s essential to understand its journey. India is a diverse country, not just culturally but also economically. Implementing a uniform tax system across such a vast and varied landscape was bound to be a challenge.
The original GST Bill was first introduced in 2000 but took nearly 17 years to finally become law. The political and economic hurdles that delayed its launch are just one part of the story. Even after its rollout, the challenges have persisted.
Challenges in GST Implementation
a. Technological Infrastructure
One of the biggest hurdles in GST implementation has been the technological infrastructure. The GST Network (GSTN) was designed to handle the massive task of processing billions of invoices. But, the system has faced constant technical glitches, especially in the early years. Businesses experienced delays in filing returns due to server issues, and small business owners, especially in rural areas, found it difficult to access the online system.
b. Complexity in Tax Filing
Although GST was intended to simplify tax filing, the initial stages of its implementation revealed just how complex the system still was. Multiple forms, return filing dates, and reconciliation processes have made it tough for businesses to keep up. According to recent reports, small businesses are spending more time and money on compliance than they did pre-GST.
Example: A small business in Pune found that the time spent on compliance had nearly doubled in the first year post-GST. The owner had to hire an additional accountant just to handle the paperwork!
c. Small Businesses and GST Compliance
Another significant challenge has been compliance for small businesses. For a large number of micro, small, and medium enterprises (MSMEs), understanding GST’s complex rules has been a burden. These businesses often lack the resources to hire consultants or accountants, making it hard for them to meet compliance requirements.
Why GST is Taking So Long to Deliver Results
Despite being in place for over six years, GST has yet to fully deliver on its promises. One key reason is the frequent policy changes. The GST Council has made several adjustments to tax rates, filing deadlines, and return forms. While these changes are meant to improve the system, they have also created uncertainty and confusion.
Another factor is bureaucracy. The process of refunding taxes, for example, is still painfully slow, leading to cash flow problems for many businesses. Moreover, the lack of uniformity across states in terms of implementation has added to the delays.
Expert Opinions on GST Delays
Experts agree that while the intent behind GST is noble, the execution has left much to be desired. Dr. Arvind Subramanian, former Chief Economic Adviser, remarked that GST in its current form is “too complex for businesses to follow.” He believes that the frequent changes in tax rates and the complicated structure of GST slabs have confused business owners rather than simplifying their lives.
How GST Affects Different Roles and Their Salaries
GST Salary: Different roles within the GST framework have seen significant changes in salary structures. Here’s a closer look:
a. GST Consultants
Since GST’s implementation, there has been a surge in demand for GST consultants. These professionals help businesses navigate the complexities of tax filing, reconciliation, and compliance. GST consultants can charge anywhere between ₹50,000 to ₹2,00,000 per annum, depending on their experience and the size of the client.
b. Accountants and Tax Advisors
The role of accountants and tax advisors has also evolved significantly with the advent of GST. With businesses needing to file monthly, quarterly, and annual returns, the workload for these professionals has increased, leading to a rise in salaries. A seasoned accountant with GST expertise can command a salary ranging from ₹3,00,000 to ₹10,00,000 per annum.
| Role | Average Salary (INR per annum) |
|---|---|
| GST Consultant | ₹50,000 – ₹2,00,000 |
| Accountant (GST) | ₹3,00,000 – ₹10,00,000 |
| Tax Advisor | ₹5,00,000 – ₹15,00,000 |
The Role of Filingwala.com in Simplifying GST
With all these challenges, where does Filingwala.com come in? Filingwala is a leading platform providing businesses with legal, accounting, and tax services, including GST filing, registration, and compliance.
- Easy GST Filing: Filingwala.com makes GST filing easier by automating much of the process. Their platform ensures that businesses never miss a filing deadline.
- Expert Support: Filingwala.com offers expert guidance, so small businesses don’t have to hire expensive consultants. Their in-house tax advisors can help with all aspects of GST, from registration to compliance.
- Affordable Packages: Filingwala.com offers affordable GST packages tailored to different business needs, ensuring that compliance doesn’t eat into your profits.
Call to Action: If you’re struggling with GST compliance, Filingwala.com is here to help! Visit their website to explore their affordable GST services and never miss a filing deadline again!
Actionable Tips for Businesses Struggling with GST
- Automate Your GST Filing: Platforms like Filingwala.com provide automation tools that can simplify GST filing for your business.
- Stay Updated: The GST Council frequently updates rules and rates. Make sure you’re subscribed to a reliable GST update service or use Filingwala’s expert services to stay informed.
- Hire a GST Consultant: If you’re a medium to large-sized business, hiring a GST consultant could save you from costly mistakes.
- Review Your Tax Credits: One of the benefits of GST is the ability to claim input tax credits (ITC). Ensure that you’re taking full advantage of this feature to lower your tax liability.
- Seek Professional Help: Sometimes, it’s easier to outsource your GST requirements to experts. Filingwala.com can take the burden off your shoulders.
Conclusion
GST was meant to simplify the tax process in India, but its implementation has been fraught with challenges. From technical issues to compliance hurdles, businesses of all sizes are still grappling with its complexities. The frequent changes and lack of clarity have delayed the benefits of this transformative tax system.
However, businesses can navigate this tricky landscape with the right guidance. Filingwala.com offers affordable, expert-driven services that make GST compliance a breeze. Whether you’re a small business or a large enterprise, their solutions are designed to take the hassle out of GST.
FAQ
Q1: Why is GST so complicated?
A: GST was designed to unify India’s tax system, but the complexities arise from frequent changes in tax rates, forms, and compliance requirements.
Q2: How can Filingwala.com help with GST?
A: Filingwala.com offers affordable, expert services for GST registration, filing, and compliance, ensuring businesses never miss a deadline.
Q3: What roles have seen salary growth due to GST?
A: GST consultants, accountants, and tax advisors have seen significant salary growth as businesses seek expert help to navigate the tax system.
Q4: How often do GST rules change?
A: The GST Council frequently updates rules, so it’s
