In the wake of implementation of GST in the Country from 1st July,2017, the preparedness at the level of small businesses is one of the major challenges. The proposed GST taxation system is entirely based on technology where not even a single paper will be used. The basic fundamentals of raising invoices, procedure of availing input credit, integration of goods & services, compulsory rating of each entity registered under GST are some of the key issues which are entirely different from current VAT tax regime.
On the other hand nearly 60% of small businesses in the Country have been devoid of digital technology and the basic challenge is that at a time when everything will be routed through digital technology under GST, how these large number of traders will be able to comply with GST from 1st July,2017. Empowerment of such large number of traders with technology in such a short span of time when only 19 days are left is quite impossible.
Calling it is as one of the major challenge, Mr Praveen Khandelwal, Secretary General of the Confederation of All India Traders (CAIT) which is strongly advocating GST in the Country said that education and empowerment of small businesses with basic fundamentals of GST and that of technology is certainly an important issue even from the fact that GST is a destination based taxation system where Consumer has to pay the tax and traders are the only last mile connect with Consumers and as such they have a significant role to play under GST.
Mr. Khandelwal said that till the time traders across Country are equipped with technology, some in between measures needs to be adopted to help the traders in compliance of GST through digital technology. He has suggested that Government should take Trade Associations across Country can be used as GST Facilitation Centre . Being in the markets itself, these locations would be much preferred by the traders. There is a need for the Government to reach out to Trade Associations. He has also suggested that Computer Kiosks can also be installed in commercial markets enabling the traders to do compliance against a nominal fee.
However, CAIT has suggested Trade Associations across Country to make clusters of 30 to 50 traders and connect them with an Accounting Professional who should assist traders in performing compliance obligations of all traders under the respective cluster.