A tech solution for seamless GST integration

There appears to be no change in the way business is conducted by small undertakings in the post-GST regime except for the fact that they now issue a bill when a sale is effected. Incidentally, many seem unaware of the GST rate that they should be charging for various products.

“Our auditor has advised us to charge 5 per cent,” said the owner of a textile shop. The owner, who preferred not to be named, has been in the business for over two decades, sourcing the material from upcountry textile hubs. “In any case, my annual turnover does not exceed ₹20 lakh,” he added.

Meanwhile, companies such as Microsoft and IDOS aver that they are committed to enable businesses with seamless GST integration.

“The Digital India initiative is focused on harnessing technology and Microsoft Kaizala is a made-for-India product. This mobile product will assist organisations in seamless interaction. It has been optimised for 2G networks to enable connectivity in remote locations and with features for offline support as well,” said Anant Maheswari, President, Microsoft India.

To ease the compliance process in the way businesses are conducted under the GST regime, Microsoft and IDOS (a fully automated accounting and compliance application) – are enabling registered buyers manage GST compliance even if they bought from small unregistered sellers by introducing IDOS+Kaizala.

“The solution has streamlined the purchase process – made from an unregistered dealer. It ensures that the registered buyer pays tax on reverse charge and raises a self invoice while accounting for the same. Since it is a Cloud-Mobile solution, users can access it from anywhere, anytime,” the source explained.

The solution allows GST registered buyers to raise a purchase order from their IDOS software. This PO (purchase order) gets transmitted to Kaizala of the seller on his mobile phone. Once the seller accepts the PO, it is automatically transmitted to Kaizala on the buyer's mobile and updated in the buyers IDOS software as well.

The IDOS solution automatically applies reverse charge, generates self-invoice for the registered buyer, making it convenient for the GST registered buyers to continue their deal with small unregistered sellers, the source said.