From the IT standpoint, "We have a customized ERP, and all our patch upgrades have already begun. As the tax rates are out, we have to change our accounting system, sales invoice, and procurement, as all are integrated," he says. And from the business perspective, he believes that managing backend process will be easier and there will be less paper work.
On a similar note, Saunak Ghoshal, Partner - Technology Consulting, PwC India, points out, "The biggest impact will be making the necessary changes in the IT system. An internal or an external team has to carry out an assessment of their technology backbone. It could be ERP or other applications where taxes are calculated. ERP has come up with standard patches like SAP, where we put the slab value and everything gets calculated. It's just that all the rules need to be applied."
We tried to understand the CFO concerns post GST implementation. Ramkrishnan Kumaran, CIO, Flyjac Logistics, says "The CFO will think about the components where service tax will be applicable. He will also look into the cash cycle to see if filing will be done on monthly or multiple times based on the different slabs they have released."
To conclude, the announcements of tax slabs by the GST council is a much needed step to improve supply chain efficiencies and reduce losses in the logistics sector. Many CIOs feel that it will take approximately six months for the companies to settle down with GST.
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