GST is progressing like a race against time and ball is moving from hand to hand till it reaches its goal. CEO and Business Owners can’t afford to lose control over this biggest tax reform at the same time would be finding too many interplays and complex levers to handle in the Transition Phase.
Five important things every one of us must remember about GST are as follows –
1. Any Change is full of resistance – So Plan to Navigate it successfully
Both External and internal requirements cannot meet at one point and there has to be a strong Change Manager in the Core Team implementing GST who will reconcile between things “Must to Have” and “Good to Have” and take decisions. It could be either CFO or Operations Head but should be able to take ownership of Business disruption.
2. IT and In-house Tax Team might Struggle on Resources
GST Change is not a mere Tax Change , it will impact accounting, Business process, Supply Chain and ERP System recording various processes. IT Team might have huge dependencies on ERP Service providers and will seek for clear Business Requirement ( BRD) from business . Tax Team might find it overwhelming to de-code exact business impact on Market Share , Pricing , Value Chain and at the same time assist in Compliance , Classification & Vendor Management for free flow of GST Inputs.
CEO & Business owners should have clear idea on resource planning and dedicated budget for GST Transition by seeking expert help who is familiar with their Industry and Internal Processes. Investment in Technology , Capacity Building and Data Analytics will help in long run.
3. It’s Time to Strategize on Strengths rather than worrying about weaknesses
GST will unleash seamless integration and Optimization opportunities which could be strategized to reposition your Market Strategy , Warehousing & Logistics , Customer Focus and Capital Investments. It is time to un-follow the herd and get deeper insights of your business from the GST Impact Study itself to change the orbit.
4. Cash is King and King is mighty of ALL
GST might pose temporary working capital issues to many business due to poor planning or delay in compliance by your vendors and therefore a ready plan for liquidity will help businesses to sail through rough weather and out execute their competitors by agile treasury management.
5. Don’t lose focus on International Trade Scenario
GST will open doors of our economy for huge investment in both manufacturing and services sector , International players are watching this development for long time , therefore Business owner must have their ears on the grounds and air both to analyze how his / her business is taking shape with the new realities. It is good to associate with your Industry forums and revive them to remain active in terms of critically analyzing the impact with wide horizon.