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Impact of GST on IT Industry

Mar 22, 2017

Why GST is giving the IT industry cause for concern

Nasscom chief R. Chandrashekhar says complex billing and invoicing requirements due to some provisions of the GST bill could complicate taxation for IT companies

Some provisions of the constitutional amendment bill on the goods and services tax (GST) could undermine the competitiveness of India’s information technology (IT) industry and have the potential to spark disputes and litigation, the software and services sector lobby group has warned. Click to read more

GST Impact on Indian IT Industry- Some Hits, and then some Misses

Hurray-the Goods and Services Tax (GST) bill, which is aimed at addressing issue of multiple levies and its cascading effect, ushering in destination-based taxation, simplify compliances and provide for effective dispute resolution mechanisms in a time-bound manner- has been passed! Click to read more

GST impact across sectors: Take a look at the winners and losers

GST will turn India into one common market, leading to greater ease of doing business and big savings in logistics costs from companies across all sectors. Some companies will gain more as the GST rate will be lower than the current tax rates they pay, others will lose as the rate will be higher than the present effective rate. While the rate of GST is yet to be decided, industry observers have assumed an 18% rate recommended by a government panel in making their impact calculations. Click to read more

Companies may move to new IT systems to tackle GST challenges

Several Indian companies have begun discussions with their IT vendors and tax advisors to upgrade their systems to enable tracking of goods and analysis of tax and other cost implications once the goods and services tax (GST) regime comes into force.

Companies are mainly upgrading their enterprise resource planning (ERP) — a category of business-management software — so as to accommodate the complexities of calculating GST. ERP helps companies manage and monitor everything in the organisation, including supply chain, finance and even human resource functions. SAP and Oracle are the big players in the Indian ERP space. Many companies will have to move from their current system, where every transaction is recorded separately, to an upgraded system where there is a correlation between every entry, according to industry executives. Click to read more

5 Ways GST will Impact Information Technology

The long-awaited GST bill that is expected to unify and simplify the Indian tax structure, will be implemented from 1st April, 2017 and most industries are likely to fall under the blanket of its impact. However, the IT sector with services such as software development, mobile app development, website design and more, is one of the major sectors that is likely to be impacted. With the intention of safeguarding the financial independence of the States and the Centre, the government has proposed a dual GST structure, under which State GST as well as Central GST will be applicable for every supply of good. Though at an elementary level this might appear to be basic, the IT sector may have some formidable changes that need to be tuned in to. Click to read more

Model GST Law – Impact on IT and E-commerce sectors

The information technology sector has arguably held fort as the country’s bellwether sector for the past couple of decades. More recently, e-commerce, one of the fastest growing sectors, seems to be emerging as a strong contender. In this backdrop, here is a look at how the proposed GST regime, unveiled through the release of the Model GST Law, could impact ease as well as cost of doing business for these sectors. Click to read more

Impact of GST on IT Market: Here What IT Leaders Think

After Rajya Sabha cleared the long-pending Constitution Amendment Bill, the government on Thursday said it was hoping that at least 16 states ratify the legislation over the next 30 days for rolling out goods and services tax (GST) from April. “We are trying to reach the target date of April 1,” revenue secretary Hasmukh Adhia said at a press conference.

While the Bill is headed back to Lok Sabha next week to get a clearance for the amendments that have been incorporated, the next step – formation of the crucial GST Council comprising states and the Centre – depends on ratification by the state legislatures. Click to read more

GST Bill Passed: What It Means For IT Sector?

After a long wait and repeated requests by the Indian Government, the Rajya Sabha facilitated rollout of the historic Goods and Services Tax (GST) Bill, which is expected to simplify and unify the tax structure of India. Considered to be a significant reform in the country’s history and economy, the much-awaited GST will be implemented from April 1, 2017, and is expected to profoundly impact the IT-BPM sector, which is currently valued at USD 143 billion (2015-16). Click to read more

Multiple taxation points under GST worry IT industry

With the passage of the GST Bill, IT companies are concerned over multiple taxes and how it would impact the export competitiveness of the $150-billion industry.

Nasscom President R Chandrashekhar told BusinessLine that while the GST will streamline the taxation system, it will open up multiple taxation points. The industry association has submitted a 72-page ready-reckoner to its members, throwing light on various provisions that will have a bearing on the industry. Click to read more

Explained: Positives & negatives of GST on IT sector

In a CNBC-TV18’s special series ‘Hello GST’, Menaka Doshi decodes the positives and negatives of goods and services tax (GST) for the information technology (IT) sector along with Sagar Shah, National Head – Indirect Tax, BDO India.

Shah says currently there is a considerable litigation on whether software is a good or a service and taxability around it. Click to read more

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