With the introduction of the Goods and Services Tax (GST), various industries have witnessed a huge change and tyre industry is not an exception. Talking about ERP systems, many changes were made in the basic structure to calculate taxes and make the implementation of GST easy for the tyre industry. The reform brought in by GST in the industry is anticipated to be good. GST has also brought transparency and clarity to the tyre industry that was lacking in the past. It has brought major and minor players on a level playing field.
There have been widespread concerns regarding the smooth working of GST from the industry as well as individuals. These led to a decision by the government that for the first two months of the GST implementation, it would be payable on a simple return basis form of GSTR-3B. It will contain a summary of the outward and inward supplies and the businessmen would be required to submit this before the 20th of every month.
The government also extended the due dates for filing forms GSTR 1, GSTR 2, and GSTR 3 for the months of July and August as per its notification released on 5th September 2017.
As per GST guidelines, every registered dealer is required to file GST return inclusive of purchases, sales, output GST, and input tax credit. Every businessman has to file three monthly returns and one annual return according to GST guidelines. Tyre ERP is one of the software that implemented GST integrated ERP system to facilitate the businessmen to easily calculate their overall GST so that they can file the accurate GST returns without any delays and obstacles.
The returns are mandatory to be filed as any non-compliance towards the same may lead to disallowance of input tax credit, apart from attracting penalties and interests, etc. Proper filing of information and passing the same in the returns is also essential for a smooth flow of credit to the recipient. The tax regime has been designed so that all transactions are in sync with each other and that no transaction is left unattended between the buyer and the seller.
The motive behind giving businessmen some time to pay the tax is to make them accustomed to GST. Taxpayers, in fact, have every reason to welcome this move since this is an effort on the government’s part to make sure that everyone participates in the new tax regime equally.