Business dynamics will change with the advent of GST in the coming financial year, Sandeep Shah, Partner (N.A.Shah Associates), Chartered Accountants, has said. Once the GST bill is passed, there are a number of back-office operations that will need to be altered in all businesses.
Invoicing patterns will change and there will be greater need for training, validation and strong audit support, Shah adds.
Giving an example of the need for improved discipline, Sandeep said assessees will not be entitled to revise their monthly tax return if they make a mistake, and their tax liability will be frozen for that month even if there is a mistake. Shah said there may be need for greater working capital pointing to the provision that transfers of stock to branches will attract tax (which is not the case under the current regime).
The new rules also require assessees to be ‘watchmen for all their service providers’ since their tax dues will be cross-checked at the government level.
N.A.Shah Associates, a boutique advisory firm with 50 years in the field of Direct Tax, audit and business advisory services announced the merger of N.K.Sheth & Company, a reputed advisory firm with expertise in indirect taxation, with N.A. Shah Associates. The merger will see a combined entity of 8 partners, 50 chartered accountants and a total of 125 members, Sandeep said.