Application of the GST patch is just a part of an elaborate and complex procedure. In addition to its deployment, the GST implementation process would consist of:
Tax calculation procedures are likely to require a major change to accommodate the new taxation requirements. The appropriate consideration will be required to fulfil the monthly tax returns. The required modification should be scalable and adaptable to future changes in the Indian financial environment.
The tax credits from existing deductible taxes, such as excise, service tax, Value Added Tax etc., will need to be updated or distributed to the appropriate account as per the directives of the new tax system.
The appropriate reports will need to be developed based on regulatory requirements. The necessary changes may also be required in the existing forms, such as contracts, purchase orders, quotations, invoices, etc., to reflect the correct taxes.
Apart from the above, GST may not only affect accounting system but all systems that feed data into accounting system. For example, supply chain documents require matching with Tax Invoice and Purchase Tax Invoice, then the entire system flow for matching fields may need to re-design due to the changes in process logic and calculation sequence.
Companies or business house should prepare there accounting system should ready with the GST structure to avoid any inconvenience.