GST is going to hit your cash flow. While preparing cash flow, keep following points in Mind:
- IT Cost: All Accounting Software Companies are going to charge you. Tally in the form of annual licence fee to update tax masters of GST. SAP is going to charge Rs. 15000+ per user. Since impact of GST would be on each business area, all domain users of FICO, MM, SD, AR, AP will need GST Ready System. So Be ready to get a big hit on your IT Cost.
- Professional Fees: Service Tax Client who are paying Rs. 500 to Rs. 3000 pm at present, be ready a hike of 3 to 10 times as compliance is going to increase from 2 returns to 37 returns. Also in many areas cost of professional advice.
- Training Cost: Many companies have to invest in training of staff working in purchase, sales, accounts & tax. Not only money but opportunity cost of working hours lost would also impact business. 4. Many companies keep changing their priorities from Payroll to Taxes & Payment to Vendors based on urgency. But now they have to maintain balance. Customers will force to pay taxes on time, so they can avail input tax credit. Have to pay vendors on time so that you can avail input tax credit. Matching of GSTR-1 & GSTR-2 is going to change rules of this game called Cash Flow.
Write-up drafted by – ACMA Sukhvinder Singh Bhatia (https://www.linkedin.com/in/sukhvinder-singh-bhatia-424884b6/recent-activity/)