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GST Impact: Boom in Fintech Software Companies Due to GST Rollout
Goods and Services Tax (GST), India's indirect tax reform, will affect everyone, including businesses of all sizes such as big corporates, small and medium enterprises (SMEs), and startups.
Fintech companies are cashing in on the boom unleashed due to GST implementation. They are going all out to woo clients and customers. Companies such as SAP, Zoho, Microsoft, Tally, Deskera and ClearTax are on the GST bandwagon, luring enterprises and SMEs with GST-compliant software. They claim to help businesses streamline processes keeping in mind GST compliance requirements.
Goods and Services Tax (GST), India's indirect tax reform, will affect everyone, including businesses of all sizes such as big corporates, small and medium enterprises (SMEs), and startups. The change is huge. The GST Network would have 5 billion invoices a month. There are 50 million enterprises in India and 15 million retailers for digitization of sales. Naturally, they will need automation and digital technology to tackle the deluge. Fintech companies are all too aware of this need.
Room for all enterprise software providers in the Indian market
“Indian market is huge and there is room for everyone. All players can co-exist. There will be inevitable transformation due to the coming of GST. Though there will be initial hiccups, we are there to help enterprises and businesses get GST ready. We have done this in GST-compliant countries like Singapore and Malaysia in the past,” says Somesh Misra, VP, Deskera.
From new invoice format to input tax computation and destination criteria, there are a number of new GST provisions which need to be figured by the enterprise resource planning (ERP) software. Fintech companies are claiming to resolve all those GST peculiarities.
GST: Golden opportunity for fintech companies for process automation and business expansion
Indian enterprises have been traditionally shy of technology. However, GST will force them to go for automation and software. A report by Confianzys, a consulting company, said that a majority of SMEs were not aware of ERP benefits. Despite the fact that the scale of operation or management may not be necessary for ERP implementation, companies have to start looking for enterprise tools quickly.
“Software penetration is low in India. Modern software tools can help enterprises make business simpler, user-friendly, and automated. Efficiency would increase and processes will get streamlined,” adds Somesh Misra, while talking about the functionalities of Deskera’s ERP Cloud.
With advent of GST, automation of accounting processes becomes mandatory. And fintech companies are leaving no stone unturned to capitalize on the historic situation that has been created.
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house
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