With a little over a month remaining for the roll-out of the Goods and Services Tax (GST), concerns over preparedness of taxpayers — especially small and medium enterprises (MSMEs) — continue. Designated technology providers, known as GST service providers (GSPs), cite unfrozen rules and lack of general awareness as the primary reason.
GSPs have widely interacted with various kinds of businesses as they are the designated application developers through which a taxpayer can connect with the GST Network (GSTN) server. While GSTN, which has built the IT backbone for the new tax regime, would provide its own tool for filing tax return under the GST, GSPs will ensure that custom-made front-end applications are available for different needs of businesses.
A taxpayer can either directly file return through the GSTN or can use any of the 34 GSPs applications as they are authorised to connect with the server.
Although some experts agree that big businesses are in better shape than smaller ones, they argue that most such companies have multiple smaller suppliers, whose lack of readiness could adversely affect the whole supply chain, thus impacting big firms.