Moglix has announced the launch of its GST (Goods and Services Tax) technology for the manufacturing sector. Moglix aims to empower SMEs to large suppliers and buyers through its GST technology to file indirect taxes seamlessly, while maintaining a close vigil on the 100% reconcilability of the entire value chain. Recently, Moglix partnered with a couple of GSP applicants to demonstrate its GST technology to the GSTN (Goods and Services Tax Network) panel for taxpayers and businesses to achieve 100% compliance.

 

Moglix has been working with 200+ large enterprises and 40,000+ SMEs on their supply chain and B2B commerce, powering them with its integrated digital supply chain technology. Its technology is uniquely placed to gear them up for the GST compliance challenge looming large from the next financial year. With an increased focus of GoI on indirect tax collection and leakage, this is going to be an “adapt or perish” choice for everyone in the ecosystem.   

 

“Taxation and compliance has been a longstanding pain point in the ecosystem where easy and simple technology will help the Indian industry scale up significantly, to compete in the global arena,” said Rahul Garg, Founder & CEO, Moglix.

 

GST, labelled as one of the foremost indirect tax reforms in the country since Independence, has inched one step closer to becoming a reality from 1st April, 2017. While the mechanism of implementation is still being fine-tuned, there is an equivocal agreement on its positive ramification across the board, especially in the manufacturing sector. Indian manufacturing is a large sector ($300 billion), accounting for 17% of the country’s GDP and is a very complex domain from the indirect taxation perspective. Today, the sector is plagued with myriads of taxations like SVAT, CST, Excise, CENVAT, etc and GST is going to be a welcome change with significant improvement on ease-of-doing business. 

 

GST will impact manufacturers in multiple ways. First and foremost, it creates a single/central technology infrastructure for indirect taxation for manufacturers. Secondly, it enables a 100% reconciliation of the tax flow across the entire value chain in a time-bound manner. Thirdly, the tax ERP of every organization will now be maintained centrally inside the GSTN system. 

 

Atul Jain, Vice-President – Procurement, Lumax Group, said, “Dealing with thousands of vendors, their invoices, payments, logistics used to be a challenge for us as it called for significant management bandwidth. We started using Moglix a few months back and it has turned out to be a fresh change for procurement, logistics, finance and IT managers to address all these issues. To our delight, the platform also takes care of GST compliance for our buyers/suppliers which is going to be a massive exercise for enterprises running in offline mode.”

Advertisement