Preparing IT for GST Era

GST deployment is being seen as a transformation opportunity for the taxation and supply chain teams but the critical role of the CIO is being missed

The passage of Constitution Amendment Bill (CAB) for GST in the Monsoon Session (after a decade long back and forth) has been lauded and welcomed by industry and economic pundits. It is being touted as ‘the economic reform’ in the country post Liberalization in 1991. The industry is giving thumbs up to GST as a mood is created that India will become One tax country and it will improve the business environment. We however, need to be cautious that the GST being introduced is a little different from its avatar of other countries.

Implementation of GST will have significant impact on business organisations as their processes would need to be compliant with GST. This would require organisation to automate their processes through their existing transactional systems. GST transformation is being seen as a transformation opportunity for the taxation and supply chain teams but the critical role of the CIO is being missed.

Many organisations are not giving importance to the IT system readiness which in due course of time will be a critical reformation. Although IT readiness would necessarily lag the finance and supply chain assessment but in terms of timelines and the execution IT would remain the most complicated and time consuming part of the overall transformation. There would be dependencies on multiple external and internal agencies. 

SOME OF THE ASPECT WHICH THE CIO’S OFFICE NEEDS TO NECESSARILY CONSIDER ARE ERP/