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Indian techies told to prepare for tax sprint

Banks, government given 30th September deadline for tax announced three weeks ago

National Goods and Services Tax means everything needs tweaking India recently introduced a national goods and services tax (GST)* and the nation's techies are now scrambling to prepare for its implementation.

Each of India's states previously levied their own GST at their own rates, which rather complicated matters for business not least because crossing some internal borders meant checking appropriate local taxes had been settled.

Prime Minister Narendra Modhi made a national GST a key reform initiative, as it is felt that one tax will increase government revenue, chip away at the black economy and reduce administrivia burdens.

The start date for the national tax has been set for April 1st, 2017. That's no joke for Indian businesses which have to get ready to collect, consolidate and pay tax by that date.

The good news is there's impetus from the top: India's revenue secretary Dr Hasmukh Adhia yesterday called a meeting of “various stakeholders” to ensure their GST-related information technology efforts are under way.

The Reserve Bank of India (RBI), Central Board of Excise & Customs, Heads of Government Business and IT Heads of 29 Banks and Goods and Services Tax Network (GSTN) took part showed up to the gabfest.

The notice describing the meeting says “All authorized banks were directed to ensure that their IT systems are in place for networking with RBI, GSTN and the accounting authorities of Central and State Government authorities, latest by 30th September, 2016.”

No pressure, then, with that very comfortable deadline. And explanation of why any Indian techies you work with might be a little busier than usual in the next few months. ®

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