2) Revamping Business Model : GST will offer immense opportunity to address current business model with settled tax base across states. This will open up market opportunity to address and remove business barrier to reach out from City to State, State to National and from National to Export level market place. States and Businesses will focus/raise voice more on raising infrastructure as point of attractive investment rather than playing on differential tax rates. Therefore, an evolving, differentiating & flexible business model in entire value chain will be key to address market segment with generation shift is inevitable. Businesses need to address consolidation, M & A, slump sale and restructuring across their business verticals to remain on right growth curve for time to come with efficient capital & productive people involvement.
3) Technology as a great enabler & leveller : One’s business, pricing and positioning will be driven more by “ dynamic ” business model rather than product/services itself with technology as enabler. With Compliance on return filing under GST taking priority, everyone’s data at Invoice level will be available in so called “ public domain “ with GSTN. Businesses will always be under watch and compliance tracker will assign the ranking which is reflective of your current processes enablement via technology. Therefore, whether big or small, businesses need to create level playing field on information flow to support and sustain each other by identifying one’s business in entire value chain.
Hence technology as a great leveler will be key driver of “Compliance centric invoicing pattern” than the “ Relationship based invoicing pattern” prevailing at present bringing desirable level of revenue on every transaction to Govt.
4) Big Data Driver : GST push in terms of returns, information submission with Government’s current digital push will create huge data room across sectors, segments. This need to be further segregated by Government with nodal agencies to publish well documented research assisting in robust policy making decision with closer eyes on GDP, Financial & Economic parameters with preventive, interventions at industry/government level checks on health card of micro/macro indicators possible. More cooperative federal & state level structure will emerge with better allocation of development funds and tax collections.
5) Mindset - Addressing Dynamics & Change : GST will be big driver of efficiency in entire value chain across allstakeholders ( including Govt) and any “ adjustments “ on pricing, positioning & penetration stand needed to accommodate new business levers This need to be more more proactive than reactive. Obviously, this will lead to more transparency in business environment leading to change mindset from “ resistance “ to “ accommodative “ across all stakeholders and this will be key shift for all players with no option left. Level of corruption and expectations of stakeholders will come under deeper scrutiny. There has never been time like this for seeking collaboration between business entities and reaping reward/return out of these collaborative partnership.
Authored by : Mr Sanjay Gaggar – Founder Partner & CEO, ixCFO Services Pvt Ltd