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Total Views: 68Word Count: 414See All articles From Author The Goods and Services Tax (GST) was introduced in our country on the 1st of July 2017. It is the single-biggest tax reform that has been implemented in our country since independence. GST has subsumed most of the indirect taxes in our country and has sought to establish a single tax regime. Naturally, GST has affected almost every sector of our country 鈥?every major and minor business industry has been affected. Here we are dealing with the impact of GST on the IT sector. Earlier, packaged software attracted both VAT and excise duty of around 5% and 15% respectively. Excise duty was also applicable to the manufacturing of IT products. Under the previous regime, three different taxes were levied on software that came in a CD or DVD or Hard Disk. The taxes were 鈥?Excise duty for manufacturing of a product, sales tax or VAT for sale and service tax for providing service as software that can be downloaded multiple times. Impact of GST on the IT sector 鈥?Registration: Previously, all the IT service providers were registered under the Central Service Tax department and all matters- billing and utilization of credit- were accessed from a single location. Under GST, however, IT services providers have faced some difficulties initially as GST registration and other statutory matters are to be taken care of for each location separately. 鈥?Removal of cascading taxes: Under the previous tax regime, software was listed as both a service and a good. Therefore, IT companies were required to pay both VAT and service tax. Under the present GST regime, businesses are required to pay a standard single tax. This will make life much easier for IT companies. 鈥?Businesses 鈥?Large and small businesses have had to get their accounting systems and ERPs in sync with GST. This has resulted in an increase in infrastructure costs and changes in the business systems. The result has been that many large IT companies have set up teams consisting of their own technical experts, finance experts and another expert from the GST software vendor. 鈥?Input Tax Credit 鈥?Although GST has resulted in an increase in infrastructure and overhead costs for businesses, it has also enabled businesses to avail input tax credit (ITC). Traders who supply goods could not claim the service tax paid on AMCs for their computers and hardware under the previous tax regime.However, it is possible under GST. IT companies maintain servers by expending huge capital to purchase the hardware and spending revenue on repair and maintenance. However, the tax paid on hardware can be adjusted against the tax paid on services and small parts of repairs. 鈥?Export of Services 鈥?India is the biggest exporter of IT services and export of information technology is an important source of foreign exchange. Under GST, exports are zero-rated, and input taxes paid will be allowed as a refund. In GST, one vital aspect is the place of supply. The default rule for place of supply (export of service) is the location of the service recipient when the address of the recipient is available. The ITITES services that come under the default rule are software development, BPO operations, software consultancy etc. This rule will also be applicable to other services like software supportmaintenance and intermediary services. 鈥?Uniform Taxation: The taxation policies of the states used to differ from one another under the previous tax regime. However, after the implementation of GST, states like Jammu and Kashmir are also liable to pay taxes. The IT companies operating in such areas are also required to pay taxes an. Cheap Air MaxJordan 6 For SaleNike Air Max 2018 SaleWholesale Jerseys Free ShippingCheap Jerseys Free ShippingCheap Jerseys ChinaCheap Jerseys WholesaleWholesale JerseysWholesale JerseysWholesale NFL Jerseys