Green GST presents a sustainable option

Green GST presents a sustainable option
Green GST presents a sustainable option

A new online tool hopes to make India's Goods and Services Tax (GST) a greener, more digitised solution. In line with the Indian government's Goods and Services Tax (GST) implementation this month, a B2B e-commerce marketplace announced the launch of Green GST - an SAAS-based GST application solution for manufacturing units across India. Aimed at improving transparency and digitisation in the manufacturing space, the tool created by Ratan Tata-backed Moglix claims to provide organisations with end-to-end GST compliance support. The Green GST solution will be offered free of cost for a 30-day trial period to a user or companies with turnover below $4 million. Following the trial, if the user wants to continue, they will be offered costs related to GST Suvidha Provider (GSP) transaction. The cost will be valid for up to 2,400 invoices a year for a single user. The solution has been developed to make supply chains of manufacturing units GST complaint in line with the implementation deadline of July 1, 2017. Green GST leverages Moglix's expertise in digitising supply chains, especially those of manufacturing units. It claims to be a feature-rich solution for filing GST, reconciliation of invoices, maintaining dashboards for multiple plants and warehouses, and managing taxes for various locations and cross-border trading. Moglix will extend its existing commerce eco-system to consolidate small vendors, and create a compliant atmosphere for manufacturing units to operate in. This comes on the back of Moglix's GST filing solution introduced in December 2016 to allow mid-to-large-sized manufacturing companies file and reconcile their GST payments with the Goods and Services Tax Network (GSTN). Rahul Garg, Founder & CEO of Moglix, said: “Moglix's Green GST is aligned with the government's One Country, One Tax vision. Our solution will help India's manufacturing units become fully GST compliant within their supply chain, in an effective and efficient manner. “Through this solution, Moglix hopes to make its contribution to making India future-ready, and also help promote a clean, green and transparent business environment. “In these interesting times, Moglix stands at a unique confluence of expertise in technology and the manufacturing supply chain. We are excited about the tremendous opportunity for our customers to enhance their business footprint using our technology and analytics capabilities.” Subrata Mitra, Partner at Accel Partners, India, the venture that has given seed funding to the e-commerce marketplace, said: "B2B commerce is a fast-emerging space and Moglix has been at the centre of it. “Moglix has been simplifying indirect tax related issues for businesses at the grass-root of supply chain, and with the launch of Green GST they are all set to make the ecosystem GST compliant. We are very excited about the potential scale of the opportunities ahead." Anurag Srivastava, Co-Founder of Jungle Ventures, another venture capitalist that has a stakes in Moglix, added: "Manufacturing as a sector is going to experience many changes and challenges with the roll out of GST. Moglix having dealt with multiple situations in this regard, i.e. export-import, inter-state warehouses, and a 2,000+-supplier eco system, has an understanding of both supply chain and tax complications. Translating this expertise into an ASP is a good move." India's manufacturing sector is the least digitised compared to other sectors in India. Today, only 20 per cent of manufacturing units are using digital in their supply chain management. With GST on the anvil, this number is expected to go up, as it will be mandatory for businesses of all sizes to file their indirect taxes online as per the new tax regime. In making manufacturing units GST complaint, Green GST is also tackling the challenge of making vendors - mostly small manufacturers and traders - ready for the new regime.

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