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GST on IT Services: Things You Must Know

GST on IT sector will be 18% on software services provided by software companies. Click here to know more about GST impact on IT service

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GST on IT Services: Things You Must Know

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  1. KwikBilling SIMPLE & EASY GST BILLING AND INVOICING SOFTWARE

  2. GST on IT Services Things You Must Know While the actual impact of GST is yet to be known, and it might take some time before we get used to or realize the fruits of the new taxing system, for now, at least, we can be hopeful that it will unify and simplify the entire taxing system. The previously designed VAT/service tax regime in the country was complicated because of many taxes, compliance regulations and tax cascading. However; under the GST regime; the entire taxing system is expected to become uncomplicated; especially for the IT sector. Let Us Cover Some Unique Ways GST Will Impact The IT Sector Tax rate Under the previous taxing system, the sale of packaged software used to attract both VAT and service tax. Many taxing system, regulations and cascading taxes used to populate the entire system and make it hard. Let us take an example; If a software can come printed, developed and designed on a CD, DVD or hard disk, then 3 taxes used to apply on it

  3. Excise duty for manufacturing of product VAT Service tax for providing service as software Under the new taxing system, these multiple taxing brackets can be removed. GST on IT sector will be 18% on software services provided by software companies. For entirely software services, the cost might increase. It is expected that once the GST is fully implemented, the existing average tax rate of 25–35% might reduce to around 18– 25. Business Expert IT resources will be on demand. Companies are eagerly looking to sync their existing workforce and process with GST. This means increased infrastructure cost and facelifts in business system. This means a hike in the need for skilled IT resources In many cases companies are redesigning their ERP software that were provided by the IT majors. They are restructuring the entire system so they can accommodate the complexities of calculating GST.

  4. Under GST, there will be a periodic supply OF ERP systems. Freelancers who offer software and other types of services such as designing, app development, website designing etc., used to pay a service tax of 15%; which has now been revised to 18%. So, although the GST rate for the service has been increased, availability of ITC is expected to bring down the operating costs. The overall impact of GST on the IT is expected to be good, however, for small scale service providers, such as freelancers it might take time to see how GST benefits. KwikBilling About the Author With KwikBilling's software, creating invoice is indeed the easiest part of the job. Additionally, you are empowered to manage the invoice and expenses and ensure easy reporting, collect payments too. With KwikBilling's integrated invoice solutions, you would feel just hassle free. ===========================================================================================================

  5. Contact Now: Company : Website : Email-Id : Address : Phone : Pin code : ========================================================================================================== Social Platform: KwikBilling www.kwikbilling.com kwikbilling.com@gmail.com 108, 1st Floor Specialty Business Center, Balewadi, Pune, Maharashtra +91 9713030021 411045 ========================================================================================================== Reference: https://www.kwikbilling.com/blog/gst-on-it-services-things-you-must-know.html

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