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Startups Find Filing GST Returns A Herculean Task Amid Coronavirus Lockdown

Startups Find Filing GST Returns A Herculean Task Amid Coronavirus Lockdown

 

Work from home is and should be the norm given the critical situation in India today. However, with this comes a few challenges for startups and even bigger corporates. One such challenge faced by companies is that the employees who take care of filing tax and GST returns and generating e-way bills are not able to access their office systems.

While the safety of the employees is the primary concern for the startups, they may face compliance delays due to this. The challenge is especially high for early-stage startups with limited access to financial tech applications.

Limited Resources And Complicated GST Process The process of filing GST itself from consolidating bills of expenses and purchases from different teams, validating and entering on the accounting systems, calculating GST due from sales and more is complicated. And, it usually happens in the last week of the month and under the current situation, it could be difficult for a lot of companies.

“A lot of people use systems like Tally ERP which is not very ‘online’ or remote-friendly. Invoices are in the office, and people have not taken them home. In a lot of industries, there are policies that prevent people from carrying sensitive financial info out of their offices,” said Mohammed Iqbal, founder, WaterScience.

Another imminent concern could be liquidity itself, as a huge part of receivables collections also happens towards the end of the month. “How will you pay GST if you don’t have money in the bank?” asks Iqbal. 

 

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