With the GST expected to be rolled out from September this year, there is a scramble among the software providers to have a bigger pie of the MSME segment whose invoicing and tax compliance IT requirements are estimated to create a Rs 36000-crore market.
Currently, only 90 lakh dealers out of the about 1.5 crore are using software for invoicing and filing returns and the rest are yet to adopt technology for this purpose, according to Mohit Bhambani, chief executive officer of city-based KDK Softwares. However, Bhambani said, there are about 1.6 crore MSMEs who are still not in the tax net. “GST will bring most of the more than 3 crore dealers into the tax fold and create a software market size of Rs 36,000 crore. Under the new regime companies would be required to show the tax they have paid while purchasing raw materials to claim deduction from their tax obligation,” said Bhambani.
The tax compliance, accounting and invoicing software market is mostly concentrated in Bengaluru and Jaipur, accounting for 90% of the companies who are now building on capabilities to offer GST solutions. While the southern city is home to companies like Cleartax, Winman Software, and Tally Solutions, Jaipur also has the likes of KDK Softwares, CompuTax and Saginfotech leading the pack.
Times of India, 7 February 2017