Leading B2B commerce start-up Moglix, today announced the launch of its GST (Goods and Services Tax) technology for the manufacturing sector.
In its endeavor to boost the manufacturing sector, Moglix aims to empower SME to large suppliers and buyers through its GST technology to file indirect taxes seamlessly, while maintaining a close vigil on the 100% reconcilability of the entire value chain. Recently, Moglix partnered with a couple of GSP applicants to demonstrate its GST technology to the GSTN (Goods and Services Tax Network) panel for taxpayers and businesses to achieve 100% compliance.
Moglix has been working with 200+ large enterprises and 40,000+ SMEs on their supply chain and B2B commerce, powering them with its integrated digital supply chain technology. Its technology is uniquely placed to gear them up for the GST compliance challenge looming large from the next financial year.
With an increased focus of GOI on indirect tax collection and leakage, this is going to be an “adapt or perish” choice for everyone in the ecosystem.
“Taxation and compliance have been a long-standing pain point in the ecosystem where easy and simple technology will help Indian industry scale up significantly, to compete in the global arena”, said Rahul Garg, Founder, and CEO, Moglix.
GST, labeled as one of the foremost indirect tax reforms in the country since Independence, has inched one step closer to becoming a reality from 1st Apr’17.
While the mechanism of implementation is still being fine-tuned, there is an equivocal agreement on its positive ramification across the board, especially in the manufacturing sector. Indian manufacturing is a large sector ($300B) accounting for 17% of the country’s GDP and is a very complex domain from an indirect taxation perspective.
Today, the sector is plagued with myriads of taxations like SVAT, CST, Excise, CENVAT etc., and GST is going to be a welcome change with significant improvement on ease of doing business.
Rahul added: “We believe that GST shall fundamentally redefine the B2B commerce in the country, which in the past has been plagued by the multitude of state and central compliances. Moglix aims to enable a large section of the manufacturing sector to smoothly migrate to the new regime. We dream of the supply chain where we will achieve 100% reconciliation of goods, services, Information, payments and taxation, with highest standards of quality, cost, and delivery”.
GST shall impact manufacturers in multiple ways; first and foremost, it creates a single/central technology infrastructure for indirect taxation for manufacturers. Second, it enables a 100% reconciliation of the tax flow across the entire value chain in a time bound manner.
Third, the tax ERP of every organization will now be maintained centrally inside the GSTN system. These changes shall enable India to get rid of tax leakages in any shape or form in the future and give rise to a true white-economy.
Atul Jain, VP Procurement, Lumax Group (which has INR 2,500+ CR in revenues) said “Dealing with thousands of vendors, their invoices, payments, logistics used to be a challenge for us as it called for significant management bandwidth. We started using the business. Moglix a few months back and it has turned out to be a fresh change for procurement, logistics, finance and IT managers to address all these issues. To our delight, the platform also takes care of GST compliance for our buyers/suppliers which are going to be a massive exercise for enterprises running in offline mode”.
Moglix.com is an Indian B2B e-commerce marketplace that specializes in B2B procurement of industrial products such as MRO, Fasteners, Electrical, Hardware, Pneumatics, Safety items and more. Its aim is to be the largest technology platform where demand and supply can be matched through price discovery and product availability.
Moglix was founded in August 2015 by Rahul Garg, who was previously the Head of Advertising Exchange at Google Asia. Moglix is led by a group of young and motivated individuals passionate about shaping the manufacturing/ B2B commerce landscape in India.
Moglix has raised Series A and Seed funding of INR 38 CR from venture capital firms like Accel Partners, Jungle Ventures, SeedPlus and Venture Highway. The company is backed by Ratan Tata, Chairman Emeritus, Tata Sons as an investor. Recently, SAP Labs identified Moglix as its start-up tech partner for shaping B2B commerce in India.
Source – BWI