Logo Infosoft : PARTNERING FOR SUCCESS
Q. With India’s transition to GST, what are your thoughts on the key achievements of GST?
The immediate first positive result of GST rollout has been a number of new taxpayers who have registered during the past one year since GST’s launch. Within eight months of its introduction, nearly 68,00,000 new companies were registered under GST. These organizations were doing business without being covered under the previous VAT or Sales Tax regimes.
GST implementation has also brought in a new awareness amongst small and medium-sized enterprises (SMEs) and micro, small and medium-sized enterprises (MSMEs). These organisations have now understood and accepted that GST is good for business in the long run. As more and more players become part of the organised sector, it will also give an accurate picture of the Indian economy.
At another level, GST is going to substantially contribute to the digitalisation of the Indian economy. In the GST world, there is no manual transaction and no discrepancy, Filing GST returns entails capturing data digitally only. This compliance demand for GST, thus, is providing a tremendous boost to the digital literacy of every business entity in India. GST will prove to be the primary driver of government’s digitalisation mission at the ground-level.
Q. Are there any issues still being faced by businesses in India, especially by MSMEs?
The GST Council has introduced far too many changes in a very short timespan post-GST rollout. As a result, many MSMEs have still not started taking the new tax regime enforcement seriously. MSMEs are not clear about how strict the law enforcement will be or the repercussions of not filing returns. You may hear questions like: “Do I need to file returns or will the government extend the deadline?” “What bad can happen to my business if I do not file my returns?” However, this situation will improve over a period of time.
Many MSMEs have traditionally not been used to capturing each and every transaction digitally. For example, in shops and kiosks, the technology adoption for data capture at the cash-counter level has largely been missing. These businesses are now struggling to figure out how to do it.
They are facing two major issues on this front. The first-time taxpayers (FTTs) are facing a high price barrier: they have to buy computers, necessary hardware and allocate space—which comes at a high price in urban and semi-urban markets—within their shops to place these computers. Secondly, they are worried about getting IT savvy people—who can do their transactions digitally—without spending too much on human resources or overheads. Lastly, buying specialised software, installing it, learning to use it, and managing it is perceived to be not only costly but also time-consuming and counterproductive.
Q. Given these issues, how is Logo Infosoft helping MSMEs embrace digitalisation?
Given this scenario, an MSME entrepreneur wants a technology that can address these issues effortlessly and effectively. Logo’s Vyapari software is not only user-friendly but also does not call for buying any computing hardware such as desktops or laptops. Since Vyapari can be used on a mobile phone, it does not occupy the priceless office-space of MSMEs.
India has a vast pool of young and semi-skilled human resources. As Logo’s Vyapari software does not require specialised training, MSMEs can easily employ these resources at a cost-competitive advantage and they can use our software without training. Vyapari automates the entire billing to inventory to GSTR filing process with no hassles.
Logo’s Vyapari software is not only user-friendly but also does not call for buying any computing hardware such as desktops or laptops. Since Vyapari can be used on a mobile phone, it also does not clog up the priceless office-space of MSMEs
Q. Has GST created any new opportunities for partners?
In the earlier tax regime, a shop owner would simply send his bill-book to the CA and the CA would manage everything. There was no need for item master, or reconciliation, etc. But now with digitalisation, CAs cannot do anything without access to data. This calls for a great deal of involvement of CAs in the new scheme of things.
Secondly, with the widening of the overall tax-base, several FTTs have entered the GST net. As a result, there has been a gigantic surge of queries and difficulties. FTTs require extensive hand-holding, unlike the established players who are used to filing returns and paying taxes. This vast pool of FTTs will need a range of services where our chartered accountant (CA) and tax consultant partners can play a major role.
Q. What is Logo’s channel structure at the moment? Any channel plans?
Logo Infosoft already has a presence in various parts of the country through two partners: Apra & Associate in North and Saraswati GST Solutions in South. However, we are looking at expanding our channel-footprint further by inducting new partners in West and East as well.
The festive season has just started. We kicked off the season in style with our hugely successful Independence Day Freedom 499 offer for Vyapari partners. Ganesh Chaturthi and Onam are round-the-corner—to be followed by a series of festivals over the next four-five months. There will be many more exciting and profitable schemes for our partners and customers, going forward.
Q. What kind of support does Logo offer to its partners?
Logo Infosoft provides sales onboarding for all partner personnel, solution and delivery onboarding for them, and comprehensive training. We offer hand-holding support to our partners in their first three implementations to ensure accuracy and improve the success rate.
For Vyapari, our value proposition is helping partners expand their customer-base with ease. Let’s say, a CA has three employees and (s)he handles 200 customers with three people. With Vyapari, he can handle 1,000 customers with the same three people as Vyapari can eliminate several laborious and time-consuming jobs such as identifying double entries, paper to digital conversion, collecting data from customers, etc.
For our enterprise products like Jugnu ERP and Vira DNMS, our partners get a retainer market, i.e. recurring revenue opportunities. Logo Infosoft offers healthy profit margins—higher-than-the-market-average—to partners. Moreover, our products help them create new services to their customers such as implementation service, post-implementation service, ad hoc services, report building, etc. Lastly, partners can also find many cross-selling and up-selling opportunities by allying with Logo Infosoft.