The new indirect tax regime GST came into effect on 01 July 2017. Before GST there were multiple types of taxes like Excise duty, VAT, Service tax, etc. These multi-level taxation systems have resulted in cascading effects of tax, that is, charging tax on tax. GST subsumed these central and state-level taxes and eradicated the drawbacks of the old tax regime.
The government might have simplified the process, but a common person and businessman might find GST complex to understand and handle. The best GST software in the market will meet the basic and complex needs of business people and professionals.
This article will help you understand the advantages of GST software to the business and the different features that are provided by the software.
Did you know? Apart from pre-packaged GST software, one can get highly customised GST filling software. There are both types of software available in the market. The pre-packaged GST software is ready to use, and this software can easily be streamlined with the organisation's existing software. At the same time, customisable software is modified and designed per the user's requirement.
What is GST Software?
GST involve many procedures and compliance requirements, which are pretty confusing for the taxpayers. These GST software help professionals, individual business owners, firms and taxpayers manage tasks relating to GST. It is pretty difficult to keep up with the recent changes and amendments. The software is regularly updated per the recent changes in the GST law and thus supports taxpayers, professionals and business owners in correctly calculating tax.
All processes under GST are carried on digitally, from applying for GSTIN to filing monthly and quarterly returns. The software tackles the tedious task of preparing returns and uploading them to the GST portal, and they simplify the GST filing process making compliance smooth and effortless.
What are the Features of GST Software?
- GST Invoice: Certain details are to be mentioned in the GST invoice. The software generates invoices as per the rules and regulations of GST law. It is mandatory to state GSTIN, HSN code, applicable GST rate, net amount and GST amount separately on the invoice. The software seamlessly generates invoices that display all the necessary information.
- Generating reports: the software generates reports that help file GST returns like GSTR1, GSTR3B, GSTR9 etc. The software import purchase and sales data from its accounting software or details from an excel sheet.
- Tax calculation: The auto tax calculation feature automatically calculates the GST liability of the taxpayer. Necessary information is required to be submitted to the software like applicable tax rates. The software automatically generates reports and invoices with tax amounts and the taxpayer will know the amount of GST payable is pending.
- HSN/SAC code: It is mandatory to mention HSN/SAC code while filing a GST return. For an ordinary businessman, it is difficult to search for applicable HSN codes manually. But by using software one can easily find out correct codes based on goods and services in which business deals.
- Cloud-based feature: with the help of this feature, the user will be able to access their data from anywhere and at any time. The client data is saved on the cloud of the software provider, which the client can access on the go.
- Linking to other Software: the GST software permits users to connect with other software. This feature facilitates the linking of GST software with accounting software or incorporating it with the existing IT structure of the business.
- Security: Software companies understand the importance of their client's data. They provide robust data security. The software is designed with high-level encryption technology that protects the data and maintains its confidentiality.
- Multiple business records: A taxpayer with multiple businesses is not required to use separate software. He can maintain different business records under the same account. It facilitates an overall review of all the business and simplifies GST compliance.
- Filing return: the GST filling software provides a seamless return filling experience. The software automatically fetches data from the accounting software and GST portals like sales invoices and purchase detail from GSTR 2A. And prepare returns and calculate input tax credits. The user is required only to update basic details.
- Multiple device support: Some software provides applications compatible with different devices. The users can easily access their GST details and can carry on their tasks from whatever device they are using.
- Continuous updates: GST regulations are dynamic and prone to constant changes. The companies provide continuous software updates to ensure that the software is per the GST Act's applicable provisions.
Advantages of GST Software to the Users
- Cost-effective: There is comprehensive GST software available to help taxpayers reduce costs. Instead of buying separate software for different purposes, like invoicing, accounting, taxation etc. It is better to get all-in-one GST software that will handle not only generating GST invoices but will also assist in return filing. The taxpayer will be able to save on buying different software.
- Time-saving: Whether you are a small businessman or a big company, everyone is required to maintain different documents, information and records for GST compliance. Manually maintaining all the records and preparing monthly or quarterly GST returns is a time-consuming and overwhelming task. The GST software will make simplify all these processes. It will automatically fetch data from the records and prepare monthly and quarterly returns thus saving lots of time.
- Reconciliation: It is very important to match GST returns and accounting records. GST software has different features that facilitate comparison between accounting data and GST return data. Ideally, there should not be any differences. The regular reconciliation will help in the timely recognition of any error or mistake in the records.
- Accuracy: The tax is auto-calculated by the software at the end of the period. The software is regularly updated as per the recent changes in applicable regulations. Thus there are zero chances of error in the tax liability thus helping in depositing the correct tax amount timely.
- Customisation: Some companies provide software customisation facilities. It benefits huge companies that require to incorporate GST modules in their existing IT ecosystem.
- Easy and simple: It has simplified the complex return filing procedure. A person with basic GST knowledge too can easily file GST returns.
Also read: Meaning and Scope of Supply under GST
Things to Keep in Mind While Opting for the GST Return Filing Software
- Requirement: First, assess your requirements. Choose features of the software depending upon the nature and size of the business. A large business will require multiple options that might be useless for a small service provider or seller.
- Budget: The second step is to plan your budget. It is important to know how much you can spend on the software. There are free and preview software options available in the market. Depending upon the need and budget, one can choose the best-fit software.
- List of vendors: Search for different vendors and the GST software that are popular in the market. It will help in easy comparison and decision-making.
- Venders credibility: It is important to know your vender. There are lots of GST software development companies in the market, and it is a greater chance that a company with a long-standing and good reputation will provide efficient software.
- Simplicity: Check whether the software is easy to understand and use.
- Security and accessibility: the software should maintain proper confidentiality and support different devices so users can be accessed from different devices.
- After-sale service: Customer support services are very crucial. Check whether it provides 24x7 customer support and how they handle queries and problems that might arise post-purchase.
Some popular GST compliance softwares
- Khatabook: It is user-friendly accounting software that is super easy to use. The taxpayer can maintain records of their customers and can generate GST invoices. The Khatabook has revolutionised bookkeeping among small and medium enterprises. A small entrepreneur can easily maintain records of different customers and easily know the payment due from them. It provides different reports that can be downloaded, These reports help in preparing GST returns. Users can maintain records of multiple businesses separately in one single app.
- ClearTax: This is GST filing software for Tax Consultants who have to maintain GST records and file returns for their clients. It is cloud-based software thus data can be accessed from anywhere. It provides more than 25 smart reports that facilitate reconciliation and comparison and thus help in filing accurate and timely GST returns.
- Masters India: It provides different software for e-invoicing, reconciliation, generation of e-way bills etc. It makes return filing less time-consuming. The taxpayer can import sales details and the software will auto-prepare GSTR 1. It reconciles purchase details and generates reports that help in finding differences.
- Gen GST: It is part of the Gen software set and is specially tailored for the Tax consultants. It is available on a desktop as well in a browser version. It provides an unlimited return filing facility and professionals can maintain a database of unlimited clients. It has many GST modules that generate invoices and ensure fast and easier GST return filing.
- GST Hero: Unlike other software, it is not only focused on tax professionals. GST Hero cater services to enterprises, professional and corporates. One of the key features is that it can easily be incorporated with Tally and ERP systems. It automatise the preparation of GSTR 1 and GSTR 3B. Along with GST compliance, GST Hero helps taxpayers in inventory management and generates MIS reports.
- Octa GST: It is designed for taxpayers and tax professionals. One of the challenges in GST return preparation is the reconciliation of invoices. Octa GST’s smart invoice matching and reconciliation feature periodically generate an invoice-mismatch summary. This user-friendly software helps in preparing accurate GST returns.
Also read: Impact of GST on Insurance and Banking
GST software has emerged as a blessing for professionals and business owners. It has simplified the complex record maintaining and return filing process and has eliminated the chances of error in calculation. Now you know about all the features and benefits one can enjoy by using the software. Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.