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written by | August 8, 2022

Role of GST Software in Your Business - Explained

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Table of Content


The most crucial thing you should be doing is paying taxes on time if you want to protect your company and run it effectively in India. Accounting and billing are thoroughly examined in India's economic environment. To simplify things for company owners and entrepreneurs, the Indian government combined most of its taxes into a single category known as the Goods and Services Tax (GST) which significantly impacts the success of enterprises. 

Building a transparent, dependable, and secure firm in India may be aided by proper GST billing. India's modern enterprises require efficient GST billing software. With the aid of this programme, you may specify the taxes imposed on the sales of products and services generated by your company. It provides you with an extensive and multi-stage accounting of the company's bills that makes the GST component of the company transactions very clear. 

Did you know? GST was raised on certain items by 2% and others, including smartphones and vehicles, by 7.5% from the initial rates set in 2017. 

What Is GST Billing?

Creating commercial invoices while applying the GST is known as GST billing. Ever since the introduction of the GST in July 2017, all businesses in India have used GST invoicing. The GST invoices generated using this technique function as a business tool to show how a vendor or distributor has provided products and/or services through receipts. 

You may create GST invoices listing the identities of the buyers and sellers participating in the exchange of goods and/or services under a certain transaction. It can be done by utilising the function of GST billing software. 

Also read: Learn How to Enable GST in Tally for your Company - Process

In addition, a GST bill provides information on the product's description and specification, the quantity of goods and/or services supplied, buyer and supplier information, conditions of distribution, price per item or per unit, and the date of delivery. Businesses may additionally indicate discounts on specific transactions in some GST invoicing procedures. 

GST billing software enables firms to produce a variety of GST bills. The following are the basic categories of GST bills: 

Tax Invoice

A tax invoice is a legal document that a business issues to the purchaser in a specific deal. It typically contains the names of the parties involved, information about the products and/or services being provided, and other fundamental transactional information for a GST bill

Receipt Voucher

A document created in accordance with Indian business legislation that describes how a company will be paid in advance for the sale of its products or services to a customer. A receipt voucher acts as proof that advance business deposits have been received. 

Refund Voucher 

Suppose the company is unable to provide the products and/or services as outlined in the provided terms of trade. In that case, this documentation is used to return the advanced money to the customer per GST legislation. 

Bill of Supply 

A specific kind of invoice is sent to the customer by a registered firm to provide goods and services free from GST under the Composition Scheme. For all GST-exempted products and services specified on the list, firms must submit a Bill of Supply rather than a Tax Invoice

To ensure the legality of their company in India, a business owner must execute correct GST billing and generate the required kinds of GST bills. The generation of GST invoices is made simpler and more effective with the aid of GST billing software. 

For instance, by providing customisation tools and creating more than six different types of GST invoices, an online platform for GST billing aids local firms in India in issuing proper GST bills and tax invoices. Given that Indian small enterprises are under-resourced and under-skilled in technology, such portals and accounting software might greatly assist them. 

Role of GST Billing and Accounting in India 

There must be reasons why firms in India want GST billing software. Getting a GST billing and accounting system in place is crucial for Indian firms in a number of ways. 

Using the example given above, you can see how GST accounting software may assist a local business that lacks technical support for its GST billing. In addition, the following three factors are crucial for GST billing software in the Indian business sector: 

ITC Claims 

Indian business owners can receive a set off against their tax on sales from the tax paid on the purchases, thanks to the Input Tax Credit (ITC) system. This benefit motivates businesses to report all their sales and purchases as they can set it off against their liability. Any cutting-edge accounting programme in India can produce GST invoices, which also account for ITC while calculating and filing GST returns. 

Also read: Know Tally Prime Features & Differences from ERP 9Tally

Proof of Supply 

Registered firms use GST invoices or bills as evidence of the goods and services supplied to a customer. In the event of cheque returns, blocked payments, or unpaid balances, a firm may seek payment from the customer based on these invoices, which serve as proof of supply. 

Time of Supply 

The supply of goods and services was carried out at the time indicated by the GST invoices, which are significant business documents. The GST is computed using this time, and the proportion of GST imposed on the specified transaction depends on the date and time. By creating these invoices using online GST accounting software, a firm may keep track of all the important details, including the date or time of transactions. 

All of the benefits of GST invoicing increase the profitability of your company. Let's learn more about how adopting GST billing software may help your enterprise generate even more revenue. 

Benefits of Online GST Billing Software 

Many GST tax and accounting programmes are available online. All of these online resources have a number of advantages that they provide to all of the businesses who use them. Large businesses and other commercial organisations in India are implementing online GST software having the following advantages. 

  1. Shows the Bigger Picture of your Business’s Financials 

The GST accounting software manages all of the company's accounts, including ledger accounts, accounts payable, and receivable accounts. It is configured to give the business owner a clear picture of the enterprise's financial health. 

  1. Analyses the Performance of your Business 

A small firm must continually assess its operations to make sure they are on the right track to meet its goals and objectives. While humans may occasionally overlook some little detail, GST accounting software is very accurate and aids the management in making choices based on the programme's financial data. 

  1. Easy to Use – Anywhere and Anytime 

The conventional accounting software cannot be used remotely at any time. It has a number of other issues, including: 

  • Both the system's database and the programme itself are out of date 
  • Only operates on computers, and since data is frequently moved from one location to another, such as from a workstation to a flash drive, malware and viruses may easily infect it. 
  • Limited user access- this prevents important stakeholders from monitoring the most recent financial data and consumer information. 
  • Backups are typically expensive and difficult to maintain. 
  • Software upgrades are typically complicated, time-consuming, and quite expensive. 

Also read: A Guide on How to Maintain Accounts With or Without Inventory in Tally ERP 9

Because it can be accessed from any device—tablets, smartphones, and laptops with an active internet connection—GST accounting software continues to be a cheap and incredibly simple solution to boost the efficiency of your business. It offers a comprehensive and well-organised solution to always keep in touch with your business. 

  1. Stay Informed and Up-to-Date

Business owners are now more informed and up to date on the relevant GST rates and duties because of the online GST software. 

  1. Tax Planning 

With the use of the software's web features, firms may learn how to plan their tax obligations by switching the locations of their trade. By utilising these online billing systems, small and medium-sized businesses in India may pre-plan their taxes strategies. 

Furthermore, if you operate an export firm, online GST billing software may help you increase output while planning to keep a minimal impact of tax on your products. 

Now that we have discussed the various benefits of using GST software let's also understand some important features to have in your GST software to reap its maximum benefits. 

Important Features to Have in Your GST Software 

Security 

Undoubtedly, security is one of the most fundamental necessities in the modern computerised world. A secure software programme will protect confidential business information and steer clear of any deal that can endanger your company. We have seen how the WannaCry computer virus, also known as CryptoLocker, affected all machines worldwide. Therefore, you must ensure that the GST software you choose is quick at completing GST returns and safe in terms of data protection. 

Multi-Platform Adaptability

It has been proposed that invoice validation ensures each registered taxpayer in the distribution chain files their GST returns on time. This will directly affect how well-regulated enterprises are rated. As a result, the GST software you purchase should be enabled on several platforms and available from a workstation, tablet, or mobile phone whenever necessary, increasing the convenience of completing returns online. 

Adaptability 

Many small and medium-sized organisations use bookkeeping software for their accounting. Setting up fresh master data in another programme (GST software) is not a viable approach in such a circumstance. The GST software has to be flexible enough to interact with current systems and provide a smooth experience. Different independent systems operating in warehouses will again only drive-up operating costs for organisations. 

Insight 

A registered taxable individual in one jurisdiction must submit 25 GST filings every fiscal year under the new GST system. If we look at the components of the current businesses, we find that the majority of brands have a global client base. We can see from the example of an internet business that operates all over the country. So the business would be required to file 25 x 29 (29 states) = 725 reports in a single fiscal year. Two returns each day on average! Given everything, this is the leading cause any GST software you evaluate should be able to inform the customer of each return period. This will ensure that no deadline is skipped and your firm continues to operate smoothly. 

UI and Reporting 

After discussing all the characteristics, a major aspect that every user widely praises is a fluid user interface (UI). This encourages transparent and dynamic activity. Real-time data might help you avoid overstocking and understocking, which could reduce your need for working capital. Furthermore, for certain firms, the number of clicks required to complete a particular task is a metric for evaluating new software. Such requirements must be met, and good GST software must adhere to the minimal UI concept. A complex software would also require you to train your employees, which in turn drives up your costs. Also, you need to check if the software can generate all the reports you require. So, ease of navigating with the user interface (UI) and accessibility of relevant reports are important while choosing the right software.

Also read: Materials Consumption Summary in Tally

Conclusion 

GST software is a safe and effective alternative for all of your company's requirements. It may eventually serve as a one-stop shop for all financial and compliance requirements. It aids in raising bills and controls all incoming and outgoing supplies for the company. Additionally, it keeps track of the record book and guarantees a smooth transaction. You may link it with your ERP programme to eliminate the requirement for mechanical setup. It is an all-inclusive company management tool that can significantly assist you with your daily operations. In addition to saving money, it will increase your productivity at work. 
You can use the Biz Analyst application to manage your business effectively. It syncs with Tally data, making it easy to access even if you’re offline or on the go. You can manage the accounts, create ledger entries, access business reports, and more to keep your business on the right track.

FAQs

Q: Is GST mandatory for all businesses?

Ans:

Before the introduction of the GST, every company with annual revenue of over ₹5 lakh needed to register for VAT. However, every company that has a fiscal year revenue of more than ₹40 lakh is needed to register for GST.

Q: Who is eligible for GST?

Ans:

Any firm with a turnover of at least ₹40 lakh must register for GST, as per the Goods and Services Tax Act of 2017. The GST registration barrier for hilly and the North Eastern states is ₹10 lakhs.

Q: How is GST beneficial for consumers?

Ans:

GST lowers indirect taxes and tax-on-tax. Eliminating redundant compliance requirements like VAT, service tax, etc., increases outflow. With the introduction of GST, the outflows have been significantly decreased, eliminating the taxation's cascading impact.

Q: What is GST?

Ans:

Goods and Services Tax is referred to as GST. It is an indirect tax that was implemented to replace various previous indirect taxes, including the value-added tax, service tax, purchasing tax, excise tax, and others. GST is a tax that India imposes on the delivery of specific products and services, and there is just a single tax which is imposed uniformly in India. 

Q: What are the objectives of GST?

Ans:

  • To implement the "One Nation, One Tax" philosophy. 
  • To include the majority of India's indirect taxes. 
  • To stop taxes from growing in a spiral. 
  • To prevent tax evasion. 
  • To broaden the pool of taxpayers. 
  • To develop online processes that make doing business easier. 
  • To offer an enhanced distribution and logistics system.

Q: What are the principles of GST?

Ans:

  • As opposed to the current concept of origin-based taxes, the GST is based on the concept of destination-based demand taxation. 
  • It is a dual GST where the Central government and the States both impose tax at the same time on the same basis.

Q: What are the benefits of GST for software companies?

Ans:

GST streamlines the taxation system and permits centralised identification. Small enterprises now have the opportunity to submit their tax filings on a convenient online platform every three months.

Q: How many types of GST are there?

Ans:

India now has three different forms of GST: CGST, SGST, and IGST. This straightforward separation reduces indirect taxes by identifying interstate and intrastate suppliers.

Q: What is the role of GST software in India?

Ans:

All of the GST billing liabilities are taken care of by GST software. You may create a variety of invoices, from detailed invoices to those that include several items and varying tax rates. 

Q: What is GST software?

Ans:

The companies need GST software to manage their taxation procedures efficiently. With the aid of the most recent GST compliances and GST verification, this programme assists in tax computations. Organisations may quickly and easily file their GST returns using this programme.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.