With the introduction of Goods and Service Tax, India took a giant stride towards its long-standing dream of making India fully digitized. By bringing various taxes under the huge umbrella of GST, the new tax regime has not only simplified India’s complex indirect tax structure but it also paved the way for automation of the age-old taxation system. But the successful implementation of GST across diverse Indian regions is a daunting task, as not all Indians are completely aware of benefits and processes related to GST. Besides this, the existing IT infrastructure of Indian enterprise is not yet upgraded to comply with new online tax regulations.
To simplify and automate the process of filings GST returns and to maintain compliance with the new tax regime, a specialized GST software is a must for all businessmen. GST compliant software not only simplifies the whole process of filing GST returns but it also handles all finance-related tasks such as invoicing, inventory management, job work billing, etc. This frees up the time of businessmen so that they can concentrate on their core business functions of producing, marketing, and selling goods or services in the market.
Below are a few reasons why today’s businesses should look out for complete GST software which conforms to all GST norms.
GST software helps in accelerating digitization process:
Automation of business process or digital transformation is the need of the hour as it can streamline your business, increase service quality, reduce the turnaround time, and contain costs. GST was launched with the sole intention of making the entire indirect tax filing system online. Experts thought that tax automation will bring transparency in the system and will reduce the possibility of willful tax evasion. The GST software automates and streamlines the entire process of GST right from registration to filing of returns. Under the GST regime, it is mandatory to file all your GST tax returns online. This has done away with the need for furnishing tax returns in paper forms. The process of digitization of taxation which began with online filing of tax returns under the GST regime was further accelerated by introductions of e-way bills and e-invoicing under this new system.
Ease of maintaining documents: Under the GST system it is mandatory to fill all documents online. Every registered taxpayer needs to maintain relevant documents such as invoices, bills of supply, delivery challans, credit notes, debit notes, receipt vouchers, payment vouchers, and e-way bill. Additionally, there must be a separate record of each activity such as manufacturing, trading, and providing certain services. Managing these documents manually will be tedious and frustrating. GST software allows you to manage all these documents with ease. With the help of software, you can classify all documents based on their type and stored them in various folders in accordance with the provision of GST law.
Maintaining compliance with GST is of utmost importance: Maintaining compliance is of utmost importance under the new tax reform. Small and medium-sized enterprises are finding it difficult to adopt post-GST effects like destination-based tax structure, multi-state conformity, and different GST rate slabs. Thus GST compliance software will help small and mid-size entrepreneurs to overcome these challenges. The software will not only help companies in complying with new rules and regulations set by GST but also support them in maintaining correct financial records to meet future tax obligations.
GST software will systematize your warehouse operation: GST software will make the existing undisciplined movements of goods and services more systematic and streamlined. A well-organized warehouse helps you figure out exactly how much inventory you need to have on-hand. This will not only prevent the shortage of items in the warehouse but also allow you to store enough inventory without overstocking it. This will maximize the utilization of your warehouse space and at the same ensures that it is possible to store as many products as possible in the available space.
Data security: Data security is of utmost importance in today’s digital world. Any information pertaining to customers and vendors that you enter in your software needs to be protected from thefts and cyber attacks. There have been instances where such sensitive information has been misused by hackers causing consequential loss to your business in terms of money, efforts, and loss of valuable information. Good GST software developed by adopting best coding practices ensures that all your data is stored safely. It provides the highest level of security to your accounting and financial data by assigning passwords, taking back-up at regular intervals, and safeguarding it with anti-virus software. In addition to this, all your banking information and confidential data are protected from the prying eyes of hackers by encrypting them with a digital signature.
Flexibility of Data Import/Export: Many small and mid-size organizations have started using ERP software for performing day-to-day business activities such as accounting, procurement, inventory management, monitoring sales etc. In such a scenario, it is of utmost importance that your new GST software fully complies with existing ERP software so as to facilitate the smooth transfer of data from one system to another without having the need for re-entering it. This will not only save the valuable time of your workforce but also brings visibility and transparency between two departments in the same enterprise.
Facilitates the entry of HSN/SAC code: Under the GST regime, all goods, and services supplied in India has been classified under the HSN (Harmonized System of Nomenclature) /SAC(services accounting code). In general, goods are classified under the HSN code whereas services are classified under the SAC code. This six-digit code which is universally accepted is also used for fixing different GST rates slabs. It is therefore mandatory for each taxpayer to specify relevant HSN/SAC code in the tax invoice for the goods or services supplied by them to the recipient. It becomes a challenging task for taxpayers to enter these codes manually as first they need to search the relevant HSN/SAC of a particular good or service on various government sites and then enter it in the invoice. However, with GST software the taxpayer can easily search and select the relevant HSN/SAC code from the drop-down list for the goods/services supplied by them and enter them in the tax invoice.
Auto calculation of taxes: GST is a destination-based tax which means the goods or services should be taxed in the jurisdictions where they have consumed rather than the place of their origin or production. This makes the whole process of levying taxes a little bit complicated. But with the help of GST software, you can locate the applicable GST rates and calculate their tax liability automatically. This enables the taxpayer to determine the tax payable accurately and avoid errors in the calculation of taxes. A GST software provides a list of GST rates such as CGST, SCGST, UTGST, IGST, and CESS applicable under GST. You can select the applicable GST rates from the drop-down list, and the GST software will automatically calculate the amount of taxes levied on that goods or services. Thus small business owners and tax professionals, who had to calculate the amount of tax manually, can now calculate the tax with the help of GST software. This not only saves the valuable time of taxpayers but also reduces the possibility of committing errors while calculating the payable tax amount.
GST ready invoices: All taxpayers registered under the GST needs to generate invoices as per the rules specified in GST Act. A GST compliant tax invoice should include details such as:
1. GSTIN of the supplier and the recipient
2. HSN/SAC Codes
3. Different taxes applicable under GST such as CGST, SGST, IGST, UTGST
Entering the details of these fields manually not only requires time and effort but it also increases the possibility of committing errors on the part of the taxpayer. However, using a GST software you can create GST ready invoices within minutes. The taxpayer can either use a pre-defined tax invoice template provided by GST software or can design their invoice as per their company’s requirement.
In a nutshell, you need GST software for keeping your business is compliant with rules and regulations set by the new tax regime. There are many GST software available in the market but very few of them will be able to address all your compliance needs. One software that needs to be mentioned here is Sky ERP GST Plus. Built on cloud platform this state-of-art software will help you to gain better control over your business operations with full GST compliance.