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Know the Importance and Role of GST Software in Businesses

GST (Goods and Services Tax) is a tax that customers must pay when purchasing goods or services. It is recommended that you read the blog to understand the importance of GST software.

For any startup or business, efficiently organizing the business is a key task, and sustaining its efficacy is a must for success. However, some certain requirements and conditions must be met by every business for it to flourish and establish itself in a way that benefits everyone — the consumer and the economy of the country.

To keep your accounts structured, you must make numerous decisions right from the start of your firm. This needs a business accounting method that is systematic and organized. It keeps cash flowing and aids in the future planning and development of the company. In addition, each organization has a responsibility to the country to contribute to raising the country’s revenue and taking all required efforts to make the business successful. For this reason, each country has a taxing system that is prioritized.

GST software’s advantages

The GST Software India primarily assists the taxpayer in determining which taxes apply to him and what he must pay and when he must pay it.

  • We are receiving reminders that will assist you in reducing errors and keeping you up to date on the newest general or everyday issues.
  • You may have all of these benefits for a very little price.
  • Some of the key benefits of GST software include the absence of errors, precision, cost savings, and the ability to accomplish work quickly.
  • GST software will assist the business owner in focusing on their firm and allowing it to develop.
  • The use of online GST software simplifies the calculating process.

What role does taxation play in India?

Each country’s government needs funds to carry out its vital roles and responsibilities. The government will use the monies to build the economy and infrastructure of the country, which welfare projects and plans will determine. A government generates the necessary cash by taxing its citizens in exchange for delivering these services.

Each country’s government implements a specific taxing method to efficiently develop the country’s infrastructure. In India, a comparable taxing system exists, which is implemented in two ways:

Taxes levied directly

Individuals and corporations are taxed directly on their taxable income through direct taxes. These taxes are significant because they are paid directly to the government and account for a major portion of India’s tax collection.

  • The direct tax has a progressive tax structure of its own.
  • It emphasizes the significance of taxes.
  • This tax is imposed on citizens in proportion to their financial circumstances.
  • As a result, social and economic equality is encouraged.

Taxes levied in a manner that is not.

Indirect taxes are applied indirectly on a taxpayer’s income rather than directly on their income when they purchase goods and services.

  • It’s an automated tax levied on all purchases and sales of goods and services in the United States.
  • It is simple and convenient to collect indirect taxes from taxpayers.

As a result, it receives contributions from people who are ordinarily exempt from paying direct taxes. The Goods and Services Tax (GST), which combines many indirect taxes that existed before 2017, is one of the most important indirect taxes.

Organizing company data throughout the year.

Whether you run a small business or a large corporation, you must constantly be organized. To make your business GST-compliant, you must be well-organized throughout the year. This saves you time and money, as well as any potential anxiety. You must keep a separate file for taxes and ensure that income and expenses are accurately classified on a computer or ledger.

Keeping meticulous records of income and expenditures.

Keeping detailed records of sales and expenses on a daily/weekly basis will help the company avoid losing money. In this sense, the software aids enterprises and streamlines the operations involved.

Stop wasting time with Excel when it comes to data management.

Almost all work is optimized after software integration. It automates the way organizations keep records and eliminates the manual style of working. It interacts with Excel automatically and retrieves and uses data directly through forms.

Making arrangements for a checkpoint meeting.

It is critical to have crucial company data that explains key performance when registering for GST. If there is a gap in the data, you must fill it in. GST software sends out periodic alerts to help with this, which allows you to quickly set up a checkpoint meeting and have a better knowledge of your revenue statement.

Make tax planning a cornerstone of your financial strategy.

It should be important to have a separate plan in place for timely tax filing. In the spring, begin working on tax planning for the current year. Then, in the summer, double-check that the records are current. Work with your planners toward the end of the year to make sure you’re taking advantage of any tax-saving opportunities. GST billing software aids in the organization of all of the following requirements.

Always be prepared for any event that may arise in the course of your business.

If you have the greatest accounting firm that can efficiently handle your GST complications, filing your GST will be a breeze.

Which GST software in India is the best?

easiest, as GST Software for Business, has all of the features that make GST filing easier for firms. It’s linked to services that keep track of your finances and cash flow. It is appropriate for all types and sizes of businesses, and it even makes sense for those who aren’t tech knowledgeable. As a result, you can consider it India’s top accounting software.

Easy GST, the Best GST software for SMEs has the following features:

  • EasyGST offers GST invoice production as well as bespoke services.
  • Taxes are calculated automatically.
  • It makes data security easier.
  • Expenses can be divided into many categories using the software.
  • GST is in charge of keeping track of and managing taxes (SGST, CGST, and IGST).
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Why Your Business Needs Complete Gst Billing Software?

Goods and Service Tax (GST) is a great revolution for businesses in India. GST system converted the complex indirect tax framework of India into an easy, feasible, and integrated one. Before the advent of GST, the taxation process was a little tiresome but it is easy to file taxes with GST. 

In the long run, this new tax reform will overflow the Indian economy with positive effects. But the problem is filing GST taxes takes a little bit more time. Moreover, it is important for business owners to make sure that they enter 100% accurate details. Thus, it may take a little bit more time and effort but to make it easy, you can use the GST billing software.

The GST billing software for business automates the process and thus it is easier to file the taxes. GST’s unified tax format throughout India is an onerous task, especially when all Indians are not on board with the GST related processes. Some of the small and medium-sized businesses aren’t aware of the benefits that this billing software has.

You will see in this article will provide you with the important reasons why you need the best GST billing software even if you have a small business.

Mandatory fields a GST invoice should have

Companies generally issue a tax invoice to charge the tax and pass on the input tax credit. You can easily create it using the Easy GST website. You can easily file all your GST returns with one click, as you enter all your bills and invoices here. The website will automatically submit them to GST Server.

  • A GST Invoice must have the following mandatory fields:
  • Invoice number and date
  • Shipping and billing address
  • Customer name
  • Place of supply
  • Customer and taxpayer’s GSTIN (if registered)
  • Item details i.e. description, quantity (number), unit (meter, kg etc.), total value
  • HSN code/ SAC code
  • Item details i.e. description, quantity (number), unit (meter, kg etc.), total value

Ease of Filing Data and Simple Invoicing Methods

Most businesses use simple accounting software for all their requirements. Thus, this makes it harder for them to file the data and then integrate it. They have to merge that with the online government portal of GST. But with the help of GST tax software, it’s easier to migrate data from the software to the online portal.

GST invoicing is a little complex. Different goods have different HSN codes and tax percentages and you must enter the right codes as well as calculate the right tax percentage. Hence using  Free GST Software in India will make it easier to invoice various goods without any hassle.

Manage the Documents as well as Follow the Rules of GST

There are various documents in the business, from filing taxes to warning notices to refunds. All these documents have become digital since the emergence of GST and online documentation is mandatory. GST Tax Software will store your documents with ease & will classify them based on their types & store them in various folders.

There are various rules of GST according to the government. From various HSN codes to different tax slabs there are so many minute details to take care of. Also, small and medium-sized businesses aren’t always able to afford an accountant and often are in a terrible state. Easy GST website will make it easier to fill your GSTR 1,2 & 3 and also support your composition scheme.

Data Security and Customization Facility

Data security is the most important thing in recent times. No matter where you store the data, there is a high chance of breaching. But you can overcome this situation with free GST software in India. This software will take care of the security threats and thus they provide amazing security for the users.

You need not worry about the data that you have stored in the software, as it’s safe there. Also, investing in software like this will surely yield you so many benefits.

Cost-Effective and Time-Saving

It is important for you to keep track of your invoices if you are running a business. But the software will make things manageable and will help in keeping the track of all the invoices. It calculates the tax separately for each and every invoice. And thus the best GST billing software makes entire invoice processing is pretty simple and easy.

It solves all finance-related problems, from invoicing to tax filing easy and a lot of your time will be saved.

Artificial Intelligence Will Make Everything Easier

A business entity of one state files thirty-seven tax returns in one single year. Although GST vanished the indirect taxation system, the entire GST taxation system itself is complex. It takes some time as well as effort to adapt to the system. If your company has branches pan India then your company should file a total of 1073 tax returns in a single financial year.

It is definitely not an easy process. So, the artificial intelligence of GST compliant billing software comes as a saviour here. And makes it easy for your businesses to file taxes.

Customization

The customization feature of the GST billing software adds eggs to one’s beer. The software can be customized as per the demands and needs of your business. The artificially intelligent GST software is capable enough to address various types of tax penalties. Another advantage of this software is that it is highly flexible and can easily combine with various other software as well.

Key features to look for in a GST billing software for business

Here are some important features or details you should look for in the software that would ultimately benefit your business units.

  • A security feature that will protect confidential business information and that is robust in both tax filing and data security features.
  • Invoicing, Accounting and GSTN validator.
  • User-Friendly interface with step by step process explained that allows to navigate back and forth (excel-like interface).

You must invest in GST compliant software, as it is always a profitable deal. It will make your process simple, quick and more productive.

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Benefits of having a Registered GST number and honestly paying for it

GST Registration

If you do any kind of business you must know about GST, but those who do not know about GST let us briefly explain it to you. A GST or The Goods and Service Tax is a single or indirect tax which is charged on the supply of all kind of goods and services be it the hotel or restaurant services, or the airplane services, shopping services, the factories, and many others, you can name any of the business where some kind of goods and services are provided the GST would be charged.

GST may sound little or complicated term but it is a very simple, comprehended and multi-stage tax which is charged on every value added to the goods. The GST came into force on 1st July 2017 and it took 17 years for the govt to make this force in the present economy. There are a lot of benefits who have registered for GST, those who have already registered for GST would know about its benefits, but those who do not know here are some of them:

Limited Tax Payment:

When you become a registered GST number holder the first and foremost benefit you have that the rate you pay for the taxes is minimal like you are a goods trader then you pay including the state GST and central GST is 1%, if you are restaurant owner then you pay for both GST is 5% and if you are other service providers is 6%.

New GST Rate 2019

Simple procedures:

The whole GST process which includes the registration for GST, filling a return for it and paying is now online, hence it has now become convenient for everyone especially for the one who has a new business or have a start-up since they have to do multiple procedures for getting other registration such as VAT registration, excise and service tax and etc.

Lower tax rates for small business owners:

Due to the earlier tax rates and the vat rates, the small business owners had to pay a lot of money in the name of taxes and they do not get much of profit from it too. But with GST, the small business owners get lower tax rates under the Compositions scheme whose business turnover is 20 to 75 lakhs. This is a relief for all the small business owners or the one who are new business owners as they can now save money and concentrate more on their business rather compiling documents for tax payments.

The unorganized sector now is regulated:

Certain industries like textile and construction companies were largely unorganized, they even did a lot of tax thefts since nothing was organized before the GST came. But now in GST, every payment has to done online and they can only avail the credit when the supplier has accepted the amount. So, now the tax theft is really impossible and one has to mention everything about their property or business while filling for GST.

improved logistic status:

Due to the application of GST, now the commercial owners do not have to pay extra cost during the delivery since now they do not have put extra warehouses in every city to cut the cost of current CST and the state entry taxes. Instead of setting warehouses in every city they can now set-up the warehouses at the strategic location which very much cost-effective for sellers. This has increased convenience for both the seller and the consumer which has cheapened the rates too.

Better treatment for online companies:

We love online shopping aren’t we because we have a lot of benefits from it but do you know how difficult it was to set up and deliver products to our over convenience for the E-commerce companies like Flipkart or Amazon? Yes, before GST, all the e-commerce companies had to register their VAT number differently for different cities plus they have to mention their vehicles numbers and license numbers and even stopped by the authorities if they do not have proper papers. With Gst, all the confusing process and the extra tax payments are removed and the rules are made which is done for all over the country, now there is no problem for the transportation of goods from one place to another.

Doesn’t matter if you own a small business or just have started your start-up or business everyone has a right to save some money, sometimes the amount or the burden of taxes become too much that it starts affecting the amount or the profit for the business. With GST, most of the extra cost is canceled since now you have to pay at one place rather than paying for different other taxes. So, now you can concentrate on how you can make your business big since you have all the govt support.

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GST Composition Scheme Explained For SMEs in India

GST Composition Scheme

The Goods and Services Tax (GST) is one of India’s most comprehensive and widely discussed economic policies in recent years. Unlike demonetization which largely drew the ire of various sections in society, media, and academia, the GST has prompted a mixed set of critiques. Although the allure of a comprehensive single taxation system, spanning the wider regional disparities of the nation is attractive, the intricacies of its implementation can tilt outcomes in one way or the other. The effects of the GST system are also different for different categories of businesses and individuals, with larger ventures usually possessing the necessary resources and expertise to navigate this complex accounting labyrinth. What, therefore, is the way out for small or medium-scale businesses which often do not have extensive resources at their disposal? The GST Council has recently announced the composition scheme which allows for a special tax-payment provision for certain eligible businesses. SMEs with an annual turnover of below 1 crore (and 75 lakh in particular states such as the North East) have the option of paying tax at a minimum favorable rate, ensuring better tax compliance and a smoother compliance process.

This GST composition scheme has certain fixed eligibility criteria. Besides the stipulation related to annual turnover rate, the SME concerned must be a supply business and operate intra-state only. Service providers are not eligible, with the exception of restaurant owners. Furthermore, at any point in the year, if the turnover rate exceeds the stipulated amount, the business will no longer be eligible to file GST under this particular scheme. The business must also not be associated with any electronic commerce operator such as Amazon or Flipkart. Multiple business verticals associated with the same PAN are considered under the same composition scheme and the businesses are not allowed to extract the composition tax from the customer or charge Input Credit Tax. The applicable rates (as a percentage of turnovers) are 1% for traders and manufacturers, 5% for restaurants, and 6% for other service providers. In order to be eligible, the business must indicate the same on the GST portal before the beginning of the fiscal year. This process involves filing a GST Form 02 at the time of registration and filing the GSTR 4 by the 18th the month falling after the quarter for which GST is being paid. A delay in the filing of GSTR 4 will attract a fine of Rs. 50 per day (Rs. 20 in the case of nil returns). For taxpayers under the composition scheme, GSTR Form 9(A) is the required form for filing tax returns. This must be filled by 31 December of the following financial year, failing which a fine of Rs. 200 per day (Rs. 100 for nil returns) will be charged. The composition scheme, to be started from the 2019 fiscal year carries a number of benefits for eligible businesses. Not only does it make the process of tax compliance easier, it significantly reduces compliance costs for small businesses which are the most severely impacted by minor changes in the economic landscape.

The MSME (Micro, Small, and Medium Enterprises) sector is one of the most prolific and vibrant in the country today. Data from the National Sample Survey Office (NSSO) estimates that in 2015-16, there were over 63 million MSM Enterprises. These created an estimated 110 million jobs and contributed a staggering 29% of the Gross Domestic Product (GDP). The MSME sector is also particularly important as India progressively moves towards an urbanized and technologically connected future. Data from the Census of 2011 tells us that 31% of India’s population is urban and both Census and NSSO estimates present a picture of rapidly growing rural to urban migration in recent decades. The post-1991 liberalization years have been the main driver of this kind of growth and it can be expected that India’s urban population will skyrocket in the coming years. The role of MSM Enterprises in this kind of economic growth and development is massive in terms of contribution to GDP, productivity growth, employment generation, and related outcomes such as social sector inclusivity and income mobility. Therefore, the particular attention paid to the composition scheme is a much-needed acknowledgment of the importance and contribution of the MSME sector to the economy as a whole.

However, despite positive steps in the right direction, there are some hurdles that continue to prevent effective inclusion for the MSME sector. Despite the staggering numbers presented in Census and NSSO data, the conditions for inclusion are so steep that as of 2018, 1,765,684 enterprises had registered under the composition scheme. Although the recent adjustment of the 1 crore turnover condition to 1.5 crores is expected to increase this number substantially, a large number of MSME ventures will continue to be excluded on the grounds of additional conditions involving the inter-state supply of goods and sale on e-commerce platforms. The composition scheme, although a vital economic tool for streamlined and higher growth in the MSME sector, must be adjusted in the coming years to make it more inclusive for the MSME sector, as a whole.

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32nd GST Council Meeting – All updates and important decisions taken

32nd GST Council Meeting

The GST Council meeting was held on 10th January 2019 in New Delhi to bring some benefits to medium and small-scale enterprises (MSMEs) with regards to GST exemption and permitted 6 % composition scheme for the services sector.

Addressing a press conference after the 32nd GST Council meet, Finance Minister Arun Jaitley declared that the services sector will now be eligible for benefits under the composition scheme, which was only applicable to manufacturers and traders earlier.

In the meeting, GST council has broadly taken below mentioned decisions –

The limit for the suppliers of goods i.e. Rs. 40 lakhs and Rs. 20 lakhs for exemption from registration and payment of GST. States would be given an option to decide about one of the limits within a weeks’ time. However, the threshold for registration for service providers would continue to be Rs 20 lakhs and in the case of Special category States Rs 10 lakh.

A composition scheme will be made available for suppliers of services with a tax rate of 6% (3% CGST + 3% SGST) whose annual turnover in preceding financial year up to Rs 50 lakhs. The said scheme shall also be applicable to both service providers as well as suppliers of goods and services, who are not eligible for the presently available composition scheme for goods.

The limit of annual turnover in the preceding financial year for availing composition scheme for goods will be increased to Rs 1.5 crore. Special category States will have to decide within one week about the composition limit in their respective States.

Those who come under the composition scheme or want to avail it will have to pay tax on a quarterly basis as only one return has to be filed during a year.

Meanwhile, the Council is yet to take a call on the real estate sector. Jaitley said that a 7-member GoM has been constituted to discuss ways to tackle issues in the ailing sector.

GST Council also approved the levy of cess on the inter-State supply of goods and services within the State of Kerala at a rate not exceeding 1% for a period not exceeding 2 years.

Similarly, if any state faces a natural disaster may approach the GST Council to demand a similar solution.

When asked whether there will be further rationalization of GST slabs or tax rates, Jaitley said further rate cuts can be discussed only when there is a rise in revenue collection.

Taxpayers under composition scheme will now need to file one annual return but payment of taxes would remain quarterly (along with a simple declaration)

Following matters were referred by the Group of Ministers

  • Proposal for giving a composition scheme to boost the residential segment of the real estate sector.
  • GST rate structure on lotteries.

All the changes made by CGST (Amendment) Act,2018, IGST (Amendment) Act, 2018, UTGST (Amendment) Act, 2018 and GST (Compensation to States) Amendment Act, 2018 along with amendments in CGST Rules, Circulars and notifications issued earlier and the corresponding changes in SGST Acts would be alert w.e.f. 01.02.2019.

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A Guide to GST Registration

With the Goods and Services Tax (GST) becoming a reality on July 1, 2017, it is important to understand who needs to register for GST, how to register your business for GST, and what you need for business registration under GST regime.

How to register existing taxpayers for GST

A business with service tax or any VAT registration can register themselves on GST Portal

Registration requirements

  • Provisional id received from authority
  • PAN of the tax payer/business
  • Mobile number
  • Email id
  • Bank account details

Majority of the VAT businesses have been migrated to GST, while only 43% of service tax businesses and have been migrated to GST as on April 2017.

How to register for GST if you are new taxpayer

Eligibility criteria

Your business must have a turnover of Rs. 20 lakhs or more. However if the business is located in any of the seven Northeastern States, then your business turnover limit is Rs. 10 lakhs

Who has to register for GST?

  • A person who is doing business in trading of goods or services has to register for GST if his annual turnover exceeds Rs. 20 lakhs or more, or Rs. 10 lakhs for businesses in any state of North-East India.
  • A person who is liable to be registered shall apply for registration in every such State, or Union Territory in which he is so liable, within 30 days from the date on which he becomes liable to registered.
  • A person having multiple business verticals in a State may obtain a separate registration for each business vertical.
  • A person may get himself registered voluntarily, and all provisions of this GST Act, as are applicable to a registered taxable person, shall apply to such person.
  • A person shall have a Permanent Account Number (PAN) or a Tax Deduction and Collection Account Number (TAN) in order to be eligible for grant of registration. Exception is for non-resident taxable person.

Online GST Registration Procedure:

Registrations for GST can be done online through a portal (www.gst.gov.in) maintained by the Central Government or State Government. The applicant will have to submit an online application for GST registration using Form GST-1 along with detail of the good and services to be dealt. Online payment for the registration fee would be made available and temporary GST registration number would be provided on submission of application. On submission of the application, the applicant would have to print a copy of the application, attach the documents mentioned above and courier the same to the GST department. On verification of the application, final GST certificate will be issued by the concerned officer. GST registration procedure is expected to be a completely online process, similar to the service tax registration process. GST Payment Knowledge

It’s a simple, streamlined process to follow. Your taxes will be simplified to a large extent and your business will experience the easy flow of goods across state lines. The GST is an important step towards good governance and you do not have to worry about be taxed multiple times. It’s time to get started with your GST registration.