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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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Quick Look of New GST Returns Update and Clarification

In order to simplify the compliance procedure further for GST-registered businesses, the 31st GST Council meeting proposed a new return system. It was absolute that a New Return System under GST would be introduced for taxpayers. This system is likely to be introduced on October 1st, 2020. This return will need to be filed on a monthly basis.

The Goods and Services Tax (GST), was introduced as a single, straightforward tax system to replace multiple indirect taxes.

Under the new system, there will be three main return forms – Normal (RET-1), Sahaj (RET-2) and Sugam (RET-3). The type of return to be filed and the filing frequency is determined based on the turnover of a business.

Annexures of Main Returns

All three return forms will have two annexures GST ANX-1 & GST ANX-2.

GST ANX-1 is used for reporting outward supplies, inward supplies that are subject to reverse charge, and imports of goods and services. The merchant can upload related documents on a real-time basis in GST ANX-1.

GST ANX-2 will have details related to all the inward deliveries received from a registered supplier including imports and supplies received from an SEZ unit. Some of the details uploaded by the supplier in ANX-1 will be automatically available for the recipients in ANX-2 to verify and accept, reject or keep it pending.

Important changes introduced in the new GST return system

These are some of the changes introduced in the new return system-

  • HSN code will be needed in order to submit details at a document level vs. a separate HSN summary.
  • A user will also get HSN code to his GST ANX-2, wherever a supplier was supposed to declare the HSN code.
  • B2B supplies, liable to reverse charge mechanism need not be shown by the supplier in the GST ANX-1, however, the total figure will need to be shown in GST RET-1.
  • Inward supplies which are accountable to RCM has to be declared in GST ANX-1 at the GSTIN level, by the recipient of supplies.
  • The concept of B2C-L has been removed. The turnover limit for quarterly filers will be considered as Rs 5 crore of the present limit of Rs 1.5 crore.

Current System vs New Return System

Turnover limit for small business: Rs 1.5 crore for the previous financial year under current GST returns and Rs 5 crore under new GST returns.

Number of returns: Under the new system, there is a single return form (Normal/Sahaj/Sugam), containing two annexures.

Reporting of missing invoices: Missing invoices were reported using GSTR-3B in the current system. Missed invoices will be reported using RET-1 in the new system.

Reporting imports: In the current returns, ITC on imports was separately reported in GSTR-3B. However, ITC reports will be detailed under GST ANX-1 in the new returns system.

Need for cloud accounting

The new GST return has paved way for e-invoicing in India, where the taxpayers will now have to upload invoices in real-time. Since your accounting software will be connected with the government portal, it will allow you to retrieve invoices anytime to clarify the inconsistencies in your books.

With a new GST return system coming up, it is a good time for all businesses to switch to GST-compliant cloud accounting software. By adopting the Easy GST software and processes now, businesses can avoid penalties or other repercussions for non-compliance when the new return is implemented in October 2020.

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Latest News and Updates About GST You Must Know About

The government must issue refunds to companies for products and services tax paid on orders that consumers have canceled due to the national shutdown placed to contain the latest coronavirus outbreak, as requested. It will benefit businesses who would be forced to refund all payments made to them, including vat.

According to Rajat Mohan, a partner at AMRG & Associates, companies used to change the excess GST charged for other new bookings, but now they will be liable for a refund, which will be a big relief. Hospitality and tourism, leisure, culture, media, advertisement, and aviation are some of the sectors that have been most impacted due to COVID-19 and that stand to benefit.

Upon the emergence of the Coronavirus epidemic, the global economy is forced to take a big step back. The Government of India has taken concrete steps to resolve the citizens’ and company concerns. Union finance and corporate affairs minister Smt on 24 March 2020. Nirmala Sitharaman announced significant relief steps on enforcement issues relating to laws and regulations across various sectors. Such announcements have focused in particular on the fields of Income Tax, EPF, ESI, GST, Customs & Central Excise, Corporate Affairs, Insolvency & Bankruptcy Code (IBC), Fisheries, and Banking and Trade.

A recent Rajasthan GST Advance Ruling on Goods and Service Tax Liability on Company Managers’ Remuneration has come up for discussion. The reasoning in this decision sets out a legal theory that relies on company law in terms of a director’s roles and responsibilities. Such interdependence on tax law definition isn’t unusual. In this case, the conflict was over the essence of the remuneration received by the director of a company and its taxability under GST.

It is expedient to mention those aspects of the GST law before diverting into the conflict. There is an absolute legislative exclusion from GST of compensation that an employee gets for their services. There is also a particular clause, albeit not under the GST law as such, but under a subordinate notice, which specifies that on the reverse charge basis, the GST responsibility for the services rendered by a director is with the recipient organization. Under the Service Tax Act, a similar clause prevailed.

GST Filing complications due to nationwide Lockdown

Regardless of the lockout and COVID-19 impact, all organizations and businesses are following up on work from home. Yet the modern trend of operating from home brings with it a few obstacles for start-ups and even for bigger corporations too. One of the problems that corporations face is that workers responsible for filing tax and GST returns and producing e-way bills can not access their office systems.

The GST reporting process is complicated as it includes consolidating cost bills and transactions from different agencies, validating and entering into accounting systems, calculating the amount of tax due from sales, and more. And, it usually occurs in the last week of the month, which in the current situation makes it impossible for a lot of businesses to handle and file their returns.

Small companies that are unable to operate from home, and where taxpayers are required to be on the premises to comply, are likely to be affected. Some employees can work at the premises for a short period of time for smooth product movement and e-way bill generation.

There are several companies that help their customers stick seamlessly to cloud-based applications that can be accessed anytime, anywhere. When data is applied, the program can automatically produce reports and create reconciliations. These are unique situations, and we hope that the government will be able to resolve those issues.

Latest GST Updates

  • GST returns filing date is being extended to 30 June 2020 for March, April & May by the government.
  • According to the government, there is no Late Fee, No Penalty for the businesses with a turnover of less than Rs.5 crore.
  • The last date for opting for composition scheme extended to 30 June 2020.
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What You Must Know About GST API Integration?

Taxpayers can use any ASP / GSP facilities to do activities related to GST compliance, such as filing returns. To use the ASP / GSP services, taxpayers must require ASP / GSP access to APIs. This is an additional security feature that enables taxpayers to control access to the GST Portal’s API for their account. Taxpayers are allowed to choose ‘ No “to access the API at any time they want. This will limit the use of his / her credentials to access the GST portal by the ASP / GSP application. This is a security feature designed to avoid any unauthorized access to your information.

The India Goods and Service Tax (GST) API is a Restful API that provides services for all functionalities related to taxpayers. It covers resources such as Payment Information, Returns filing, Registration, Ledger Viewing, and more. Content is provided through the GST Developer portal to help application developers understand, use, and consume GST APIs in their applications.

GSTN (Goods and Service Tax Network), the company that handles GST’s technical portion, has released a range of APIs for developers to build applications and enable them to comply. Until we understand different APIs and how these APIs can be accessed, let’s understand the purpose for which APIs are provided.

Purpose of APIs and various usage

You can connect with a server as you know it through the API. Using these APIs, one can access GSTN servers and perform different functions.

Filing of returns

New software for filing GST returns can be introduced or built. GSTN offers APIs which you can use:

  • Save different GST Returns,
  • View different GST returns,
  • Check status of GST returns,
  • Create Challans and make tax payments,
  • And other functions

Business challenges of investing in GSTN APIs

We have outlined the available APIs and the purpose of these APIs in the heading above, and how you can use them in your application. But the use of these APIs poses many difficulties.

Challenges are both technical and monetary

Technical challenges are not very relevant, as these can be addressed through continuous monitoring of GSTN notifications for updates.

Technical challenges

  • There are still no functional GST structures and even tax rules. For example, one never knows when to discontinue a tax return. We have not started any facilities at Know your GST because of this. GST returns, such as GSTR-3B and GSTR-1, will be discontinued, with the introduction of new GST returns Sahaj and GST Sugam.
  • There numerous other challenges that can be easily handled by developers.
  • Response to and request from the GST APIs also varies. This is due to regular changes to GST rules.

How to get GST APIs

GSTN offers GSP (GST Suvidha Providers) access to the APIs, and GSP can also nominate ASP (Application Suvidha Provider).

So, to access GST APIs, you should either become an ASP or a GSP.

As of now, GSTN has stopped accepting new GSP registration, so there is only one option to become an ASP.

You can use our support if you are looking for a solution to check GST numbers and incorporate GST Verification APIs.

Benefits of using our APIs are:

  • We have a clever system and caching to deliver 80 percent results even if GST servers or GSP servers are down.
  • Signing up, generating API Key, and running your first request will take less than 2 minutes.
  • Cheap plans with unlimited API calls.
  • You can also compare response time, as we are known for providing the fastest response.
  • Support through WhatsApp and documentation.
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If your e-Way bill generation is blocked due to tax defaults-here’s what you must do

The government has implemented the blocking of the e-way bill generation facility with effect from December 2, 2019, to curb tax evasion and non-filing of GST returns. Taxpayers who for the previous two or more consecutive tax periods have not submitted their returns are barred from generating the e-way bill.

What is the reason for the blocking of e-way bill generation?

There are about 20.75 Lakh GSTINs, according to the GSTN data, that have not filed GSTR-3B for September and October. In addition, out of the maximum of 20.75 Lakh GSTINs, approximately 3.47 Lakh GSTINs had transactions in the e-way bill portal for September and October 2019. The tax authorities find the non-filing of returns to be a primary reason for the decreasing collection of GST revenue. For taxpayers who did not submit their Form GSTR-3B return for two consecutive months, therefore, the ability to generate e-way bills had to be blocked.

How will the blocking of e-way bill generation work?

GSTR-3B is a return form containing a summary of the outward and inward supply details and the final tax payable after the input tax credit has been claimed. Each GST-registered taxpayer should file it on a monthly basis.

Under the new e-way bill generation facility blocking rule, a taxpayer who fails to file GSTR-3B return on the GST portal for two or more consecutive months will be prevented from generating an e-way bill. A blocked GSTIN can not be used as a supplier, recipient or transporter to generate an e-way bill. For e.g., if a taxpayer for September and October 2019 did not file GSTR-3B, his / her e-way bill generation facility would be blocked from December 2nd 2019.

In the case of blocked GSTINs, facilities, like updating the vehicle and transporter details or extending the validity of these e-way bills, will not be affected for e-way bills that are already created.

How to get your e-way bill generation facility unblocked?

If a taxpayer files his / her pending GSTR-3B for the default period(s), the e-way bill generation facility would be automatically unblocked, reducing the default period to less than two consecutive tax periods. On the next day, the block will be lifted automatically on the e-way bill portal.

The taxpayer can visit the e-way bill portal for immediate status updates and select the ‘ Search Update Block Status ‘ option, enter the GSTIN and then click ‘ GO. ‘ Click on the ‘ Update Unblock Status from GST Common Portal ‘ option if the status reflects as ‘ blocked. ‘ This will get the most recent filing status from the GST portal, and the e-way bill status will be updated as ‘ unblocked ‘ if the pending returns are filed.

Not providing an e-way bill while the goods are being shipped will lead to an interruption in a business ‘ daily operations and deliveries. This move would enable taxpayers to be more compliant and ensure that they make their returns/tax payments on time. By ensuring that their GSTR-3B is filed within the deadline, businesses need to be more careful so that their business-related operations do not disrupt. This new development can help to improve the collection of GST revenue within the e-way bill system.

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Everything You Must Know About E-Invoice System under New GST Return and Benefits

On September 29, 2019, the GST Council approved the introduction of ‘ e-invoicing ‘ or ‘ electronic invoicing ‘ to report business-to-business (B2B) transactions to the GST system. From January 1, 2020, the new system will be introduced. Previously, there was no generic e-invoice model in India, but the latest GST return set a standard to meet the business needs of traders and industrial entities. E-invoicing is the submission on a common portal of a standard invoice that has already been produced. Thus, multi-purpose reporting is automated with a one-time input of invoice details.

What is E-Invoice?

If an invoice on the computer or Point of Sales (PoS) machine is generated by software, then does it become an e-invoice? Is e-invoice as a system that allows taxpayers to generate invoices centrally? When discussing e-invoice, many such questions are raised.E-invoice does not mean generating invoices from a tax department’s central portal, as any such centralization will result in unnecessary restrictions on the way in which trade is carried out. In fact, taxpayers have different requirements and expectations that cannot be met through one software that generates e-invoices from a portal for the entire country. Invoice generated by each software may look more or less the same, but another computer system cannot understand it even though business users fully understand it.

The key objective behind the E-Invoice System

The intention behind the e-invoicing problem is to reduce manual data entry errors. Since the machine regulates the e-invoicing system, the e-invoices of sellers, banks, agents, or anyone else involved in trading will be analyzed and read. As part of the Return, the e-invoice will also provide details to the GST system in addition to a seamless record of transactions.

Benefits of E-Invoicing

  • Invoice addresses and fills a significant gap in GST information reconciliation to minimize misalignment.
  • E-invoice resolves and mends a flaw in the GST data reconciliation process in order to reduce flaws.
  • Another software can read e-invoices created on one software, allowing interoperability and helping to reduce errors in data entry.
  • E-invoice addresses and mends a flaw in the GST information reconciliation process in order to reduce flaws.
  • Get real-time invoice tracking generated by the various suppliers with e-invoice.
  • As tax authorities receive all the necessary transaction-level information via e-invoices, audits/surveys must not be deterred.
  • Any program will read the e-invoices that were generated on one application, thereby allowing interoperability.
  • E-Invoice cannot be partially canceled; it has to be fully canceled.
  • E-Invoice has the option of canceling the invoice within 24 hours of IRP registration. Any cancellation after 24 hours could not be made via IRN; before filing the return, taxpayers must manually cancel the same on GST Portal.

The e-invoice mechanism is expected to be implemented on a voluntary basis in stages from 1 January 2020. It will be phased enforced.

How will E-invoicing curb tax evasion?

It will help in curbing tax evasion in the following ways:

  • Tax authorities will have access to transactions as they occur in real-time as the e-invoice must be generated compulsorily through the GST portal.
  • There will be less room for invoice manipulation as the invoice is created before a transaction is performed.
  • It will reduce the chances of fake GST invoices, and it is possible to claim the only genuine input tax credit as all invoices need to be created through the GST portal.
  • Since the input credit can suit output tax data, monitoring fake tax credit claims becomes easier for GSTN.
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Top Accounting Trends 2019 You Must Know About

Easy GST - Best Cloud Accounting Software Online

The technology has been influencing every sector of the economy and society. With the advancement in technology, new ways have been discovered to handle things. The accounting sector has also seen an upsurging change in the methods of accounting trying to increase the overall efficiency and the standards.

The new age of accounting experts must grasp innovation and adjust to the accounting patterns that are disrupting the long-held prescribed procedures. The new accounting patterns would help accounting and tax assessment firms to achieve new degrees of progress along these lines empowering them to work in a lot quicker and more brilliant way.

These accounting patterns are examined thus beneath.

AUTOMATION

The labor-intensive tasks like audits, payroll and banking will be completely computerized – a pattern that is viewed as the best chance. Artificial intelligence will give a really improve access to a scope of close ongoing data from a more noteworthy number of sources. The artificial intelligence will not wipe out human intelligence, it is meant to facilitate human. Innovation will give us access to better information; however, accountants are the ones who’ll need to apply this data to this present reality to give urgent business bits of knowledge and insight.

Computers can’t supplant the interpretive limit of the human mind. It’s likewise really difficult to teach a machine good judgment. While calculations will keep on getting all the more dominant and productive at arranging enormous information, computers are just extraordinary transactional machines.

THE POWER OF CLOUD

Cloud accounting and software-as-a-service (SaaS) applications and the capacity to get to monetary information from internet empowered gadget have led to virtualization being the new standard.

The developing environment of uses that incorporates accounting platforms has likewise demonstrated to be proficient by interfacing and streamlining back-office forms for a wide scope of organizations and ventures.

The development of cloud computing is revolutionary in itself with accounting firms utilizing the intensity of cloud computing for the majority of their accounting needs. Increasingly accounting firms are utilizing programming and administrations that are put away on an immense system of remote servers rather than on PCs.

Most of driving cloud arrangements firms are putting forth upgraded security, quality control, and information recuperation choices as software-as-a-service (SaaS) applications empowering the accounting firms to get to money related information from any Internet-empowered gadgets.

OUTSOURCING

One of the greatest patterns in accounting is outsourcing fund and accounting administrations. Outsourcing accounting administrations can enable organizations to chop down expenses, and furthermore lessen the danger of misrepresentation and give access to the administrations of devoted experts in the field.

Outsourcing accounting above all empowers organizations to center around their essential business as opposed to building an accounting office. Furthermore, outsourcing offers a number of benefits like providing access to a group of specialists in accounting, access to top frameworks, sufficient opportunity to concentrate on development and extension of the business, unlimited authority over business accounts, etc.

COLLABORATIVE ACCOUNTING

Collaborative accounting is the eventual fate of accounting. It doesn’t really happen just among customers and CPAs, it applies to plenty of services which are accessible today. Thus it is not just in the software and technological advancements that accounting has seen a trend but also in the sphere of working in collaboration with the clients.

MILLENIAL CLIENT EXPERIENCE

Accountants will have to manage a simply new program of customers who incline toward more straightforwardness, liveliness, and a customized methodology as the coming decade is the time of the twenty to thirty-year-olds as entrepreneurs and bookkeepers should move past customary accounting techniques and methodologies. These customers request legitimate direction as well as anticipate that accounting firms should be paperless and innovation smart that is conceivable with the cloud switch.

DIY SOFTWARE

The accounting and assessment programming firms would dispatch different applications and arrangements as Quick Books Assistance in 2019 and would improve the customer interface, particularly for little and medium estimated ventures. One of the accounting patterns that will rule in 2019 is the acknowledgment of DIY programming by the accounting club for example, facilitated Quick Books programming, and other independently employed applications.

FIXED PRICING

With computerization getting to be ordinary, the idea of hourly charging will be a relic of past times and most business firms would change to a fixed evaluating model that would profit bookkeepers and customers as it would underscore the estimation of administrations being given by firms. For providing advisory services fixed evaluating model would be progressively favorable.

SOCIAL MEDIA STRATEGY

Utilizing social media for accounting is additionally picking up fame this year as entrepreneurs are ending up increasingly dynamic via web-based networking media. Most organizations utilize social media to make a presence for their business on the web and contact a more extensive group of spectators. This pattern in accounting isn’t only advantageous for accounting firms yet additionally for the customers who can accumulate data themselves, which gives clearness with regards to picking the services given by an accounting firm. There are numerous advantages of utilizing online life for accounting, they incorporate no expense on utilization, and they facilitate the expanded business presentation and permeability, expanded site traffic, giving knowledge in areas of accounting expertise, speaking with a large number of individuals.

PROACTIVE ACCOUNTING

Accounting capacity, for the most part, used to be responsive in nature, e.g., it records and records for exchanges that are past. This is evolving now. Because of numerous variables, for example, advancing plans of action, guidelines, expanding job of bookkeeping in settling on business choices the 2019 pattern is for the bookkeeping capacity to play an increasingly proactive job in understanding the potential ramifications of any critical business activity, including assessment sway. This enables organizations to run proficiently, without spending critical assets to fix accounting blunders or to comprehend and represent new business activities.

MOBILE ACCOUNTING

With the rise of cloud computing, and predominance and adequacy of electronic documentation instead of customary paper-based vouchers, solicitations or receipts, accountants are currently progressively increasingly becoming mobile. They can work remotely and there are right now many group sharing instruments to upgrade remote work.

 

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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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Top 10 GST Softwares In India You Should Know About

Top 10 GST Softwares In India You Should Know About - Best GST Software India - Cloud Accounting Software

In India, Which is one of the most diverse countries with a complicated infrastructure GST is the first technology driven tax regime. If you are looking for the best GST accounting software in India, then you have tended to the rig page, here we have jotted down the best GST ready software for small business and startups to tackle their GST confusion. Since the day of its Inception, GST has been an epidemic of confusion for the business owners in India. Moreover, after years debates, discussions, amendments the GST is the only tax regime that was implemented by the government, and every business needs to follow it.

Here we have handpicked top 10 GST software in India that can help you with the GST compliance and take care of billing & accounting.

1. EasyGST

Here is another flawless and great GST software available you can use for your business. The Software comes with all required options and features to keep your GST billing cycle running. Moreover, with the software you get additional features to manage your business accounting actions like advance invoicing, tracking cash flow, monitoring the tax credit. Due to its friendly user interface and plenty of accessible features, EasyGST is counted among the best GST software in India.

Best GST Software India - Top 10 GST Softwares In India You Should Know About - Cloud Accounting Software

2. Clear Tax

If you wish to secure your billing data and don’t trust thee adware storage then, Clear Tax is for you. It is a cloud-based GST accounting software with internet connectivity for the users. You can easily create GST based bills and carry out accounting operations offline, and the software will automatically sync your data with the cloud storage. The software is accessible via mobile, desktop or laptop which makes it is one of the best GST software in India.

3. Tally ERP 9

Tally ERP 9 is one of the most advanced GST software in India that caters all your billing an accounting needs. With the Tally’s GST software you can easily create GST invoices/bills for your customers with multiple items and multiple tax rates. Besides, Tally ERP 9 is much more than just GST invoice building software; it takes care of all the other billing and accounting actions. The software also takes care of the branch charges, reverse charge scenarios, advance receipts and export invoices.

4. Quickbooks

Quickbooks is quite popular in India and considered as one of the best GST software to handle your business account. The software comes with a user-friendly interface that everyone can understand and access easily. Creating and sharing GST invoices can be done effortlessly in the software, and it also allows you to monitor tax credit so you can save money for your business. The company has released an online GST ready version for the small business that is customized according to their billing needs in requirements. The flexible GST software not only helps the businesses to create GST invoices but enables to track cash flow, expenses, and not categorized their income or expenses with a dedicated feature.

5. MARG GST

MARG ERP 9+ is one of the best GST software you can use for your business at an affordable price. Besides, the user interface of the software is convenient for beginners. The software also allows the users to convert the bill into various formats and provides the option to send them via links. The email option adds a hassle-free way to share the bills with customers.

6. Busy Accounting Software

Whether you own a micros, small or medium business, Busy Accounting Software got it all. It is one of the best GST ready software for generating advance invoices and managing the business accounts. The user interface of the software is intuitive, and you can quickly generate invoices with customized options. Moreover, you can easily manage your accounts, finance, credits along with VAT and CST reports.

7. Zoho Books

It is another GST ready software in our list that you can integrate to your business for hassle-free invoice generation. The software lets you effortlessly generate GST invoices with different tax rates and multiple items quickly. Along with this, it is very convenient to keep track of all your account details including cash flow, and monthly expenses.

8. Reach GST

Reac GST is an ideal software of the SME’s to deal with their billing actions depending actions. The software comes with the functionality of multiple user-handling profiles for the business. You can generate GST invoices and can also share with them with the users via mail easily.

9. GEN -GST

If you are still in favor of offline GST ready software, the GEN-GST is specially designed for you and your business. The software allows users to prepare GST returns for consumers without accounting. Besides the software can also extract data from any software, the software works without any internet.

10. Sai GST

Sai GST may be listed last on this list, but it is not the least, the software is explicitly designed for CA and businesses who want to manage their GST returns. The accounting software works online and automatically synchronize all the bills and details between the suppliers and vendors.

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GST Rates 2019 – New GST Rates Applicable From January-2019

New GST Rates

GST is the principal tax-related reform in the country bringing equality in the taxation structure and eliminating the cascading of taxes that were levied in the past. The GST Council meets from time to time to revise the GST rates for various products. Several states and industries recommend reduction in GST tax rate for various items which are discussed in these meetings.

Finance Minister Arun Jaitley said that the government wanted to keep the GST rates close to the original rates. But there were differences in case of some items because of the changes in the economy as well as customer preferences. Some commodities were kept in the high tax bracket (18-28%) but on scrutinize the list, they found that these commodities should be considered as necessities and not luxuries. This is why the GST rates were revised for commodities such as notebooks, exercise books, spectacles and lenses and some other items.

GST Tax Rates on some common items

TAX Rates

Products

5%

 Household necessities such as edible oil, sugar, spices, tea, and coffee (except instant) are included. Coal, Mishti/Mithai (Indian Sweets) and Life-saving drugs are also covered under this GST slab

12%

 This includes computers and processed food

18%

 Hair oil, toothpaste and soaps, capital goods and industrial

intermediaries are covered in this slab

28%

 Luxury items such as small cars, consumer durables like AC and Refrigerators, premium cars, cigarettes and aerated drinks, High-end motorcycles are included here.

GST Rates on Goods

The government has proposed a 4-tier tax structure for all goods and services under the slabs- 5%, 12%, 18% and 28%. After the recent revision of GST rates, these are the commodities that fall under the four tax slabs along with those that do not attract any tax. Please note that only those commodities are included in this list whose rates have been revised in various council meetings.

Let us have a look at various products and the tax slab in which they fall into :

List of Goods and Services under 0% GST Rate (No tax)

With the implementation of GST, there will be no tax for the following goods as well as services throughout India.

Goods:-

Unpacked foodgrains, fresh vegetables and fruits, unbranded atta, maida, besan, gur, milk, eggs, curd, lassi, unpacked paneer, unbranded natural honey, palmyra jaggery, all types of salt, fresh meat, fish, chicken, buttermilk, cereal grains hulled, Jute, flour, bread, prasad, bindi, sindoor, stamps, judicial papers, printed books, newspapers, bangles, handloom, Bones and horn cores, bone grist, bone meal, etc;, hoof meal, Kajal, Children’s’ picture, drawing or colouring books, Human hair.

Services:-

Under GST, all hotels and lodges in India with tariff below Rs.1,000 are exempted from paying taxes.

Rough precious and semi-precious stones will be taxed at 0.25% all over India.

gst-0percent-tax-rate

List of Goods and Services under 5% GST Rate:

Goods:-

Apparel below Rs 1000, footwear below Rs 500, Sugar, tea, roasted coffee beans, edible oils, cream, skimmed milk powder, fish fillet, branded paneer, frozen vegetables, coffee, spices, pizza bread, rusk, sabudana, kerosene, coal, medicines, stent, lifeboats, Cashew nut, Cashew nut in shell, Raisin, Ice and snow, Biogas, Insulin, Agarbatti, Kites, Postage or revenue stamps, stamp-postmarks, first-day covers.

Services:-

Transport services (Railways, air transport), small restaurants.

gst-5percent-tax-rate

List of Goods and Services under 12% GST Rate:

Goods:-

Cell phones, Apparel above Rs 1000, sewing machine, umbrella, Ayurvedic medicines, tooth powder, Butter, ghee, almonds, fruit juice, packed coconut water, preparations of vegetables, fruits, nuts or other parts of plants including pickle, murabba, chutney, jam, jelly, bhujia, namkeen, fruit juices, frozen meat products, dry fruits in packaged form, animal fat and sausage, cheese, colouring books, picture books, Ketchup & Sauces, All diagnostic kits and reagents, Exercise books and notebooks, Spoons, forks, ladles, skimmers, cake servers, fish knives, tongs, Spectacles, corrective, Playing cards, chess board, carom board and other board games like ludo.

Services:-

Non-AC hotels, business class air ticket, State-run lotteries, fertilisers, Work Contracts.

gst-12percent-tax-rate

List of Goods and Services under 18% GST Rate:

Goods:-

Footwear above Rs.500, camera, speakers and monitors, Headgear and parts thereof, Trademarks, goodwill, software, Bidi Patta, Biscuits – All categories, flavoured refined sugar, pasta, cornflakes, pastries and cakes, preserved vegetables, jams, sauces, soups, ice cream, instant food mixes, mineral water, tissues, envelopes, tampons, notebooks, steel products, printed circuits, Kajal pencil sticks, Aluminium foil, Weighing Machinery [other than electric or electronic weighing machine]. Printers [other than multifunction printers], Electrical Transformer, CCTV, Optical Fiber, Bamboo furniture, Swimming pools and paddling pools, Curry paste; mayonnaise and salad dressings; mixed condiments and mixed seasonings.

Services:-

AC hotels that serve liquor, telecom services, IT services, branded garments and financial services, Room tariffs between Rs. 2,500 and Rs. 7,500, Restaurants inside five-star hotels.

gst-18percent-tax-rate

List of Goods and Services under 28% GST Rate:

Goods:-

Automobiles, Motorcycles, ATM, washing machine, shavers, hair clippers, Bidis, chewing gum, molasses, chocolate not containing cocoa, waffles and wafers coated with chocolate, pan masala, aerated water, paint, deodorants, shaving creams, after shave, hair shampoo, dye, sunscreen, wallpaper, ceramic tiles, water heater, dishwasher, weighing machine, vending machines, vacuum cleaner, aircraft for personal use.

Services:-

Cinema, 5-star hotels, Private-run lotteries authorised by the states, hotels with room tariffs above Rs 7,500, race club betting.

gst-28percent-tax-rate

GST Rates on Services

The government has also impose GST on Services with the same 4-tier tax structure as of goods. GST rates on services comprising of 5%, 12%, 18% and 28% come with various pros and cons for the consumers. However, the government has exempted healthcare and educational services from the purview of the GST.

The Goods and Services Tax council has passed the rate slabs at NIL, 5%, 12%, 18%, 28%. Some of the services categorized under different slabs are mentioned below :

GST on Cars

Subsequent to bringing cars under the GST regime, the GST rate on cars has been fixed at 28% for all personal use vehicles featuring a petrol or diesel driven engine. However, in addition to GST, a composition cess is also applicable to cars over and above the GST Rate. Thus the overall tax rate applicable to vehicles under GST ranges from 29% to 50%. Lower rates of taxation are however applicable to cars driven by cleaner technologies such as fuel cells (including hydrogen fuel cell) and electric vehicles.

GST on Gold

Subsequent to the introduction of GST on items made from gold such as gold jewellery, the current GST rate on gold is 3%. However, a 5% GST rate is applicable to making charges applied to gold jewellery in case the manufacturing is outsourced to a job worker. This can, however, be charged as an input tax credit (ITC) by the jeweller and only a 3% GST charge is applied to the final bill paid by the purchaser of gold jewellery items.

GST On Real Estate

GST is applicable to real estate purchases only if you are purchasing an under construction property. The GST rate applicable to such transactions is 12%. No GST is applicable in case you are purchasing a ready to move in property. Additionally, different GST rates are applicable to various building materials used in the construction of houses/flats. This can range from 5% (sand, marble rubble, etc.) to 28% (cement, etc.).

GST on Food

Food items especially fresh food mostly carry a Nil GST rate. However, packaged foodstuff and semi-processed/processed foods do feature GST rates starting from 5% up to 18%. While no foodstuff are currently included in the highest 28% GST bracket, the 18% rate of GST is applicable to some common food products such as chocolates as well as baked goods such as cakes.

Upcoming products in GST Rates Slab

The Government is going on with some new tactics to bring in some of the products under the GST system. As hinted by Finance Minister, Arun Jaitley, there could be an inclusion of products under GST with the reduction of GST rates on some products. Major products which can come under GST rates slab includes:

1) Petroleum products- Petrol and Diesel

2) Land

3) Electricity

4) Others

GST Rates Impact on the Economy

GST has transformed the economy at its peak. It’s a game-changing reform for the Indian economy as it brings about net appropriate price for the goods and services considered under a single taxation system. Mentioned below are some of the important GST rates impacts in the Indian economy :

Increase in Competition: After the GST has been imposed, there has been seen a fall in prices of goods and services which ultimately has brought the final consumer to have less tax burden on the goods and services. There is seen a great scope of increased production, thus, increase in competition.

Simple Tax Structure: GST has simplified the calculation of tax with the adoption of a single taxation system. Under this, multiple taxations have been aborted which ultimately saves time and money.

Uniform Tax Regime: Previously, there used to be multiple taxes at every stage of the supply chain, where the taxpayer got confused. But now, with GST, it is easier for the taxpayer to pay a uniform tax.

Increase in Exports: There has been seen a fall in the cost of production after the GST got imposed. This in return has brought competitiveness towards the international market resulting in rising in exports.