Since the implementation of GST in July 2017, the Indian taxation system has witnessed a paradigm shift in the way taxpayers file the taxes.
As against the manual interference before, we are seeing an electronic way of managing with the compliances. However, the electronic mechanism has also paved the way for technical glitches due to which taxpayers and lawmakers have faced challenges.
Also, under GST, the data in each return has been interlinked to a corresponding data in another return which makes “reconciliation” a vital process. Not only this, the taxpayers issue a high volume of invoices every month, which makes data filing next to impossible.
What’s the answer to all these challenges and additional compliances? – Automation of tasks .
Manual intervention leads to errors and mistakes resulting in financial and legal penalties. However, an effective GST software reduces the manual interference and automates the retrieval, filling and reconciliation process.
Can automation improve the overall GST filing experience? – Let’s find out below -
- Reduction in redundant activities: Running your business is time-consuming and can be pretty expensive if time is lost in mechanical tasks like figuring out the HSN or the applicable tax rate for a certain product or service or calculating the input tax credit.
Adopting a GST software can eliminate these menial tasks and free up time which can be invested elsewhere.
- Data Retrieving and Reconciliation: If you’re one of those who use stand-alone accounting software to manage your finances, you would have to integrate a GST software with your accounting software.
The integrated GST software would then fetch invoices and other data making it easier to file timely and accurate returns. Moreover, under GST, data reconciliation and matching have gained significance.
The tax department matches the tax returns against the taxpayers’ books of accounts. Also, the GST returns and Income Tax returns are checked against each other. Plus, input tax credit depends on accurate data reconciliation.
Hence, taxpayers must reconcile their data on a regular basis to avoid mismatches and scrutiny notices. Automated data reconciliation can help save you time and headaches.
- Keeping up with due dates: When GST was introduced, the due date for filing GST returns looked quite intimidating – monthly and/or quarterly returns depending on the type of GST registration.
Owing to confusion, taxpayers missed out on these deadlines or ended up filing the incorrect returns. Since then, the GST Council has revised and relaxed the number of returns as well as the due dates.
To ensure a better transition, the CBIC revises and notifies extended due dates from time to time. Employing tax automation will help you keep a track of the tax filing due dates. Certain GST software applications even allow you to set reminders.
Also, during 11th – 20th of every month, when GST portal is jampacked due to return filing, efficient software can handle most things on its own so that you don’t miss on the due dates and suffer any penalties.
- E-way Bills: E-way Bill is the GST Council’s anti-tax evasion tool that would also increase transparency and improve logistics efficiency. Every time an e-way bill is generated, the government is notified of goods movement and officials can inspect the shipment anywhere along the route.
Since inspecting officers can stop a truck anytime, shipments without e-way bills will simply be seized. You also have to update your ERP software in order to sort invoices that identify the ones that qualify for E-way bills.
A good GST software will allow you to auto-generate e-way bills by fetching details from the invoices.
- Consequences of non-compliance: The GST councilmen have made stringent provisions for tax evaders and non-compliance. People found guilty of non-compliance or tax evasion may face hefty fines or even imprisonment.
Having GST software in place can help you avoid accidental non-compliance or tax evasion.
Many questions, One Answer - SahiGST
SahiGST is a GST compliant software, built to make the compliances look simpler and time-efficient. Rather than automating every task which can make the process complex for the users, it automates the key processes, while keeping other tasks manual.
Apart from meeting the expectations mentioned in the points above, here’s how other prominent features of SahiGST make GST compliance smooth as a cakewalk –
Cloud Platform – SahiGST isn’t required to be installed on local desktops and PCs. It is set up on a cloud platform which allows your teams to work together simultaneously.
Role defined user access – SahiGST has inbuilt ability to allot maker, checker and approver roles to various users according to the organisation’s authority matrix, which keeps the accountability intact.
Activity Monitor – To build accountability, it is crucial to keep an activity log that can record the actions done by every user. SahiGST has an in-built activity log that also provides a base for audit trails.
Security – Confidentiality and security of data are utmost important to us because it helps you get a competitive edge in the industry you are operating in. While transferring data between the platforms and processes, SahiGST uses the most secure encryption system to avoid any leakage or misuse.
Robust Reconciliation Process – Correct data filing is the most critical task in the GST regime since it paves a way for seamless flow of input tax credit and reduction of notices. Several reconciliations have been integrated into SahiGST software to cross-examine accounting books with GST returns in real-time. Also, the system reconciles the GST returns data with each other to avoid any mismatches.
Especially for startups and medium-sized companies that focus on critical decision making, SahiGST provides multiple reports in a few clicks. Visit www.sahigst.com today to open your free trial account!