GST has been evolving ever since it was introduced in July 2017. The journey hasn’t been smooth as expected given the numerous updates in provisions of law, return formats and the process. Initially, the focus of everyone in the ecosystem right from taxpayers to solution providers and also the Government was to see returns are filed consistently and correctly. Now that GST returns have become a stable process, the focus is now shifting.
Here’s what the following groups expect…
- Taxpayers – want to make the reporting efficient and explore indirect benefits and use cases.
- Government – closing the gaps and fraud reporting, enabling automated and digital litigation management
- Fintechs/bankers – new entrants in the space, figuring out innovative ways of using GST data
6 Tasks a GST Software can do to Simplify your Compliance beyond just Return Filing:
1. Clean Invoice Data:
A well-prepared invoice data not only helps you keep a track of your business growth and sale but also saves you any last-minute hassle and mishaps while filing your GST returns. Taxpayers tend to make some general mistakes while preparing invoice data which can be certainly avoided when using smart GST software.
Now with the advent of e-invoicing under GST, businesses need to be even more careful as there are some additional tasks have been added to their list. An advanced GST Software can seamlessly integrate with government authorized IRP to generate IRN for the invoice and thus use the invoice data to file GST returns in an automated way.
2. GST Reconciliation:
The Annual Return Form Filing cannot happen without reconciling all your purchase data with your suppliers’ data for the given period. Hence, it becomes extremely important to reconcile your data regularly to avoid last-minute hassles. The GST system does not allow the rectification of returns filed. Hence, if the data is not reconciled in time, it becomes difficult to claim or pay excess ITC, as the case may be, in subsequent months through amendments. The two main tasks that the GST software carries out for you are:
A. Download Purchase data from GST System
B. Match Invoices with GSTR 2A/2B
As a registered taxpayer, reconciling your purchase invoices with the supplier-uploaded invoices on the GST system is a critical activity as it determines your ITC claim. Further, the Government issues legal notices to taxpayers for discrepancies in the ITC claimed in GSTR 3B and the amount as per supplier uploaded details. A Smart GST Reconciliation Software like IRIS GST Software comes in handy for managing reconciliation tasks in a timely, efficient, and easy manner.
3. Organisational level tracking of compliance
Organisations having mutiple GST registrations need ot ensure compliances are done by all GSTINs. GST MIS reports provide a comprehensive overview of a company’s GST compliance status and related issues. They empower teams to make well-informed decisions in a timely manner, helping prevent losses and identify potential avenues for revenue growth.
IRIS GST Software provides a range of essential GST MIS reports that enable businesses to achieve accurate GST reconciliation and optimize their Input Tax Credit (ITC). In the dynamic landscape of large, mid-size, and MSME businesses, where numerous transactions occur each month, expert attention is necessary to manage data, handle GST filings, and generate e-invoices. However, with such high volumes of critical data, errors and mismatches are prone to occur. IRIS GST Software aims to mitigate these challenges and ensure smooth operations.
Read: 7 Ways CFOs can use MIS reports | Analyse GST Data
4. Monitor Vendor Compliance
Be it in-house software or a GST solution that you are using for reconciliation and ITC tracking, it is ineffective if it does not support mechanisms to know and track vendor compliance. With the Government tightening its norms, not only the ITC from non-compliant vendors gets blocked, but other operational activities such as e-way bill generation also get adversely impacted.
Every action or inaction by your vendors holds significance and directly impacts your business. It is crucial for vendors to timely file their GSTR-1 and GSTR-3B returns. This enables the government to auto-populate the data in your GSTR-2A and GSTR-2B. Non-compliance can block E-way bill generation, impacting your supply chain. Additionally, your vendors must diligently prepare invoices or e-invoices, adhering to the mandated guidelines without any errors or omissions.
Here are some extremely significant tasks that a GST software can simplify for you:
- Check Vendor GSTIN
- Match GSTR 2A and communicate for missing invoices
- ‘Send bulk mails
5. Initiate collections and send reminders to customers
GST software can be a valuable tool in facilitating efficient collections and payment management processes. With the recent surge in digital payments, GST platforms have adapted to provide connected banking experiences that enhance the ease of initiating collections and sending reminders to customers. These digital solutions enable businesses to send payment links directly to customers, allowing for quick and secure transactions. Moreover, they provide real-time information on payment statuses, allowing businesses to track whether payments have been made or not.
Additionally, the software’s functionality extends to sending automated reminders to customers, streamlining the receivables process and improving cash flow management. By leveraging these capabilities, businesses can optimize their collection efforts and maintain smoother financial operations.
6. Consolidate data needed for annual GST Audit
GST software plays a crucial role in consolidating data required for annual GST audits. It automates the process of collecting, organizing, and reconciling vast amounts of transactional data from multiple sources. The software ensures accuracy and completeness in data compilation, simplifying the audit process for businesses. By providing comprehensive reports, summaries, and analytics, GST software assists in presenting a clear and comprehensive picture of GST compliance, enabling businesses to meet audit requirements efficiently and effectively.
Recently, the CBIC has introduced a new Automated Return Scrutiny Module for GST returns. The module would give tax authorities the ability to carefully review the GST returns of taxpayers who have been chosen by the system based on data analytics and risk detection. So, the GST Reports help businesses consolidate data and ensure that they are prepared for unexpected audits.
GST compliance encompasses more than just filing returns. It involves adhering to various regulations and fulfilling certain obligations to ensure compliance with the Goods and Services Tax (GST) framework.
A GST software solution can help you stay compliant with all aspects and save you from penalties. It enables businesses to efficiently manage tasks such as GST return filing, other aspects of GST like e-invoicing, invoice management, e-way bill management, reconciliation of books, and compliance with anti-profiteering measures. Manual handling or preparing excel sheets to maintain your GST records is not just old school but also can cause severe mishaps while reconciliation. A GST software solution can automate the process and save you a tone of time, energy, effort and even money!
In conclusion, leveraging a GST software can greatly simplify your compliance processes and enhance your overall GST management. With the ability to automate tasks such as GST return filing, reconciliation, e-invoicing, ITC management, and generating comprehensive reports, a reliable GST software becomes an invaluable asset for businesses. By streamlining operations, reducing manual errors, and ensuring timely compliance, these software solutions empower businesses to focus on core operations and achieve greater efficiency in their GST-related activities. Embracing technology-driven solutions paves the way for seamless GST compliance, increased accuracy, and better utilization of resources, ultimately contributing to business growth and success in the dynamic landscape of taxation.
IRIS GST Software is India’s leading GST software to reconcile data faster and ensure 100% compliance!
Bulk Data upload facility – It helps to upload data for multiple GSTINs in one go
2P Summary – Provides a summary of uploaded data. Check your uploaded data with the count of invoices getting considered for reconciliation
Bulk download of GSTR 2A and GSTR 2B– For multiple periods, send ’Get GSTR 2A/ 2B data’ request in one go
Smart reconciliation – It runs on your data and provides the recon results with summary\
Advanced reconciliation – It helps to extend the scope of comparison between data that is in the supplier-only and purchaser-only category. Some rules that help in better reconciliation are:
- Checking invoices across the financial years
- Fuzzy invoice no. Logic
- Checking exact values ignoring invoice number
- Checking invoices within the tolerance provided by you
Monthly reconciliation results with monthly GSTR 2A and 2B report – Helps to decide monthly ITC and how much you can claim
Net vendor summary – Gives a glance reconciliation status for each vendor
PAN level reports and GSTIN level reports – It helps to analyze in detail of your purchaser-only and supplier-only invoices
Send Mail – By using this feature you can easily communicate discrepancies to your vendor
Vendor Cockpit – Includes recommendations for vendor payment release report and know your supplier report
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