GST (Goods and Service Tax) is a comprehensive indirect tax system wherein the compliances of every party in the supply chain are interlinked and at the same time requires one to file multiple forms. GST compliance requires reporting multiple invoices, reconciliation of invoices for maximizing ITC claim, e-invoicing, and various other things that taxpayers need to take care of. For large and mid-size businesses, there are hundreds and even thousands of invoices that are generated every month. Considering these complexities, managing the GST Compliance process manually could be inefficient, time-consuming, and error-prone. At the same time, taxpayers also need to cope with constant changes in GST law and compliances.
However, the GST implementation in India has also opened up possibilities for use of technology that can streamline process for all the tasks involved in GST compliance.
Thus a secure and comprehensive GST filing software is necessary to ease the course not just for filing the return but also to acquire data, reconcile, and for ITC claim among other things.
Here’s how a GST software can simplify your GST Compliance:
Ensure correctness and enable automation for recording invoices:
The GST Compliance software can easily validate any error or invalid entry in the invoice fields and also validate the GSTIN number based on the standard GST format. GST software can also help in getting data from the Government GST portal.
Validation of GSTIN, as well as fetching data from the GST portal, will help during the reconciliation process. With mid-size and large businesses there comes a huge responsibility of dealing with multiple invoices and multiple vendors. Input Tax Credit (ITC) can be claimed only if the vendor is a registered taxpayer, or you have to go through the RCM route. Thus well-versed GST software helps in identifying, checking, and monitoring the compliance health of their counterparts.
Make Reconciliation and ITC computation Process Efficient:
To simply put the reconciliation of purchase invoices ensures maximum and accurate claim of ITC. Taxpayers are given the facility to claim the ITC for GST paid on inward supplies. To ensure higher ITC claims, businesses need to ensure that their vendors are registered and are filing their returns on time. So, the reconciliation process is basically matching our purchase data with the returns data of your vendors in order to get the correct Input Tax Credit. For large businesses, this isn’t about a few invoices but thousands of invoices and transactions thus the process becomes tedious. Thus, GST compliance software is of utmost importance in such a situation.
A good GST software can help with ITC Match/Mismatch reports and aid to take the appropriate action. Also, when multiple people are involved in this process, mistakes are bound to happen, creating a risk of hampering the overall recon process. GST compliance software can match invoices to its counterparty people, not only by using advanced algorithms but also allow users to define tolerance limits to ignore mismatches of certain kinds. Reconciliation is a very crucial step under GST. And the software must be dependable enough to carry out this process smoothly.
Seamlessly interact with GST Portal:
Taxpayers need to file many returns with different frequencies such as monthly, quarterly or annual. GST compliance entails granular reporting of invoice level information. Your GST Compliance software should be a robust conduit between your source systems and the GST portal, enabling you to send and fetch data without any hassles. When the volume of invoices generated is high and when there are more GSTINs to handle, use of a speedy and scalable GST solution is necessary.
Integrate with one or many source systems:
Many businesses these days work with ERP (Enterprise Resource Planning) software systems. Further, there could be one or many systems with which a business works. GST compliance however requires all the data to be compiled and computed together. Your GST software can help you with this. Your GST software will not just get integrated with the ERP but also simplify your task by automatically extracting data. You do not have to worry about working on two systems (ERP and GST) separately.
Manage and monitor GST compliance all under one roof:
With GST, compliances are to be done for every state in which business operates. However, the systems and the internal process of accounting and billing could still be at centralized level. Your GST Compliance software should provide you with the flexibility of aligning the GST reporting processes as per the organization structure. This implies giving data view and access controls to different people, or ease of sending data for business as a whole, and let GST software prepare reports state-wise.
While doing this your GST software should give you consolidated reports and views at the business level with an ability to drill down to state-level reports as well.
Cloud-based GST Compliance Software:
Access anytime from anywhere is the biggest advantage you have when hen your GST Compliance Software is cloud-based. All the information is organized in the cloud. You need not be bound to your desktops to check the updates or processes.
The lockdown situation due to COVID-19 has forced companies in all sectors to work from home as much as possible. Some large and mid-size companies are even considering work from home as their new norm. This new work culture is indeed the future and is here to stay. In the present times, having a cloud-based GST Software is the way to go!
Know about how ASP and GSP can simplify your GST compliance
IRIS Sapphire – A product of ‘IRIS GST’ does all this and more!
IRIS Sapphire, an easy to use GST Compliance software, is trusted by more than 850+ business houses across the country for simplified GST filing. IRIS GST is an authorised GST suvidha provider (GSP) in India. Along with offering basic features like GST Compliance Tracker, Bulk Operations, Vendor Management and so on, IRIS Sapphire also offers value added services like:
- Know Your Monthly ITC
- Smart Reconciliation
- Download data for all your GSTINs in one go
- GSTR 6 , GSTR7 , GSTR 8 and GSTR 2X enabled
- Automated GSTR 9 Preparation
- GSTR 3B auto-population from filed GSTR 1 and GSTR 2 return
- Take Actions on GSTR 1 data
Still need more reasons to choose IRIS Sapphire? Here are more!
- It is a complete ASP+GSP Solution
- Is 100% Secure and Scalable
- Offers excellent Customer Support with expert team members
- Agile Product Development
- Built-in Analytics & Dashboards
- Cloud Based Software