It is no old news when the people understood that the new taxation regime is not about all the pros. It comes with some dependent de-merits as well. However, the majority of the backlashes have been mended by some serious efforts of the government. But a question that still remains unanswered inside the people’s psyche is for how long the problems will continue? The taxpayers of the nation are continuously in the search of a justifying solution to the problems related to GST which, regardless of their concerns, pulls their businesses back causing discomfort.
Since the GST came into effect, what might have attracted your mind the most is the lucrative utility that few software-related or digital market promise to make the GST easier. And this trend has always been there since the beginning of the journey of the new taxation regime. Although, it might sound like that this whole idea of the companies providing help with the GST is glued with some dubious tactics, but it’s not. The manual compliance with the Goods and Services Tax did not harm much but made the pathway of several businesses bumpy, especially that of the small-scale ones.
The pros and cons of the GST which made their impact almost all over the nation, were stretched together, experimented, and in return, we got the GST reporting tool. Tom Freston said that “Innovation is taking two things that already exist and putting them together in a new way”. Similarly, the advent of the GST tool compliments the concrete idea behind this statement.
What benefit did GST reporting tool brings along?
The technology always assists to the powerless. And the way the digitalization is taking over the entire nation is commendable and assures a bright future. Also, the current government in our nation holds a strong sentiment in the favor of making the country digitalized. So, GST sector took a positive hit from technology and hence we can see so many tools coming up in the market. Here’s how the GST reporting tool made the taxation process easy:
1. An easier invoice creation- The very basic but important factor of complying with the Goods and Services Tax is the invoice creation. You do the business throughout the day and end up sending and receiving multiple goods and services. And more the business, more the invoices. Hence, using the tool gives you an extra hand stretch to reach out to all the invoices of your business and do hassle-free taxation.
2. Return filing- So if you have registered your business under the new taxation regime then you must be aware of the fact you are bound to file 37 returns in a financial year. Feels like an incredible load? Well, it really is. But if you have your business backed up with a high-end & user compatible software then your work would minimize to just upload the invoices and other required documents.
3. The correct claim of input tax credit- One amazing factor of GST is that it allows the taxpayer to claim the amount paid on input purchases. The payable tax on output (that is the final product) always exceeds. But the calculation of the tax paid on input becomes hectic as it involves multiple steps. Calculating the input tax credit with an efficient GST reporting tool adds convenience to the process and makes it time-effective.
4. User-friendly- A software being user-friendly doesn’t only mean that it has an appealing interface and easy looking options. In the case of a GST software, the user is allowed to invite clients/businesses in bulk, modification of the existing business, and even creation or addition of multiple businesses with unique GSTINs in the system. This particular freedom of maintaining records frees the user from doing separate arrangements for every business he indulges in.
5. Integrated tax calculator– As you must know that the government implemented the GST having 5 different slabs of tax percentage applicable all over the nation. The calculation of the payable tax becomes difficult if you are involved in the business with multiple other businesses that fall on the different tax percentage. An integrated calculator will help you in determining the tax value and as the taxation now is destination-based, it will also help you in finding the appropriate HSN/SAC codes associated with all the supplies.
The ultimate aid for the people to comply effectively with the Goods and Services Tax came into the picture as a result of the technology only. The GST reporting tool has not only made the rugged process of the new taxation regime seamless but also opened the gates for the people to witness the bigger aspect of the technology. And praising the idea of making everything digitalized and moving ahead towards a brighter future, soon India will make its entry in the list of the first-world countries.