Tax filing has always been a complex process in India. The manual procedure is nothing more than a lengthy task and an opportunity for human error. This is the reason why many businesses are relying on GST billing software.
GST billing software has simplified the invoicing and tax filing for both small and medium-scale businesses. Here are some insights on how using software with GST invoicing can help you save time and resources.
Goods and Service Tax in India
Good and Services Tax is an indirect or consumption tax used in India. It aims to create a unified tax regime that is transparent and reduces strain on the end-user. It subsumes various indirect taxes at different levels and reduces the leakage in the tax payment process.
There are different tax rates for each product and service. There are also tax rates based on your service reach. Rates for SGST (State Goods and Service Tax), IGST (Integrated Goods and Service Tax) and CGST (Central Goods and Service Tax) are also there.
How GST Billing Software helps your business
Easy to keep up with GST norms
GST has documentation norms of product descriptions, warning notices, refund, warranty, and service. The invoices also should have all the basic details about the business, and information like HSN codes, tax rates, and others. GST billing software comes with custom fields to add these details.
Ease of invoicing process
GST invoices need the right HSN codes based on the product or on the service. It should mention the inter-state and central tax rates, registered GST number, and other details. These details can be pre-recorded in the billing software. The invoicing process gets easier with templates based on the pre-recorded GST information.
Easy to get paid
Using GST invoices with the tax rates increases trust between customer and business. The Good and Service Tax is transparent and helps the customer to avoid indirect taxes involved in various stages of the purchase. They also make the process of filing taxes simple for the customer which makes them more inclined to pay.
Easy to avoid errors
Using a manual process for invoicing can create various issues in small and medium-scale businesses with multiple products and services. Errors during creating invoices with tax rates should be avoided. The billing software that can fill in the details automatically based on the information stored can solve such problems in a go.
Easy to account and access
Having a single platform that manages all your GST invoices will help you with accounting and filing tax returns. The invoices for all the products and services will be stored in the software automatically. They can be accessed anytime which makes accounting efficient. Using cloud-based software will increase efficiency because the data is accessible to your accountant and staff from anywhere and anytime.
Requirements for billing software
Based on the list above, a software service that provides GST invoicing should have the following features.
- Templates with fields for information like HSN codes, Tax rates, Registered GST number of the business, and others.
- Ability to automate the GST invoicing based on the tax registration details and product information.
- A cloud-based platform that allows multiple users to access the data.
- Security and privacy feature to store the business data.
- Integrated payment and inventory management feature to improve efficiency.
- E-way bill, and other invoice formats.
- Business reports based on invoices and transactions.
The best GST billing software in India fulfils these requirements. It offers the benefits mentioned above and simple to use. The software can be accessed from both desktop and mobile. You can also track the sales, inventory, and invoices in real-time.
It also provides an inventory management feature along with invoicing. Having an integrated solution for invoicing and inventory management will increase efficiency, particularly for small and medium-scale businesses.