The introduction of the Goods and Services (GST) Tax is a revolutionary step that had led to the makeover of indirect taxation in India. The GST tax is a comprehensive indirect tax on manufacture, sale, and consumption of goods and services throughout India and will replace taxes such as excise, VAT, and service tax.
The new combined GST has led to a huge change in the taxation policies of business organizations in India. This change can be successfully overcome with the successful adoption of customized GST software. This software is a ground-breaking tool for Indian retailers, suppliers, distributors, traders and manufacturing houses and enables businesses to understand the intricacies of the GST tax structure.
GST software is a capable instrument which handles all aspects of a firm’s accounting and taxation processes. The software has a number of modules and can handle the billing, invoices, and accounting and taxation needs of a company.
Organizations all over India are now fast realizing the value of GST software. Most of the big business houses have already identified trustworthy vendors for the implementation of GST software.
So, why are organizations investing so much in GST software and what can be expected from this software? It is indeed essential to be aware of all the positive aspects and features of the GST software before one takes the decision to adopt it.
Hence, let us have a detailed look at the various advantages that a business can accrue due to the implementation of the GST software:
- Ability to preserve important data on invoices and tax reports of each state/sector which can be easily accessed by multiple users.
- Capacity to merge together business mechanization and tax automation to create exact and detailed GST tax treatment plans for businesses.
- Error free systematic and time GST preparation and filing.
- Avoid errors in reconciliation and works real-time with business clients.
- Formulates comprehensive tax reports and analytics for effective client management.
- Updates records of supplier GST invoices and reconciles them every day.
- Tailor made for a variety of different businesses as it is highly customizable according to specific organizational requirements.
- GST software helps to keep track of payments by providing specialized reports when invoices are due.
- Manages complete details of billing and financial records.
- Ability to convert a bill transaction in any format as well as send the bills through email and instant messages, thus saving time.
- Better tax compliance since all aspects from registration to filing monthly tax returns and payments will be managed through the GST software portal.
- Informative dashboards and analytical reports to enable quick decision making and transparent operations.
- Cloud-based GST software enables the access to real-time data, anytime and anywhere.
- Helpful for manufacturing firms as aids in complete inventory and purchase management.
- GST software is continually up-to-date, adaptable, innovative, and always provides access to the data, hence is an ideal application for saving time and cash.
- High level of data security through multiple layers of firewall and state of the art encryption technology to safeguard user privacy of sensitive tax documents.
- Provide ancillary services such as consolidation, tracing and transmittal of tax data required for filing return of the businesses.
- Various e-learning modules of GST software aid managers familiarize themselves with taxation policies
- Facilitates e-Payment of Taxes as per Liable GST Rates.
- Multi-platform adaptability, making the software accessible from desktop, tablets or mobile phones at any point in time, thus increasing the ease of online return filing.
- Comprehensive inventory management and financial accounting software.
Like every coin has two sides, so is it with the implementation of GST software. Adopting the correct software for your business is crucial, as adopting such a major technology change involves a massive investment of money, time and effort from an organization.
So, let us have a look at a few disadvantages of GST software, which one has to be careful about while making a choice for your organization:
- GST software is sometimes prone to virus attacks, thus important and sensitive financial data may get lost.
- Version upgrades of GST software are often chargeable, thereby increasing implementation costs.
- Local Area Network (LAN) connection may be required for multi-user operation of the software.
- Maintenance of up to date credit ledger, cash ledger, and tax liability register.
- Security hazards are inherent the GST software, and there may be data theft or misappropriation.
- Certain software may have bad integration of invoicing modules, making it less user-friendly and difficult to operate.
- A sizeable monetary investment is required in the server to operate at multiple locations.
- GST software is flexible enough to integrate with existing systems such as Tally Erp, etc and provide a seamless experience.
- Certain GST software is not business specific, and this lack of flexibility prevents customization of the software features to suit particular organizational requirements.
- GST software requires hands-on training, and if this training is not imparted users may face difficulty in understanding the software modules.
The criticality of the GST software for modern Indian businesses cannot be disputed. The implementation of the goods and services tax is a complete overhaul of the existing tax system. Business enterprises have to be prepared and adapt to the change with revitalized energy.
This would entail adopting customized GST software to aid the transition to the new tax regime in a smooth manner. This radical innovative software accommodates a host of business specific requirements in a sleek and user-friendly interface.
GST software plays a vital role by assisting in managing outstanding invoices, account balances, tax statements and overall financial position of a firm. GST software provides business organizations a huge challenge and opportunity to get digital ready and battle the new tax regime!
Hence, it is imperative to have complete knowledge about the GST software to bring about a transformational change in your business.
Related Read: GST Impact: A Mixed Bag For Real Estate After GST Rollout
(Disclaimer: This is a guest post submitted on Techstory by the mentioned authors. All the contents and images in the article have been provided to Techstory by the authors of the article. Techstory is not responsible or liable for any content in this article.)
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About The Author:
Ankit Dudhwewala is the founder of SoftwareSuggest.com, a larget business software discovery & recommendations platform. He is a marketer by passion and a salesman by heart. You can keep in touch with him at @ankitdudhwewala