GST is a well-known term to Indians but not everyone is aware of the real meaning of this term, and the information available on websites is not understandable for common people. As the terms used there are mainly technical which are a bit high for a non-business person; keeping this in mind, Bigpage has thought to deliver an informative article over GST and related matters.
This article will help you to know about all the small details about GST and give them enough knowledge to work with GST from now on. The article is divided into some small sections having each part of GST Software and filing GST.
What is GST?
The term ‘GST’ resembles the phrase ‘The Goods and Services Tax (GST)’, which is considered the most known reform in India’s indirect taxation system. GST anticipates that the tax base will be with minimum exemptions. The main expectation from GST is to eliminate all indirect taxes and only GST would be levied.
GST is a tax imposed on multiple industries, specifically for manufacturing, sale, and consumption of goods and services. This tax will be a substitute for almost all indirect taxes by the State Government and Central Government. Exports and various direct taxes such as income tax, corporate tax, and capital gains tax are not included in GST, hence will be unaffected by the new taxation system.
What is GST in simple words?
GST Software helps people to fill their monthly, quarterly, or annual income return and other agreements are also available there. GST Software will help to manage your GST compliance easily and quickly.
GST is generally paid on the purchase of goods and services which can be set off against the output tax payable on the supply of goods and services. So, GST provides for comprehensive and continuous tax throughout the supply chain.
Persons whose turnover exceeds the specified limit are compulsorily required to get registered. Persons who are selling goods/services through E-commerce operators are also required to get registered. A person may also register voluntarily and all provisions also applicable to him. No fees are charged by the government for registering under GST.
This GST filing is done through some easy steps which are mentioned below can give a clear vision to beginners:
- Registration
- Composition Scheme
- Invoicing
- Input Tax Credit
- Reverse Charge Mechanism
- Payment of GST
- E-Bill
- Accounting for GST
How many parts of GST are there?
There are four different types of GST as listed below:
- The State Goods and Services Tax (SGST)
- The Central Goods and Services Tax (CGST)
- The Union Territory Goods and Services Tax (UTGST)
- The Integrated Goods and Services Tax (IGST)
The implementation of the Goods and Services Tax (GST) replaced several taxes of both the state and the center. The levies that were replaced are listed below:
List of State taxes:
- Value Added Tax (VAT) or Sales Tax
- Octroi
- Entertainment Tax
- Tax on Lottery or Betting or Gambling
- Purchase Tax
- Luxury Tax
List of Central taxes:
- Service Tax
- Additional Excise Duty
- Central Excise Duty and so on
Little About The State Goods and Services Tax (SGST):
The State Goods and Service Tax is known as SGST, a tax under the GST system applicable to the goods and services within the same state transactions. In this process, both State GST and Central GST will be applicable.
Little About The Central Goods and Services Tax (CGST):
CGST is referred to as the Central Tax which applies to transactions of goods and services within a state. Imposed by the Central Government, CGST ensures to replace all other Central taxes including State Tax, CST, SAD, etc. Prices of goods and services under CGST are charged following the basic market price.
Little About The Union Territory Goods and Services Tax (UTGST):
The Union Territory Goods and Services Tax or UTGST is the mix of State Goods and Services Tax (SGST) which is levied on the supply of goods and/or services in the Union Territories (UTs) of India.
Little About The Integrated Goods and Services Tax (IGST):
The Integrated Goods and Services Tax or IGST is a tax under the GST department applied between 2 states’ supply of goods and/or services as well as on imports and exports. The IGST is governed by the IGST Act.
Which Software is best for GST?
A GST Software enables the taxpayers to determine the tax payable accurately and avoid errors in tax calculation to make timely payment of taxes. A good GST Software provides the list of GST rates such as CGST, SGST, UTGST, IGST, and CESS applicable under GST.
It may be difficult to choose between multiple GST software options in the market. There is a list of some GST software that is very popular in the market with which the new included name is Bigbook.io.
There are 11 known GST software that may be considered best from the rest depending on their popularity, availability, and overall service. Some of them are:
- Gen GST
- ClearTax GST
- Marg GST
- Tally GST
- Saral GST
- Bigbook.io
- BUSY Accounting Software
- ClearTax
- Giddh
- HD POS
- Legal Raasta
- Zoho Books
- Tally.ERP 9
What to Keep in mind While choosing a GST Software?
Every firm has different expectations from their suitable accounting software and as the businesses are different, it is better to keep some points in mind while choosing. These points are mentioned here:
- The software should include all requirements relating to payroll.
- The system must track available stock, work in progress, orders, jobs, etc, and other task management requirements.
- There must be a provision to handle more than one bank account.
- The software must handle foreign exchange.
- A system has to include to keep records of each business or various departments under one business unit.
- The software has to provide an online platform for different activities such as online payments, verifying records,
- The system keeps a managed record of what do customers buy, how much they buy, the tax charged on it, etc.
Importance of GST Software
Developing a business is not an easy task, there should be an appropriate setting and things to run a successful business. In the case of tracing and accounts related work, everyone has to be accurate. In the case of digitalizing the business, everyone has to manage taxes and accounting with good Online GST Software.
- It should generate GST invoices and should be able to customize the look and feel according to the business.
- Should be able to categorize the expenses into different categories.
- The software must be able to manage inventory, inward-outward stock movements, and wastage.
- Generate Bank Reconciliation Statement by importing the bank transactions.
- Keep a record of inventory purchases and purchase orders.
- Create and manage GST taxes.
- Record-Journal Voucher entries.
- Managing a database of customers and vendors.
- Updated information about accounts payable and accounts receivables so that the user is well aware.
- Help generate Balance Sheet, Trial balance reports, and Profit and Loss statements as for and when required.
- Give a platform for different users to use it in a business unit at the same point in time as at times there are different users in one business unit.
Features of GST Software
While choosing any GST Software, one should keep in mind about their needs, the type of business they are going for or the market they want to work in. Here are some important matters which are must to know:
Security
Multi-Platform Adaptability
Flexibility
Notice
Better User Interface
Invoice
Payment
How long does it take to implement GST software?
What is the GST process?
Features of GST Billing Software
How is GST calculated?
Who pays GST tax?
Who can file a monthly GST return?
Best Companies to File your GST Return