Every individual who comes under GST is required to maintain and keep records at their principal place of business. You should maintain account if you are the owner of a business, transporter, or an operator of a warehouse, godown, or any place that is used for storing goods. Every person whose turnover exceeds the prescribed limit of Rs. 2 crores during a financial year will have their accounts audited by a chartered accountant or a cost accountant. A GST new registration could be easy to procure. But, it could be a huge task to maintain records and address the nitty-gritty of filing taxes manually. With the use of sharp technologies in the Latest GST software, keeping records and filing taxes became an easy task. Anyone with a little or basic knowledge of taxes can file their taxes for the most part. There are still a few tasks that should be done through a charted accountant, like auditing. But, overall, technology use has made a significant impact on making life easy for people registered under GST.
Records / Accounts that must be maintained under GST
- A record should be maintained of goods purchased within a tax period for production, manufacturing of goods or provision of services.
- A register of goods produced should be maintained. In this basically, the account should contain details of all the goods manufactured in a production house or a factory.
- A record must be maintained about all the sales that were made during a tax period.
- An accurate record must be maintained about the inventory available at a manufacturing unit or at any place of business at any given point of time.
- Record for Output tax paid should be maintained. This is a register of the details about the GST paid for a particular tax period.
- A record of details of GST liability outstanding should be maintained, which is to be adjusted against input credit or paid out directly.
- A record of Input tax credit availed for a given tax period should be maintained.
The government could notify through specific notification if there happens to be any additional records or accounts to be maintained. In spite of the government taking measures in educating taxpayers about the accounts to be maintained or general know-how of GST, it remains a difficult task for people to get familiar with it. There are some complex rules that should be considered while filing taxes or maintaining records. A software equipped to handle all these challenges has made life easy for any taxpayer.
Software that is available today is equipped with technologies that are designed to handle all the challenges you may face during tax filing or maintaining records.
Positive Impact of Technology
The technologies that are available in the market today have come a long way. When GST was introduced in July of 2017, there were only a few software which provided with solutions to perform the required tasks. But as the need for better solutions increased, software companies started to make smarter software. It is much easier to manage accounts now than compared to how things were a year or two ago. Earlier, there were issues of frequent technical glitches and last-minute filing, which was a big cause of frustration. Though some of these issues still persist, there is significant ease with which you can file taxes now because of technological advances in software.
There could be a little jargon that comes to mind when we talk about technology and GST together. Without the use of technology, filing taxes could be a nightmare. Accounts and filing taxes – The digits, registers, bills, inventories, records of items bought and sold – All these could drain your energy and could be time-consuming. Clearly, anyone who has tried to file their taxes for the GST with little or no knowledge knows that it is an impossible task. Simple records of sales and purchases are something that can be easily done. But when it comes to more complex tasks, there could be confusion. Even if you have knowledge about taxes and accounts, the chances are that you might commit some mistakes. Managing everything could be a huge job, and there is only so much a person can do. You might find yourself rushing to manage your taxes and billing before the due date. With the latest software performing complex tasks at fingertips, you can focus more on business and less on the issues and complicated tasks.
There are many software solutions that are present now for every task. Calculating taxes, maintaining records, or filing taxes. Everything has become super easy and can be performed on the go, thanks to the technologies that are used in building this software. Some of the areas where the technology really developed are Accessibility, Security, Integration, performance, Multi-tasking, and Ease of use.
The positive effects of automation technology can be seen with numerous tasks performed with any GST software. Automation helps in improving the filing of returns and helps individuals and business owners to remain compliant with filing their taxes in time. It would be a very tedious job to generate a report or handle GST billing without GST software or automation. It makes you file taxes in an easy to follow steps and consumes minimal time. It also helps in the reconciliation of invoices and statements. The use of software also helps in keeping track of outward and inward supplies.
Generally, there are two types of GST software that gets the job done depending on the requirement. A GST enabled accounting software and software for filing GST. The difference in both software is in how it functions and the purpose it meets. The software enabled with Accounting helps with accounts and bookkeeping along with GST filing. Software dealing with GST filing is linked with the account and makes invoices and prepares reports for filing to the GST portal.
The creation of invoices is a major factor in the proper filing of taxes. Software is able to fill invoices effectively. Some software comes with reconciliation tools enabled with fast processing of receipts, which helps in the speed of filing return. Multi-User interfaces also help in filing returns faster.
Technologies that are used in the latest GST software for GST give a glimpse of what the future could hold. There is a possibility that someone with GST new registration could just input details, and the software performs all the required tasks completely on its own. The software that are available now performs some of the important tasks on automation. With new technologies developing, everyday filing taxes or maintaining records might get much easier in a year or two.