Is there a need for GST software in a business? What are the pros & cons?

. 6 min read
Is there a need for GST software in a business? What are the pros & cons?

GST or Goods and Service Tax has replaced multiple taxations, and many people find it complicated to understand. The Government of India took a major step in changing the nation’s tax structure with the introduction of a dual GST structure in 2017. For automating, streamlining, and simplifying the GST filing process, every industry should consider using a feature-rich GST software.

Understanding GST in a nutshell

GST has positively replaced multiple (around 3-7) taxes making it easier for business owners to bring home some profit. It is a single indirect tax levied on the production, sale, and consumption of goods and services nationwide.

It is a multi-stage and destination-based comprehensive tax that sidelined several other indirect taxes in India. Its primary purpose is to simplify the structure of indirect taxation in the country. Goods and services are placed in different slabs for GST taxation. The dual structure of GST (intra-state and inter-state) sometimes complicates it.

There are 3 significant GST Components

  1. CGST – It stands for Central Goods and Services. The central government collects this tax on sales conducted intra-state.
  2. SGST – It denotes State Goods and Services. The state government collects this tax on the sale of goods and services within a specific state.
  3. IGST – It is an Integrated Goods and Services Tax. The central government collects this tax on sales made inter-state.
GST is subdivided into various categories

Explaining a GST Software

A meticulously engineered GST Software simplifies the complication existing in this tax compliance. Issuing GST compliance invoices, claiming ITC refunds and filing multiple tax returns, etc. GST software facilitates paying GST online, GST filing online, new GST registration, GST registration online, etc

The Importance of a GST Software in Business

Business owners need to manage their GST compliance in an efficient and organised way. There are several significant issues that a businessman face while managing GST billing without using the software. Both the taxpayers and accountants face hurdles.

The most noteworthy ones are

  • Double-checking to ensure that the data structure is correct in their GST compatible invoices
  • Storing these invoices properly is essential for claiming an input tax credit, but computer hard drives are not much reliable
  • One needs to perform GST returns thrice a month so keeping enough cash flow for daily operations become challenging
  • Uploading hard-to-access and unorganised data to the GST servers is frustrating
  • It is necessary to use the correct tax rate for each invoice prepared
  • Hiring and maintaining an inhouse-team of GST accountants and advisors is a financial burden.

These are prominent issues that a GST Software can easily, affordably, and quickly take care of. Hopefully, one can realise whether it is necessary to use GST software in the business.

A GST software may just minimise your efforts

What you need to look for while buying the software?

Keeping a fair idea on the significant features of a GST software facilitates making an informed purchasing decision.

1. Invoice Generation as per GST Format

Businessmen need to use only GST complaint invoices once they do GST registration. Such invoices feature

  • GSTIN of both the supplier and the recipient
  • Different GST taxes applicable under such as CGST, SGST, IGST, etc
  • HSN/SAC Codes
  • GST Rates applicable

The software ensures the correct entry of all the essential data in the invoices within minutes. It keeps the hassle and doubts away.

2. Customisation

Users can customise their GST bills as per their choice (brand style, company logo, or trademark) to communicate their business messages better. These custom designs and additions support enjoying a distinctive status, necessary for business owners.

Customisations can come in handy for tax related software

3. Scheduling and Notifications

With an advanced and feature-rich GST software, it becomes possible to

  • Scheduling invoices for regular customers
  • Get notifications once the recipient view the invoice
  • Get notified once the invoice is paid
  • Setting reminders for important events like payment collection

4. Cloud-based GST Software

When you invest in a robust web-based GST software, the benefits increase manifold. It allows users to create GST compliant invoices anytime and from anywhere, as long as they have their device and a steady internet connection.

  • Prepare invoices and send them to the recipients on the go now.
  • The maintenance cost is also negligible.
  • Timely payment collection becomes possible.
  • Business monitoring and expense tracking becomes doable 24*7 from anywhere
  • It saves time and cost both

5. ITC reports

Opt for a GST software that comes featured with an advanced ITC match/mismatch report. It is necessary that you file tax returns regularly for claiming ITC. Without it, claiming ITC regarding the GST you pay for inward supplies will become an issue.

  • ITC Match/Mismatch Report enables you calculating the input tax credit correctly.
  • You can match all your purchase details stored in the GST software against the GST invoices uploaded on the common portal.
Report generation & accessibility should be one of the key factors when looking for a software

6. HSN/SAC Code

These codes are instrumental in categorising goods and services under the GST regime. Taxpayers are required to clearly mention the relevant HSN/SAC Code for the goods/services they are supplying to the recipient of the GST tax invoices.

Do you have the time to scan through various Government websites for finding the HSN/SAC Code manually? Invest in good GST software If you do not have it.

The software with this feature supports finding the relevant HSN/SAC Codes on your taxable goods/services.

7. Security of Information

Apart from these important features, there are a few more to look for. Data security is paramount for taxpayers to ensure. The information it stores and sends is highly confidential that should stay protected from the prying eyes.

Your software needs adhering to standard security standards and advanced encryption technologies.

  • password protection
  • anti-virus protection
  • backup of the accounting data

You cannot afford to lose valuable business data.

Final words

We assume the readers by now have fully understood why investing in a feature-rich GST software is good for their business. It simplifies and streamlines the entire GST filling and tax-paying process. Accuracy, timeliness, organisation, easy accessibility, and convenience are the major hallmarks that associate good GST software.

It is designed to save time, reduce cost, keep the human errors at bay, and ease the complicated processes involved. Calculating GST, GSTr 2, GSTr 4, GSTr 7, GSTr 9, and as such becomes simple.

GST payment online, filling, and registering should not confuse the business owners and accountants any more now.

Also read:
GST for Every Business
GST: Types of GST in detail


Q. Do non-resident taxable people require registering for GST?

A. Yes, they need registering for GST in India.

Q. What is the GST on real estate in India?

A. As per the latest news, the GST Council has reduced tax rates from 12% to 5% on premium houses. It also has cut down GST rates from 8% to 1% on affordable residential properties. The new tax rate policy, however, will not offer any ITC benefit. 12% GST is there on under-construction houses. On the other hand, there is no GST tax applicable on ready to sale houses, which possess a Completion Certificate.

Q. GST is applicable to what amount?

A. If your business has a turnover of up to Rs 40 lakh annually, then you do not require to register for GST. Businessmen with Rs 1.5 crore turnover can pay only 1% tax if they opt for Composition Scheme.

We hope our article turned out to be useful for you. For more such informative content, you can visit these linked articles as well:

GST On Imports And Exports GST On Interest Income GST On Indian Economy
GST On Furniture Items GST On Laptops GST On Works Contract