Over the past few years, technology has evolved in every aspect of our lives, including how we do business. The introduction of the Goods and Services Tax (GST) in India has further accentuated the trend by introducing a unified tax system requiring businesses to comply with new rules and regulations. Per reports, GST has had a positive impact on the manufacturing sector in India. In this blog, we will explore how technology has changed tax compliance in the GST era.

GST Problems and Solutions

Dealing with taxes in the GST era can be challenging. So let’s understand the problems and GST solutions.

Challenges Related to GST

1. Managing a vast volume of transactional data.
2. Matching GSTR- 2A with purchases.
3. Reversing credits when payments are not made within 180 days of invoice issuance.
4. Ensuring precise Input Tax Credit.
5. Correcting errors made by human intervention by modifying GSTR- 3B.

Challenges Related to E-way Bill

1. Request to change in location of delivery by the recipient.
2. Expiration of the e- waybill or exceeding the time limit for the extension.
3. Tracking the shipment by all relevant parties.

Challenges Related to E-invoicing

1. Dealing with a high volume of transactional data, addressing requests to modify, partially accept or cancel goods for which e-invoices were issued.
2. Correcting human errors in e-invoicing data.
3. Catering to customer demands to split e-invoices into different parts.

GST complexities will continue to persist. Hence it is essential to bring technology to ensure timely and right GST compliance. So let’s understand how technology can help you manage GST problems.

What is a GST Compliance Solution?

GST compliance solution is a software tool that helps businesses comply with Goods and Services Tax (GST) regulations. The tool automates filing tax, invoice management and other compliance-related tasks, which helps reduce errors, improve efficiency and ensure adherence to the law.

Features of The GST Compliance Solution:

1. Automated Tax Returns Process: The tool helps in GSTR 1, GSTR 3B and GSTR 9 filing and helps manage purchase information records.
2. Intelligent Reporting: The tool allows you to access various GST-ready reports such as:

• GST 2 vs GST 2A multi-month.
• GSTR 3B vs GSTR 1, consolidated annual filed reports for GSTR 1 and GSTR 3B.
• Ledgers- Cash, Credit and Liability direct from GSTN, GSTR 1.

1. Historical Data: The tool navigates and downloads the historical data quickly.
2. Data Reconciliation: The tool compares the data added by the supplier and the purchaser for data accuracy.
3. Integration and Automation: The tool allows you to integrate the filing software, such as tally GST or any other ERP, without a hassle.

Conclusion

As businesses navigate the complexities of GST, technology is a powerful ally in achieving seamless compliance. GST compliance solutions provide companies with robust software tools that automate tax filing, streamline invoice management, and simplify compliance-related tasks. With automated tax returns, intelligent reporting, historical data access, and data reconciliation, these solutions empower businesses to efficiently navigate the GST landscape, minimize errors, and ensure timely adherence to regulations. Embracing technology is the key to unlocking efficient and error-free GST compliance.

Frequently Asked Questions

1. How can I reduce my GST bill amount?

One can reduce GST by opting for tax-saving strategies, including claiming an input tax credit, using a composition scheme, and maintaining proper records and invoices.

2. What is meant by a GST solution?

A GST solution is a software or technology-based system that helps businesses comply with GST regulations, automate the tax process and simplify tax reporting.