As per the speculations, the Goods and Services Tax regime would begin in India with effect from July 1, 2017. Various experts claim that in order to ensure successful migration into GST era, businesses in India, across all industrial domains, would be in need of an efficient, robust, and smart tool. It is so true that there are several ITeS companies and accounting firms that the government has appointed particularly to take care of this function, but one must not forget that majority of businesses in India, particularly the ones with limited amount of resources, are totally unaware about how to ensure successful migration. These businesses have yet not comprehended the factors upon which they should evaluate any GST compliance tool. This blog would shed light on crucial characteristics of a GST compliance tool.
Reconciliation of invoices: During the GST era, it would become quite important to ensure completeness, accuracy, and reliability of sales data. To ensure the same, the government has decided to introduce invoice reconciliation concept. All the business entities will have to ensure that their invoices are in accurate agreement with the invoices of their vendors in the same supply chain. Thus, reconciliation of all invoices becomes one of the crucial features of GST compliance tool. You must ensure that the tool that you have chosen for your business has this feature.
Preparation of returns: There are various tools in the market in India that can help you prepare GSTR forms with utmost ease. These tools can help you comprehend all the regulatory guidelines, and they can help the users glean through crucial details efficiently. You must choose such sorts of tool as it can help you maintain a high level of compliance throughout the GST era. If the tool that you have chosen for your business cannot help you prepare GSTR forms, then it can expose you to the risks linked with non-compliance.
E-filing of all types of returns: Numerous competent ITeS companies have claimed that they are developing a robust GST compliance tool that can help users file all types of returns with utmost ease. Not only this, the developers have also asserted that their tools can make it a simple process for the businesses to maintain absolute compliance with each and every regulatory guideline. Businesses must purchase such tools as it can help them improve their GST compliance rating. More importantly, these tools can help you track all the information related to payment success and failure quite efficiently.
E-payment of taxes as per liable rates: Apart from filing returns timely, businesses also need to ensure that they pay all the taxes before the end of the due date. This can certainly be a challenging thing to ensure if you do not invest in a robust compliance tool. Various accounting firms and IT companies have claimed that their tools can help users pay taxes electronically, and therefore, you must choose the tools that ensure such provisions. This will help you maintain distance with non-compliance or delayed payment.
Secure and scalable: These two are quite crucial features that you need to be extra cautious about before you purchase any tool for your business. You need to ensure that you select secure GST compliance tool for your business because it will help protect your sensitive sales data from all sorts of threats. Additionally, you also need to ensure that the compliance tool of your choice is scalable. It is so true that your business needs would keep on changing, and therefore, it always is a prudent choice to opt for scalable GST compliance tool.
Quick content updates: Last but not the least, businesses need to ensure that the GST accounting and compliance tool of their choice has this feature. It is so true that there would be so many changes and modifications during the early days when GST is introduced in India. Herein, if a business firm would choose a tool that does not have this feature, then it can have a drastic impact on its compliance rating. On the other hand, by selecting a tool that has the feature of quick content updates, you can be well-prepared for all sorts of changes and modifications.
In short, you must be extra cautious about these features of GST compliance tools while selecting any specific one for your business.