Even though the government, in the past, has been able to increase the taxpayer base, but couldn’t resolve few of the elemental issues of the entire taxation process. No one would have expected that the government will come up with five different tax rates. And soon as GST came into effect, the people started pulling off the loose strings of the taxation regime which further strikingly broke the illusory balance of taxation that the government had imagined. Surprisingly, the matter that how the people will effectively comply with GST escaped both, the government and GST Council’s mind.
Still the government, bearing the harshness of the common taxpayers and businesses altogether, managed to bring fugitive stability in terms of the revenue collection and new registrations. But what good did it bring to you? Well, if your expectations are to get rid of the regime, then you are spoofing yourselves. But the way one specific aspect of the technology speeded up turned out to provide relief to the taxpayers that is no less than getting rid of the regime itself. In addition to the relief, GST also allows the taxpayers to claim the money paid on the inputs back. Let’s see how this benefits you:
Input tax credit
Whenever a person purchases something from the market, he pays the tax. This tax keeps on increasing as the product moves further from the manufacturer to finally the consumer, the consumer being the highest taxpayer. Here is a simplified version of ITC:
- Tax paid on raw materials- INR 10
- Tax paid on other inputs- INR 90
- Total tax paid by the manufacturer- INR 100
- Finally, the product is priced high for the consumer and the tax increases, say it becomes INR 150.
- Now, as per GST rules, the manufacturer can claim the taxes paid on the inputs that are, INR 100.
Although this interpretation might seem quite easy, when bigger invoices of the purchase/sale are involved, the calculation becomes strenuous. And in such case, GST credit calculator brings efficiency and accuracy to the entire process. Not only the input credit, but you can do all sorts of calculation related to GST. Here’s how:
- The invoices of different backgrounds are categorized and the values are retrieved for the calculation.
- Once the values are final, the calculator automatically fills in the tax percentage of the goods or services. For example, steel = 18%GST.
- After the successful upload of the invoices and tax rates, the final input tax credit is calculated and showed in the results.
Besides the credit calculator, the other laborious tasks of GST can be made easy with GST software. In today’s modern age, a software, if authentic and reliable, can make tedious processes like taxation easier by cutting the cost involved.
What benefits can you take from the software?
Typically, an enhanced and well-integrated software would work wonders for you to comply with the Goods and Services Tax Act. Till the ambiguity of GST resolves, you can enjoy the following benefits of the software:
- Effortless return filing- You would require putting a minimum amount of input while taking the assistance of a software to file returns. It integrates all the user information at one place and fills accordingly in the form. Further, the form is connected to the GSTN’s end and the filing concludes.
- All-time GSTR forms accessibility- You would not have to go through any hassle in order to get any form under GST Act. Each document of the user’s interest is made readily available on the software.
- Compliance rating at ease- As important the aspect of compliance is for the taxpayers under GST, the more sophisticatedly it is performed by the software. The compliance rating is retrieved within no time.
- Accurate calculations and invoice preparations- You wouldn’t have to worry about any error that might have occurred in the invoice. Taking very less time and effort, the software prepares the invoices, even in bulk, in seconds.
- Quick user registration- If you are using GST software to get yourself registered under GST regime, you’d only have to upload the required documents and the rest will be taken care by the software itself.
- Secured and authenticated language- Undoubtedly, the software comes with highly-secured language that avoids mishaps like data theft and corruption of the system.
Run smoothly on GST track
Befriend the technology and its advancements to enjoy a hassle-free and errorless taxation. You can easily play a relentless role in making the nation completely digitalized if you dwell your inputs into inventions like GST credit calculator and software. Moreover, these applications have become fundamental needs of the taxpayers. Be tech-savvy and instead of wasting, let your efforts to build a corruption-free nation count.
Read Also: A complete guide to GST Calculation in India