Tag: GST billing software

  • 16 Best GST Billing Software In India – 2021 | Features & Pricing

    Billing and invoicing are the ultimate stages of closing a transaction in a deal. An invoice is a commercial document that itemizes and records a transaction between a buyer and a seller. Now creating an invoice can be very time-consuming, as one has to write down one’s information and the client’s information, set the currency, indicate the date of the invoice, etc. One needs to make sure that the client’s bills are accurate and generated quickly which again takes a lot of time. So, the process is too lengthy and now to reduce the work, comes the use of the best tool. If you hate invoicing or want to automate the accounting of your business. Then, below we’ve listed the best GST software for billing & accounting to choose from.

    Best GST Billing/Accounting Software:

    How to find the Best GST Billing Software?
    FAQs on GST Billing Software

    List of Best GST Billing Software:

    Zoho Invoice

    Zoho Invoice is an invoicing and online billing software. It is also one of the best free billing software in India. This helps businesses to send automated payment reminders to customers. With Zoho you can create invoices, perform faster payments, and manage projects. Look at the Zoho Product Review.

    Templates In Zoho Invoice

    Features of Zoho Invoice:

    • Customize Your Invoice TemplateThis provides you with fully customizable templates. You can extend the brand from the website to invoices for a professional image.
    • Invoice In Multiple CurrenciesZoho Invoice supports multi-currency. You can bill the customers in the right currency.
    • Communicate In The Customer’s LanguageIt supports 10+ languages. You can Invoice customers in their language for effective communication.
    • Schedule InvoicesZoho helps you in scheduling invoices and automatically sends it to customers on your chosen date.
    • Customize Invoice FieldYou can add more information on invoices with 30+ custom fields.
    • Automate with workflowsYou can set workflows and get things done automatically. An invoice is created for an amount of more than $1000. Set up a workflow to receive an email.

    Zoho Invoice Pricing Plans

    Plans Pricing
    Free Trial Available
    Basic $9 per organization/Month
    Standard $19 per organization/Month
    Professional $29 per organization/Month


    10 Best Billing and Invoicing Software for Your Business
    An invoice is a commercial document that itemizes and records a transactionbetween a buyer and a seller. Now creating an invoice can be verytime-consuming, as one has to write down one’s information and the client’sinformation, set the currency, indicate the date of the invoice, etc. One needsto…


    ProfitBooks

    ProfitBooks is a popular GST accounting software in India. It is a simple and spontaneous accounting software built for growing businesses. This platform has managed to get several businesses.

    GST Billing software
    Manage Your Money With ProfitBooks – Best GST Billing Software

    Using ProfitBooks, you will get to create Invoices, track inventory, manage taxes, and many more. This tool has matured over time and now has a lot of GST-compliant features.

    Features of ProfitBooks:

    ProfitBooks Pricing Plans –

    Plans Pricing
    Professional Plan Rs.5,999/Year
    SMB Plan Rs.8,999/Year
    GST Company Plan Rs.1,999/Month

    QuickBooks

    QuickBooks is a cloud-based accounting solution. This helps to manage expenses, invoices, projects, and more for small to large businesses. It provides a centralized dashboard that enables us to gain insights.

    QuickBooks offers administrations to assign tasks to sales representatives. You can grand access to specific customers and collaborate on projects with the team.

    Dashboard Of QuickBooks – Best GST Billing Software

    Users get to capture digital copies of receipts and sort transactions in the tax category. It helps the managers create custom estimates, maintain recurring payments. And export the generated reports to several formats.

    Features of QuickBooks:

    • Sales overviewThis tool has a sales overview page where you will see your income over time. Also, you can quickly access sales shortcuts.
    • EstimatesYou can create estimates and convert them into invoices that are now easy. You can send estimates using email in a form of documents. However, there is no separate estimate tab. This is something that makes it difficult to view past estimates.
    • Client PortalIt does offer a client portal. This is only for invoices, not for estimates. Users can view, print, save, pay, or ask queries.
    • Bank ReconciliationYou can reconcile bank accounts in QuickBooks and manage a reconciliation report.
    • Accounts PayableWith the plans, you can enter and sort bills easily. Users can create recurring bills. There is a vendor dashboard that shows the total purchase orders, open, overdue, and recently paid bills.
    • ChecksYou can order and print checks directly from the tool itself.

    QuickBook Pricing Plans

    Plans Pricing
    Simple Start $25/Month
    Essential $40/Month
    Plus $70/Month
    Advanced $150/Month

    FreshBooks

    FreshBooks is the biggest name for the invoicing and accounting scene. This was created by Mike McDerment. This tool is supporting over 10 million customers. The company is constantly updating its platform by adding more features. Such as adding user permissions, increasing the number of integrations, and improving navigational issues.

    Billing Software
    FreshBooks Invoicing – Best GST Billing Software

    FreshBooks has stepped out and joined the leagues with other accounting competitors like QuickBooks Online and Wave. FreshBooks is easy to use and has the best customer support. It has a few programs that allow built-in proposals. This software can be good for small businesses.

    Pros of FreshBooks

    • Easy to use
    • Excellent customer service
    • Good mobile apps
    • Well-designed UI
    • Attractive invoice templates
    • Numerous integrations

    Cons of FreshBooks

    • Limited users
    • Expensive monthly cost
    • Limited features

    FreshBooks Pricing Plan

    Plans Pricing
    Lite $15/Month
    Plus $25/Month
    Premium $50/Month

    Tally ERP 9

    Tally ERP 9 is an accounting tool that offers tools to businesses in managing their finances. It can manage many companies in one record. And offer a multi-billing format depending on the service it has. It also supervises the cash flow of business by monitoring payables and receivables.

    Billing Software
    Popular Topics For Tally ERP 9 – Best GST Billing Software

    This provides details of bill payments and records purchases. It also offers you to create customized invoices. The dashboard displays business ratios, while users can access financial reports. It also provides features such as inventory management and HR module.

    Features of Tally ERP 9:

    Tally ERP 9 Pricing Plans –

    Plans Pricing
    Free Trial Available
    Silver $630/Month
    Gold $1,890/Month


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    Vyapar

    Vyapar is a GST billing software. This offers modules for accounting and inventory management for small businesses. This helps you generate GST compliant bills and sharing with customers. It saves bills in the system for future accounting needs. Vyapar helps the GST format bill and invoice to choose from.

    It also contains a tally accounting software format. Vyapar keeps track of stock status in real-time. You can also track inventory quantity and calculate its value with information.

    Features of Vyapar:

    • Quotation – you can generate quotation estimates using this software. You will get to fill your requirements and generate a quote for items. This helps you to convert the estimated need to bills. It makes your business more professional.
    • Order tracking – you can generate and track the sales or purchase orders. This software allows multiple GST sales and purchase order formats. Your business becomes adaptable to the changing vendors.
    • Accounting – you can take full control of the expenditures of the business. You can build a balance sheet to check the efficiency of your business. This software offers you to trace every bill of your business. It records every sale and purchase. It produces tax statements for your transactions.
    • Proof of delivery – This software produces delivery challans and affixes with consignments. It uses delivery challan to generate bills and allows to share among customers and vendors. It supervises acknowledgment documents and checks reviews of customers.

    Vyapar Pricing Plans –

    Plans Pricing
    Mobile Basic Rs.599/- For 15 Months
    Mobile Saver Rs.1399/- For 3 years
    Desktop Basic Rs.1999/-For 15 Months
    Desktop Basic Plus Rs.2499/- For 21 Months
    Desktop Saver Rs.3999/- For 42 Months
    Desktop Lifetime Rs.9999/- For 30 Years

    Invoicely

    Invoicely is a cloud-based invoicing solution for small businesses and freelancers. This tool provides a free plan that offers unlimited invoices. There are already 100,000 customers using this software.

     Best GST Billing Software
    Invoicely Dashboard – Best GST Billing Software

    It brings all the basic functions expected of billing and invoicing. Such as invoice creation, reminders, managing of business accounts, and payment schedules. This software provides easy navigation and operation.

    Features of Invoicely –

    • Most of the free plans usually have limitations to send and receive invoices. But not in Invoicely. Its paid plans are priced are reasonable for more features.
    • This app is easy to use. There is no need to set up. Start by creating an account, add information, assign a URL, and select payment gateway.
    • The software qualities apart from streamlining and billing are to get you paid on time. It gives easy navigation and robust features that translate productivity and efficiency.
    • UI buttons for invoices, dashboards, reports, bills, and settings. This gives you convenient control and view of tasks.

    Invoicely Pricing Plans

    Plans Pricing
    Free Trial Available
    Free Plan Free
    Basic Plan $9.99/Month
    Professional Plan $19.99/Month
    Enterprise Plan 29.99/Month


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    Sleek Bill

    Sleek bill is one of the best GST billing software in India. It is helpful billing software that created invoices. This tool is specially designed for the Indian market. With the sleek interface, you can create and design invoices. It also offers advanced billing features with GST integrations.

    This tool can do GST calculations and backup the data also. The sleek bill will save you time and adapt to the user’s needs. Generate detailed reports and print invoices. This is compatible with small, medium, and large businesses.

    Features of Sleek Bill:

    • Sleek bill helps you with the design of a document that is not provided by any other software
    • The customer’s trust can be boosted with the easy to read invoice templates
    • You can create unlimited purchase orders that can be converted to bills when needed
    • You can also make GST compliant invoices, bill of supply, quote, and much more
    • It provides you smart filters that provide you detailed reports, payment history, and more
    • You can also store your data safely in your PC. It provides backup and restores features also

    Sleek Bill Pricing Plan –

    Plans Pricing
    Free Plan Free
    Offline Premium INR 1,999
    Offline Premium + Inventory INR 3,199
    Online Premium INR 1,999

    ClearTax

    ClearTax is one of the largest tax and financial services software platforms for individuals in India. The software is a big help for tax experts, SMEs, and enterprises with income tax returns. Furthermore, it is also effective while filing GST, e-Invoicing, billing, and more.

    ClearTax serves as connected finances for the Indian taxpayers. The mission of the company is to simplify finances and save money and time for tens of thousands of Indian businesses, businessmen, and other people.

    Features of ClearTax:

    • Powered by cloud-computing
    • Multiple accounts can be integrated easily
    • Invoices can be checked automatically
    • Delivers accurate rates
    • Offers the option to create a master database
    • Helps in easily adding and editing GSTIN
    • Offers the option to add the company’s logo

    ClearTax Pricing Plans –

    ClearTax offers two separate kinds of pricing plans for individuals and self-employed or professionals. Here they are:

    Individuals:

    Plans Pricing
    Salary/House Rent Income Rs 799
    Salary/House Rent Income (Premium) Rs 1499
    Capital Gains Income Rs 2999
    Foreign Income Rs 4999

    Self-Employed and Professionals:

    Plans Pricing
    Professionals and Freelancers Rs 2999
    Security Traders Rs 6999
    Business Rs 6999

    Gen GST

    Gen GST software is a complete GST solution, designed and developed both for desktop and online purposes by SAG Infotech Private Limited. The software helps in filling unlimited returns for unlimited clients.  

    Gen GST can be downloaded by anyone for free or they might also choose to use the GST SaaS service and work on the cloud-powered platform, which is accessible anytime anywhere and provides assistance for GST billing, e-filing & E-way bill purposes to small businesses, and other individuals in India without any hassles.

    Features of Gen GST:

    • Offers integrated e-invoices.
    • Available for desktop as well as online users.
    • Updated with the all-new QRMP scheme feature.
    • Generates invoices for regular and RCM (Reverse Charge Mechanism) dealers.
    • Needs just a single click for the users to pay taxes online.
    • Allows unlimited client e-filing with DSC/EVC (GSTR 1, 3B, 4, 9, 9A, 9c, and more).
    • Helps in easy generation of GST E-Way bill.

    Gen GST Pricing Plans

    Product Installation Pricing Updation Pricing Annually
    Gen GST Desktop Software for E-filing Rs 5000 Rs 2000
    Gen GST Combo (Desktop) for E-Filing, E-Invoicing & E-waybill Rs. 10000 Rs 4000
    Gen E-Invoice (Desktop) Rs 5000 Rs 2000
    Gen E-way Bill (Desktop) Rs 5000 Rs 2000
    Gen E-way Bill and Gen E-Invoice Rs 7000 Rs 3000


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    Busy Accounting Software

    Busy Accounting software is one of the most effective and powerful solutions available in the market for businesses to manage their accounting, inventory, GST billing, e-invoicing, e-way billing requirements, and more!

    Features of Busy:

    • Simple and convenient to use.
    • Flexible and designed to suit diverse business needs.
    • Scalable as per the requirements of the business.
    • Offers in-built GSP features like auto e-way bill, GSTR-2A, E-Invoicing, and more.
    • Offers advanced inventory management.
    • Brings in invoicing solutions that are completely configurable.
    • Also offers an interactive mobile app.

    Busy Accounting Pricing Plan:

    Plans Pricing
    Basic to Standard Rs 7434
    Basic Rs 10620
    Standard Rs 15930
    Busy Infotech Multiuser Rs 33453

    MARG GST Software

    Marg GST software offers a complete GST solution from billing to return filing. This software helps the users create full invoices in GST format and manage all their finances even if they are devoid of deep accounting knowledge. Therefore, with the Marg GST software, both the individuals and the company can reduce the burden of taxes and compliance and continue focusing on running the business.

    Features of MARG GST Software:

    • Faster GST invoices and billing experience
    • Effective accounting experience
    • Offers faster e-invoicing
    • Generates e-way bills without hassles
    • Helps in internal audit
    • Helps in online banking
    • Simplifies digital payments

    MARG GST Software Pricing Plans:

    India and Southeast Asia –

    Plans Pricing
    Basic Edition Rs 8,100
    Silver Edition Rs 12,600
    Gold Edition Rs 25,200

    Other Countries –

    Plans Pricing
    Basic Edition $350
    Silver Edition $600
    Gold Edition $1150

    Go GST

    Go GST is billed as an easy, online, and free lifetime GST software for businesses and individuals. Specially designed for the Indian markets, Go GST is updated with the latest GST changes of the country.

    Features of Go GST:

    • Compliant with the new GST rules and regulations
    • Offers a single-click way to create unlimited products and manage all stocks
    • Offers easy interface to create GST-compliant quotations and proforma invoice
    • Brings in a range of templates and professional designs to create credit and debit notes
    • Recording and tracking of payments made easy with Go GST
    • Offers easy ways to create staff accounts with limited permission

    Go GST Pricing Plans:

    Go GST has two pricing plans –

    • Lifetime Free Plan – This is free for a lifetime, as true as it sounds.
    • Premium Plan – The Premium Plan of Go GST involves a yearly subscription of Rs 1499, inclusive of GST.

    Easy GST

    One of the best billing, accounting, and tax management software in India, Easy GST is GST-ready free accounting software that can help users manage their accounting, inventory, payroll, billing needs, and more. Easy GST software is known for the powerful and easy-to-use accounting features to suit the needs of the users and get complete control of their financials.

    Features of Easy GST –

    • Helps to create invoices without worries
    • Offers effective ways to file GST returns easily
    • Supervises the workforce for Human Resource Management (HRM) solutions
    • Supports international traditional with accurate forex conversions
    • Helps in managing sales-related work empowering Customer Relationship Management (CRM)
    • Enables the users to handle projects separately

    Easy GST Pricing Plans –

    Plans Pricing
    Starter Rs 944
    Intermediate Rs 1180
    Professional Rs 1416
    1 to 25 Companies Rs 5900

    GSTrobo

    GSTrobo emerges as one of the best solutions for technological challenges making GST e-invoice creation, return filing, comparison reports, reconciliation, ledger balances, tax payments a breeze. The web platform of GSTrobo helps the taxpayers to start with GST-compliant e-filing even with little or no knowledge with the help of a quick, secure, and user-friendly platform that it offers.

    GSTrobo Features:

    • Makes 100% GST-compliant invoicing possible
    • Offers smart reporting with interactive dashboard and MIS tools
    • Offers cloud support
    • Enables easy e-way billing operations with ERP integration and the help of a powerful mobile app
    • Brings in easy operations with the help of customized data exchange formats via a mapping tool.
    • Offers advanced ITC Reconciliation Tool

    GSTrobo Pricing Plans –

    GSTrobo offers their invoicing software that is available for multiple users at Rs 3,000 per year.


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    Billing Software India

    If you are looking for easy and powerful GST billing software, then Billing Software India is your answer. It is one of the most powerful software that facilitates easy GST billing options for small businesses, wholesalers, retailers, service providers, and other individuals.

    Billing Software India Features:

    • Offers effective offline desktop application
    • Makes printing multi-sized invoices easier
    • Comes with a barcode scanner for quick billing
    • Makes invoice generation easy with a single click
    • Helps create GST-compliant tax invoices
    • Helps managing client accounts a breeze

    Billing Software India Pricing Plans –

    • Free Edition – Billing Software India comes in a free edition that you can use but that will not comes with an android app nor with some of the advanced features that you might require from time to time.
    • Business Edition – The business edition of the software is a premium edition that comes for Rs 8,000 and which is available at Rs 4,000 on a limited period offer.

    How to find the Best GST Billing Software?

    As every business is different. Everyone has different expectations from the accounting software. But you should check the given points:

    • If the software includes required payroll needs
    • Does the system track available stock, orders, work in progress, and other tasks
    • Check whether there is an option to manage more than one bank account
    • If the software manages foreign exchange
    • There should also be a system to keep records of various departments under one unit
    • The system should provide you an online platform for different activities such as verifying records and online payments
    • If the system manages the record of what customers buy, how much and the tax charged, etc.

    FAQs on GST Billing Software

    Which software is best for GST billing?

    Compiled list of 8 Best GST Billing Software –

    • Zoho Invoice
    • ProfitBooks
    • QuickBooks
    • FreshBooks
    • Tally ERP 9
    • Vyapar
    • Invoicely
    • Sleek Bill

    Is there any free GST billing software?

    Free GST Billing Software are –

    • Invoicely
    • Sleek Bill
    • Zoho Invoice (Free Trial)
    • Vyapar Mobile App (Basic Version)
    • Tally ERP 9 (Free Trial) etc.,

    Conclusion

    Having a business was never an easy task in India. But because of GST, you can start a new business very easily. You don’t need to apply taxes on total value but on just added value. This process gets easier with GST billing software. The businesses with GST registered need to provide GST compliant invoices to the clients.

    There is various software available to get all functionalities. You can find several GST billing software free versions online. It all depends on your budget to decide which software will suit your business.

  • GST Guide: Introduction, Compliance, Updates and Many More

    Goods and Services Tax(GST) has been introduced and implemented in India to reduce the anomalies caused by the previous tax system. GST, or Goods and Services Tax is a tax that customers have to pay when they purchase any goods or services, such as food, clothes, electronics, items of daily needs, transportation, travel, etc.

    The concept of Goods and Services Tax is that it is an Indirect Tax, i.e., this tax is not directly paid by consumers to the government, but is rather levied on the manufacturer or paid by the production centres and the providers of services. The sellers add the tax expense into their costs, and the price the buyers pay is inclusive of GST. Therefore, in most cases, people end up paying a tax even if they are not an income taxpayer.

    GST Guide

    GST is levied on the basis of the destination principle. Exports would be zero-rated, and imports would attract tax in the same way as domestic goods and services.

    Addition to the IGST in respect of the supply of goods, an additional tax of up to 1% has been proposed to be levied by the central government. The revenue from this tax system is to be assigned to the original states. It is proposed to be levied for the first two years or for a longer period, recommended by the GST Council.

    It is predicted that the tax base will be comprehensive, as virtually all goods and services will be taxable, with minimum exemptions. GST would bring in a modern tax system to ensure efficient as well as effective tax administration. It will bring greater transparency and strengthen monitoring, thus making tax evasion difficult.

    It is important for the industry to understand the impact and opportunities offered by this tax reform. GST will have effects on all industries, irrespective of the sector. It will impact the entire value chain of operations, manufacturing, distribution, warehousing, sales and pricing.

    Component analysis of GST Gross Collection
    Component analysis of GST Gross Collection

    Items outside the purview of GST

    There is a set of items which are not covered by GST. The following items are:

    • Alcohol for human consumption is not covered under GST. On alcohol, the authority to tax remains with the states.
    • GST was not imposed on five petroleum products like crude oil, diesel, petrol, natural gas and ATF.
    • The Central Government, along with GST has the power to levy additional excise duty on tobacco products.
    • The authority to decide entertainment tax levied by local bodies remains with the states.
    • Even Electricity is out of the purview of GST.

    Is Goods and Services Tax(GST) better and helpful than the previous tax system?
    The question of which tax system is better is debatable. Before GST wasintroduced, the VAT system was followed in India. GST not only brought anexcellent revolution in the Indian economy and society but also it increased thegovernment revenue. Is GST practically better than the previous tax syste…


    GST Compliance Rating

    The GST compliance rating is a rating given by the government to a business so that other businesses can review how compliant they are with the government tax department. This score will be calculated based on parameters such as timely filing of monthly and annual returns, furnishing details of input credits used, taxes paid, etc.

    These scores will be updated at periodic intervals, and their details will be published in a public domain that all businesses can access. This allows small businesses to choose the most GST-compliant vendor for their business endeavours.

    Under the previous tax system, businesses often delayed filing return and payment of taxes to gain time. Continuing this practice under GST will result in a delay in input tax credit across the chain and severely affect the working capital of businesses. The rating system will prevent the delay of credit for buyers due to the non-compliance of certain persons.

    The Impact of GST on the Indian Economy

    Following are the ways in which GST has a positive impact and will help improve the economy of India.

    Reducing in tax burden for manufacturers which will encourage quality and more productivity. The earlier system of taxation was ill-structured with a magnitude of tax clauses which prevented the manufacturers from providing optimum production, hindering growth. However, GST after implementation will relieve manufacturers from those problems by issuing tax credit to manufacturers.

    All the various tax difficulties that prevailed such as long queues at check posts and toll plazas, resulted in wastage of products which were being transported. A single GST taxation system will surpass all these hurdles and prevent unnecessary wastage which caused huge losses in costs for supplies.

    A common consumer will know how much taxes they are charged and on what grounds, which will pave way for a just and transparent tax system.

    The extension in the tax base under GST will be compounded to the revenue of the government.

    When the taxes are paid by producers for the supply of goods or services, GST will provide a tax credit. This feature will encourage producers in purchasing the raw materials from any of the registered dealers which will eventually gather all the vendors and suppliers under the GST roof.

    Customs duties which were applicable to the export of items will be removed and it will increase the competitiveness of the exporters to be at par with foreign markets.


    Impact of GST on Startups and Small Businesses in India
    GST was implemented in India in July 2017. The GST was meant to replace a slewof indirect taxes with a federated tax. It has impacted almost all Industries,including start-ups. Startups are liable to pay taxes as they cross thethreshold limit are liable to pay GST from the moment they cross the t…


    Benefits of GST

    GST eliminates the cascading effect

    GST is an indirect tax that was designed to bring indirect taxation under one roof. More significantly, it is going to eliminate the cascading effect of tax that was evident earlier.

    Composition scheme for small businesses

    Under GST, small businesses (with a turnover of around Rs 20 to 75 lakhs) can benefit as it gives an option to lower taxes by using the Composition scheme. This step has brought down the tax and compliance burden on many small businesses.

    The unorganized sector is regulated under GST

    In the pre-GST period, it was often seen that certain industries in India like construction and textile were largely unregulated and unorganized.

    However, under GST, there are provisions for online compliances and payments, and for availing of input credit only when the supplier has accepted the amount. This has brought in accountability and regulation to the businesses.

    Higher threshold for registration

    In the VAT system, any business with a turnover of more than Rs 5 lakh was liable to pay VAT. Also, note that this limit differed state wise. Under the GST regime, this threshold has been increased to Rs 20 lakh, which exempts many small businesses and service providers.

    Wrap Up

    Change is necessary but definitely never easy. The government is trying to smoothen the path to GST. It is important to take a leaf from global economies that have implemented GST before us, and who overcame the teething troubles to experience the advantages of having a unified tax system and easy input credits.

  • Is GST better than the previous tax system?

    The question of which tax system is better is debatable. Before GST was introduced, the VAT system was followed in India. GST not only brought an excellent revolution in the Indian economy and society but also it increased the government revenue. Is GST practically better than the previous tax system?

    What is GST(Goods and Services Tax)?

    GST is considered as the most economically influential post-independence tax reformation in India as it has redesigned the whole concept of taxation. Being a consumption-based system, it is completely transparent and convenient than the previous tax structures. It has disregarded to society like tax-evasion and corruption on a greater level.

    In a longer period, it did not only brought an amazing boost to the Indian economy and society but also the government revenue increased. It practically removed the main problem of the previous tax system which was cascading effect.

    GST is a value added tax that is collected at every level in the supply chain process. In the earlier indirect tax time, in certain cases, the tax paid on commodities or services were not available for setting off the output tax liability. For example, the excise paid by manufacturers were not available for set-off against VAT.


    Impact of GST on Startups and Small Businesses in India
    GST was implemented in India in July 2017. The GST was meant to replace a slewof indirect taxes with a federated tax. It has impacted almost all Industries,including start-ups. Startups are liable to pay taxes as they cross thethreshold limit are liable to pay GST from the moment they cross the t…


    What is VAT(the previous Tax structure)?

    Most people are accustomed or aware of the VAT system even if they don’t run a firm or business. For instance, if you purchase any product or go to a hotel, in the lower part of the bill, you are likely to see an extra cost in the form of a percentage. This is called the value added tax, VAT.

    VAT is a consumption tax levied on a product at each stage of the supply chain. VAT has been a major reform for India’s tax system when it was introduced around 2005. This change was desperately needed due to issues with India’s previous taxation system, where the cascading effect of taxes had a negative effect.

    Is GST better than VAT


    How To Register For GST online | A Complete Guide For GST Registration Process Online
    If a seller wants to sell across India they need to register for GST. The GST ismeant to replace a slew of indirect taxes with a federated tax. In the GSTRegime, businesses whose turnover exceeds Rs. 40 lakhs* (Rs 10 lakhs for NE andhill states) is required to register as a normal taxable person.…


    Educated Consumer

    Previous tax regime was loaded with multiple taxes at the state level which included VAT, Entertainment Tax, Luxury tax, Taxes on lottery, betting and gambling, State Cesses and Surcharges, Octroi, Entry Tax and purchase tax. Multiple taxes at the central level were also levied which included Central Excise Duty, Additional Excise Duties, Service Tax, and Additional Customs Duty.

    This multitude of levied tax kept the consumers confused and unsure on taxes being charged. Consumers were unable to check or verify the correct levy and payment of taxes, leading to consumers being overcharged on account of false taxes. GST is based on a PAN-India model tax system, consumers have become vigilant before paying taxes. GST being a “ONE NATION ONE TAX”, has helped rationalize and revolutionize the whole economy.

    Reduction in Logistic cost

    A leading logistics company recently said that after the implementation of the E-way bill and GST, heavy transport vehicles i.e. Trucks are covering 10-15% more distance as compared to earlier regime. In earlier regime trucks were hovering around 300-350 km per day, however, after the implementation of GST this distance has increased to 400-410 km per day. This has helped in the reduction of logistics costs. This reduction has brought India at the edge of a logistic revolution.

    Eliminate The Cascading Effect

    Cascading effect is a phenomenon of taxation that puts an extra burden on the end consumer. With the cascading effect in place, the taxes were levied on the value on which the previous buyer has already paid the tax. Thus, GST removed this tax on tax by bringing the concept of input tax credit that can be claimed at every stage by the seller or service providers.

    Simple Online Procedure

    The GST has brought in a new digital era in the Indian taxation system. All the process, right from the registration to the payment of taxes has been made online. This uniform e-registration is a considerable change as compared to the earlier decentralized multiple registration mechanisms.

    Destination-based Taxation

    With the onset of GST, the taxes were charged on the point of consumption, unlike the former tax structure that levied taxes on the place of manufacturing. This change from origin-based tax to destination-based tax has also significantly altered the revenue generation of producer states as well as consumer states.

    Real Estate

    The government has rationalized tax rates in the real estate sector from 12%/8% to 5%/1% also giving one-time option for ongoing projects to adopt the tax scheme. Home investors were forced to pay multiple taxes on real-estate buys in the pre-GST era, and in the post-GST period, they were forced to pay full taxes without benefit of ITC being passed to the consumers.

    Thereby commodities were always overpriced. With this new tax scheme, consumers are ensured that they are bound to pay an amount with a full benefit of Input tax credit flowing to them without any discretion of suppliers.

    The reduced tax burden on Tax Payers

    The tax burden before GST on taxpayer was considerably high. With GST adaption, the tax burden has reduced significantly since all taxes are integrated, and the burden is split equitably between manufacturing and services. Certain taxes became part of the cost. Therefore, with the simple mechanism of GST, the cost burden has reduced by removing such effect and providing credit.

    GST revenue Collection
    GST revenue Collection

    The GST components

    CGST

    Central GST is referred as CGST, applicable on supplies within the state. Tax collected to be shared with the Centre.

    SGST

    State GST is referred as SGST, applicable on supplies within the state, whatever tax collected will be shared to State.

    UTGST

    Union Territory GST is referred as UTGST, applicable on supplies within the union territory.

    IGST

    Integrated GST is applicable on interstate and import transactions. Hence, tax collected is shared between the Centre and State.

    Conclusion

    By implementing GST, the Indian government is looking forward to improving the economy by eliminating the cascading system of tax and controlling corruption in the business processes in India which were possible in the previous tax system.