GST and Taxation for MSMEs:
Since the launch of July 2017, Goods & Service Tax (GST) has been the most important factor for government and businesses with many changes being introduced recently. GST for Indian economy has been an evolving process and has brought advantages for small businesses in many ways by reducing complexities of inter-state taxation, digitization of MSMEs and an online portal for registration, filing and compliance purpose to make indirect taxation convenient and simple in India. There are about 13 million GST payers, out of which, 6-7 million are B2B, and 5-6 million are B2C. India’s MSME sector contributes about 8 per cent of India’s GDP, 45 per cent of the manufacturing output, 40 per cent of the exports, and 40 per cent of the total workforce.
With the advent of GST, the demand for accounting software surged and also a new category emerged: GST accounting mobile apps to tap into the growing mobile users and millions of micro and small entrepreneurs who would be falling under GST ambit would require a proper digital GST invoicing and accounting solution. Since, smartphones are quite a popular gadget found with almost every person nowadays, people are quite passionate about doing most of the work over the phone. This habit has been taken into consideration by new innovators to develop GST filing mobile application, which is available on Android, IOS and desktop too, that can be downloaded from their website.
Even today, a large proportion of businesses use paper and pen to make bills. They do not understand what’s happening in their business, such as profits, receivables, stock adjustments, etc. They are so much dependent on their chartered accountants and find the use of accounting software complex that require training. In today’s day and age, it is imperative that Indian MSMEs should go digital. Using simple applications to manage billing, stock inventory, receivables, and payables help Indian MSMEs stay on top of their business. Further, filing GST is tedious for MSMEs if they don’t have a digital solution, as they end up wasting time in compliance work.
Advantages for SMBs and Startups
Accounting applications have tried to bridge the gap by making invoicing process digital and easier enabling the business owners to make invoices and do the accounting and view business online. They use terminology which is not accounting-based but as used in daily business life so that one with limited accounting knowledge can also be able to use. These companies provide very active customer support for solving their queries on a daily basis.
Such fully GST-compatible applications make taxes less taxing for small businesses. They help in creating GST-compliant invoicing for regular and composite dealers. They help filing of most accurate GSTR-1, GSTR-3B and GSTR-4 without any hassles and also generate e-way bills as per your business needs. These accounting applications are available on mobile and desktop enabling the business owner to synchronise their data between multiple devices such as mobile and desktop. New businesses have switched to GST filing applications for multiple reasons, below are few of them:
Less time-consuming– The speed of the mobile apps is quick; hence the documents are uploaded in no time.
User friendly– The applications involves fewer hassles in comparison to manual filings.
Easy to understand– The navigation of apps is up to mark. Hence it offers a quick understanding of the filing process to the new users.
Cost-effective – The accounting applications come at a very economical cost for the SMBs as compared to accounting software and also with GST reports. Filing on portal helps in reducing accounting and compliance costs for them.
Automated – The automatic reports are generated, giving the taxpayer ease to understand and curate the business operations.
Easy to keep record– The mobile applications log every moment of the taxpayer, saving the document safe and easily accessible.
Regular updates– The application send daily notifications and updates to the user to ensure the timely filing of GST returns.
Videos– Mobile App has videos of the filing process, which can be seen and learned in a hassle-free manner.
Availability of HSN and SAC code– These codes are required while filing tax returns as per the annual turnover of the firm.
GST accounting applications have helped in the transition of many small businesses in an easier and cost-effective manner to a new indirect tax system and also making them organised in terms of their bookkeeping. Hence, to keep up with digitalization, it is vital to switch to more straightforward solutions like applications. These applications help in collecting payments timely, management of business finances, keeping track of your business inventory, and generating GST reports. The mobile apps also help in keeping a tab on the taxpayers to prevent tax evasion.