Anatomy of GST for Leveraging Business Processes

The advent of GST has changed the ways in which businesses across India will operate. With the aim to tap tax evasion and prevent loss of revenue to the government, a set of compliances have been introduced which includes filing of monthly returns, quarterly returns and annual returns based on the kind of business one operates.

For smooth functioning of the filing process along with keeping a constant tab on the tax collection, the government heavily relies on the GST Network (GSTN). GSTN is the centerpiece where all filings take place but the data can come in multiple forms. A taxpayer may upload the data directly to the government portal, use the offline utility to create a JSON file for filing or use an Application Service Provider (ASPs) to push data directly to the GSTN. While the first two approaches would work for a small business, businesses with large number of invoices will need some innovative solution built by ASPs to make this return filing process easy. ASPs connect with the GST Suvidha Providers (GSPs) to push the data to GST Network. GSPs are just a pass through layer but important from GSTN perspective to distribute the huge load.

While the systems are still evolving at all ends – GSTN, GSPs and ASPs, using these software will help the taxpayers. Let us look at some of the benefits that these solutions can add:

Validations: Validations are run to check for any errors in the data uploaded while filing returns based on specific criterias like validations are run for GSTINs, invoice numbers, values inserted etc. so that the return is not prevented from being faulty owing to trivial errors. Applications will add value by easily explaining the errors to taxpayers.

Reconciliation: Reconciliations are run for comparing data filed by the suppliers and recipients to avoid any missing of data and also smoothen the process for claiming ITC along with aiding in keeping a tab on evasion of revenues.

Real time uploads: Huge amount of data are uploaded in minutes to avoid delay in filing of returns.

Filing for multiple businesses: Organizations operating multiple businesses can file returns quickly for all the businesses in only a few steps.

Set off of liabilities: Payment of liabilities by setting off available input tax credits can be done with click of only a few buttons and electronic payment of balance liability by generating an e-challan has made the payment process quicker thus aiding in avoidance of late fees and interest.

Press release and Notifications: The users are up to date with any changes and information since press release and notifications are now available online and users can be updated real time.

Online facilities: Various facilities like registration, cancellations, payment of taxes, seeking refunds, availability of notifications and circulars, access to various acts, communication using the online helpline tools etc. are available which helps in preventing excess of paperwork and usage of time.

Usage of technology aiding an increase in transparency and with more taxpayers joining the net, we expect a positive growth and smoother functioning of businesses.

About the author: Keyur Shah is the Co-founder & Business Head of SahiGST. SahiGST is one of India’s premier GST filing & reconciliation software. Suchi Gandhi also contributed to this post.