Goods and Services Tax, also known as GST, has created a commotion among the Indian citizens. The taxation system that will soon replace all the indirect taxes has become one of the most discussed and talked about topics recently. From government discussions on television to household debates, everyone is wrangling about its merits and demerits and waiting for a big economy change in India. As proposed by our Union Finance Minister, Arun Jaitley, the GST will be implemented in India with effect from 1 July, 2017. GST is an amalgamation of numerous indirect taxes such as Value Added Tax, service tax, excise duty, additional custom duty, central sales tax, entertainment tax, luxury tax etc.
Customers purchasing goods have no idea about how much tax they pay for each commodity purchased from the market. With the introduction of GST into Indian commerce, India soon will experience the benefits of anti-profiteering similar to other foreign countries economy system. GST will surely reduce a hefty amount of cost for most of us.
Nevertheless, the government and authorities have taken major step for a smooth administration run once GST is implemented. One of the major steps taken for such development is designing the GST application and software. With the introduction of GST system, collection and payment of taxes will start functioning online which will be a relief from any hard copy errors. Numerous IT companies are developing GST tools in order to benefit the public. Soon enough these tools will be launched. Now, that you have known about GST you might want to know how GST tools will benefit Indian taxpayers.
Here are the top 5 benefits of GST tools.
- No space for errors
Many of us have experienced the demerits of jotting down on hard copies as it has unforeseen disadvantage of errors. The traditional tax system files detail on hard copies that increases the chance of committing errors. But with the full-fledge GST system on roll, every detail of a customer will be noted online. Herein, an adeptly-programmed GST tool can ensure accurate GST calculation in India.
- Time saver
The new tax system which shall be on roll from 1 July will consume less time as compared to the traditional tax system. Evolving with the BJP government motto ‘Digital India’ this is a small step to achieve their goals. An efficient GST application will handle all compliance related functions easily, which will allow taxpayers save most of their time. Hence, it is the time to make a smart move with your smart phones instead of standing in queues.
- Adjoining business and government bodies
An essential role played by a GST tool involves direct communication between businesses and government bodies. Traditional taxation system has a difficult procedure of claiming access to the government bodies. Sometimes this might take up a lot of your time. However, with the introduction of GST tools, the problem will be solved with just a few taps of your finger. Your problems will be acknowledged by the government bodies in no time.
- Strict adherence with regulatory guidelines for invoice generation and/or payment method
With the help of GST tools, the invoice generated and the payment methods will function as per the rules and regulation set by the government bodies. The current invoice format will be replaced by the standard GST format and the guidelines shall be a must follow for every shopkeeper, retailer etc. Furthermore, the payment of taxes on the due date will be automated with the help of GST tool i.e. the headache of forgetting the due date is out of question.
- Compliance Rating
Every company would be rated in GST regime on how compliant they are with various guidelines and regulations specified by the government. Obviously, a compliant company will have better reputation than the company which fails to pay taxes on a timely basis. As a matter of fact, a highly sophisticated GST application can help businesses flourish and improve their reputation as the taxes that have to be paid by a company will be automated and less time consuming.
Once the GST system sets foot on the Indian economy, it will be successful in abolishing central and state tax and shall be an amalgamation of both the tax giving birth to just one single tax. Once the GST system gets imposed, multiple taxes in the Indian commerce will gradually eradicate and the GST calculation in India would be a more simplified process. In short, a smart GST tool would surely help us march towards the goal of “Digital India” quite adroitly.