- GSTR 2A Difficulties: Since the annual GSTR 2A can’t be accessed and must be viewed regularly, it’s been hard to incorporate the returns to the books of accounts with 2A returns. Complying with Rule 36(4) regularly has now become an issue.
- GSTR 3B Obstacles: There is no alteration or amendment facility available for this return form. If any adjustments are required, they must be made within one month, rendering it an interest and liability concern.
- GSTR 1 Intricacies: It’s worth mentioning that the credit/debit note or B2C sales made in the GSTR 1 cannot be changed again, making filing a difficult job.
- Queries faced in filling TRAN 1: There can be problems with the Trans 1 notice in Form 603, which is already sent to everybody by the government, making it difficult for real taxpayers. Since the notice stipulates that all prior documents be accessible, the taxpayer will have to supply the information again, which will be a time-consuming process.
- Issues faced in credit reversal: The credit for sales for which payment was not made to the vendors within 180 days must be reversed. Furthermore, keeping track of these details may add to the organization’s workload.
These were just some of the technical issues faced by the Indian taxpayers currently. Furthermore, there are more GST-related issues faced by the SME sectors that need to be addressed. Here’s a short synopsis of some of the problems faced by business owners concerning the GST:
- GST Compliance: The complexities of the new tax system are still unknown to many SMEs. Switching to an entirely new tax structure necessitates a thorough understanding of the details, which companies currently lack. The majority of them are concerned about filing early returns, but it is necessary to remember that companies must first issue GST-compliant invoices before they can proceed to the filing point.
- Extra Operation costs: To save money, almost all the small businesses in India do not hire tax professionals and choose to pay taxes and file returns on their own. Since it is a completely new framework, they may need professional help to become GST compliant.
- Complex Online Mode: Online GST enforcement, return filing, and payment are all needed. Most small companies lack the technological aspects and resources to comply completely electronically. Small companies will face problems daily, regardless of how far the country has progressed technologically.
- Time Management issues: Managing all the records manually would take a lot of time for any business, no matter how small or large.
- Manual Invoicing: GST-registered taxpayers must create invoices that follow the GST format. An invoice consists of multiple details like the HSN code, GST rates applicable, and other types of GST. As a result, manually adding fields for such data not only takes time and effort on the part of the taxpayer but also raises the chances of making mistakes.
All these problems just show how much a small business can lack when it doesn’t have an automated system to look after all the GST and Accounting needs. A GST software is the perfect match to meet all the dead ends of GST-related problems in no time. There are several ways how a GST-compliant system can help vendors and business owners. Let’s have a look at some of them:
- Invoices that are GST-ready: Taxpayers and accountants can build GST-ready invoices in minutes using the GST Billing system. Taxpayers may customize invoices to fit their brand style guide or use invoice templates generated by a particular GST program.
- Timely reports of ITC match and mismatch: The ITC Match/Mismatch Report allows taxpayers to measure the input tax credit correctly. It allows taxpayers to compare transactions made in the accounting information system with GST invoices submitted by suppliers to the popular portal.
- Automated tax calculation: The available GST rates can be found online, and the tax liability can be calculated automatically. It allows taxpayers to correctly calculate the tax due and prevent mistakes in tax estimation, allowing them to pay their taxes on time.
- Security of data and Privacy: One of the most important characteristics of a good GST system is data security. The data on customers and vendors is highly useful. There have been instances where such information has been misused, resulting in losses of resources, and other assets.
- Cost-effectiveness: The price of the GST compliance system is another significant factor to consider when making a purchase decision for GST software. The online system is available for a reasonably low subscription fee, and each license allows for either single or multiple users.
Apart from these factors, a digitalized GST system offers the feature of cloud-based accounting too. It not only reduces the stress of storing unnecessary data but also handles all the tasks in a single go. The GST Accounting system’s integration with third-party applications makes it the best application for handling all of the accounting and business data.