Digitalization has Made It Easier To Maintain Bills and Invoices

Digitalization in Maintain Bills and Invoices

Implementation of Goods and Services tax was one of the most significant changes India has seen in recent years. The magnitude of effect GST was going to have with its launch, and the rapid adaptation it needed from every taxpayer was an enormous challenge. Without cutting edge technology, this was not possible. To address this, GSTN came into being. GSTN – Goods and Services Tax Network is the back end technology that handles the complex task of catering to millions of taxpayers/businesses every day.

It is a digital network that is basically of two parts. The front end of it is the GST portal that handles all the tasks related to taxpayers. The back end is the sophisticated digital technology that keeps the network up and running without any downtime. GST portal has started to provide GST billing software to MSMEs with a turnover of up to Rs. 1.5 crore that is going to benefit around 80 lakh small businesses. Through this software, small businesses can file their GST annual return, manage inventory, create invoices, and other essential tasks.

Apart from the GST billing software provided by the GST portal, there is a lot of different software in the market you can choose depending on your preference. Vyapar, ProfitBooks, Khatabook, Zoho books are some of the popular software options available in the market. The use of the new software and the digitalization of the tax system has created a speed in doing business. 

Digitalization in Maintain Bills and Invoices

Source: economictimes.com

Digitization of GST

GSTN is responsible for the digitizing tax system in India. The government awarded the contract worth Rs. 1,380 crore to build GSTN to Infosys to maintain and run the new tax system. GSTN was not just necessary for the implementation of GST, but it was also part of the digital India campaign that the government is trying to implement.

It is a campaign launched by the Indian government to ensure the services that are provided by the government are accessible to citizens electronically. By enhancing the online infrastructure and by empowering government services with digital technology, the government wants to offer its services quickly and securely. The plan to implement this is by providing internet connectivity across the country.

Ease and Efficiency Through Digitization

In the previous tax system, things would move at snail speed, and it was very tiresome to pay taxes or to file returns. A significant change has happened after the digitalization of the tax system. Creating an invoice has become as easy as sending an email or browsing a simple website. All a taxpayer needs to do is enter correct values in a GST billing software, and an invoice automatically generates.

Digitization has also helped taxpayers and businesses to move away from painstakingly maintaining every bill in a physical form. With digital technology, companies can now manage every bill and invoice online. It also helps with the efficiency of business because an electronic invoice can be generated digitally and accessed from anywhere. 

There is an excellent efficiency in doing business now with digitalization because it is quick and simple, which saves a lot of time and effort. Under GST, it is mandatory to file taxes thrice every month for some businesses, and without digitalization, it would have been impossible. Especially for large companies, digitalization has worked wonders. One of the ways to maintain and addresses taxes and bills is through ERP.

Enterprise Resource Planning or ERP is a business management software that helps in keeping everything organized. It also helps in integrating different applications to manage and automate business. By integrating GST related solutions into ERP, a large enterprise can create a robust automated system that helps in making a company stay GST compliant. 

With the digitalization of GST, companies can now synchronize data from ERP and convert it into GST supported format. With this uploading invoice details, correcting minor billing mismatches and even filing GST can be done automatically. Big companies have to deal with millions of invoices, and mismatches are bound to happen. Also, maintaining and keeping track of all those invoices will be impossible without proper software. A GST integrated ERP or software not only helps in taking care of mismatches but also helps in keeping track of invoices and help businesses function efficiently.

Digitalization in Maintain Bills and Invoices

Source: hdnux.com

Though digitization has made complex GST system simple and maintaining and invoicing of bills is a pretty easy task now, there should be few things you should consider before choosing software to handle GST related issues. First and foremost, you should select software that is rated highest in terms of security. By filing taxes or generating invoices, you are dealing with sensitive and confidential data that could be detrimental for your business, and protecting your data should be your top priority to safeguard your business.

It would help if you also considered choosing a software that is flexible in integrating with any software that already exists in your system. If you have a large company, then it is of utmost importance that you focus on GST software that can integrate easily into your existing billing system. There should be an overall look at the features such as invoicing matching, auto-generation of filing taxes, and bookkeeping. Good software will help benefit fully well with the digitization of GST and make handling taxes simple.

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What’s New in Digitizing GST

Recently GST e-invoice generation system has been taken into consideration to reduce GST evasion. This system will apply to businesses whose turnover threshold is above the set limit. The government has made GST e-invoicing mandatory from 1st April for companies whose turnover is 500 crore or more. There is an expectation that with the GST e-invoice generation system, the manual involvement in checking and filing will reduce. 

Digitalization in Maintain Bills and Invoices

Source: cenabiznesu.pl

Conclusion 

The vast availability of GST billing software has taken the digitization of filing taxes to the next level. It has made tasks like filing of GST annual return to auto-generated invoice more simple. There are new technologies that are going to evolve in making tax management more comfortable, and there could be more focus on the automation of handling tax-related issues.