Why GST Exemption on Goods is a Bad Idea?Is GST exemption on goods a good idea? The ongoing economic crisis due to the COVID-19 pandemic has been extremely devastating. The government has announced various relief measures and relaxations to fight the Impact of GST on the Indian economy due to Coronavirus. The Government of India (GOI) and Reserve Bank of India (RBI) are providing cash dole, incentives, and monetary policy support to needy citizens.

Industrialists in India are praying for the crisis to come to an end. Various business sectors have been demanding the GST council to provide exemption on goods and service tax (GST) rates. Especially on products that are in high demand amid advancing situations. Examples include Personal Protection Equipment (PPE), ventilators, COVID-19 text kits, sanitizers, etc.

GST Exemption on the finished goods is never a good idea. It deforms the value chain. Although it may not reduce the costs, it can hurt domestic businesses. In this article, you will learn why the GST exemption on goods is a bad idea.

GST Exemption on Goods: What Does it Mean?

Not all goods are taxable under GST law. Several products that are not taxable are eligible for GST exemption. However, exemption rules are liable to reform periodically.

There is a wide range of reasons for exemption on goods under GST rules. For instance, GST exemption on goods is appliable if businesses are zero rates, GST exempt, non-GST supply, or nil rated.

GST rates do not imply on unfinished goods like raw silk, unprocessed groceries, etc. In contrast to the same, finished products such as processed groceries or readymade silk apparels are taxable under the GST rule. Although the government has announced a GST exemption on goods, it is monitored and followed according to the GST council’s recommendations.

Reasons Why GST Exemption on Goods Is a Bad Idea

The government of India has implemented a GST exemption on goods through official notifications. It is deemed to be issued in the public interest.

Pros of GST Exemption

The government took a sensible call on initially fighting COVID-19 by providing GST exemption on Basic Customs Duty (BCD) and health tax till 30th September. The exemption offers security to the domestic manufacturers of goods such as PPE, test kits, and other necessary products.

Cons of GST Exemption

The claims for the GST exemption should be examined concerning domestically manufactured products. The duty structure on these items range from 5% – 12% on ventilators, masks, and PPE depending on the product’s value. And the GST rate for sanitizers ranges up to 18%.

The GST rates seek value-added charges at every stage of production, with the tax credit paid earlier in the chain to offset the tax at a later stage.

Usually, when an exemption is requested on the final product, the tax paid at various earlier stages of the manufacturing chain is linked to the product. The exemption avoids the possibility of compensating these taxes. It subsequently adds costs to the final products.

By trying not to apply GST to the final product, the manufactures will have to bear the unused credit burden. The absence of any cost reduction or input GST rates has left manufacturers with no options to reduce the cost of the inputs of the final product.

Besides, the burden of compliance, separate accounts should be kept for the inputs used in the manufacture of exempt goods. If not, it would be necessary to reverse the tax credit on the inputs used in manufacturing the exempt products. Any such exemption would make imports cheaper.

Domestic manufacturers’ protection in the form of the Integrated Goods and Services Tax (IGST) is applied on imports at a consistent GST rate. Since the BCD is equal to zero, it has been effectively eliminated, making the imports cheaper. The results of the same hurt domestic manufacturers. Neither the public interest nor the manufacturers will benefit from this exemption.

Conclusion

In a nutshell, the general axiom, simultaneous exemption of BCD, and GST should not be allowed, except for exceptional cases. Currently, the economic situation in the country is picking up. The Central Board of Indirect Taxes and Customs (CBIC) should ensure that all monies owed to manufacturers and importers are recovered.

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5 Reasons why Imprezz integration with Tally will help GST AccountingIntegrating business data can be a tedious task for accountants and businesses. Amid the cut-throat competition, it is difficult for business owners to focus on compact details of GST accounting aspects. However, maintaining adequate financial reports, records and functionalities are vital for businesses to drive productivity.

Modern businesses in India rely on technology for automation of GST compliance and other business operations. Enterprises need to have the right system in hand. Otherwise, they will be subjected to limitless challenges and responsibilities that can never be accomplished manually.

Businesses need to manage various bookkeeping tasks alongside managing business operations. With Imprezz integration with Tally, you can seamlessly manage all your GST accounting tasks.

In this article, you will learn five reasons why Imprezz integration with Tally will help GST accounting.

Imprezz Accounting Software Integration – GST Accounting

Imprezz integration with Tally is a popular cloud-based accounting software recommended by most business entities in India. It is known for its accounting credibility and applications. Imprezz, the best accounting software for small businesses is rated among the finest cloud-based tax calculators in India.

Business owners who use Tally software, struggle with GST compliance. You will have to download the data each time to file two GST returns monthly. Rid of the GST accounting hassles. Imprezz integration with Tally effectively manages GST accounting and compliance in just a few clicks.

Benefits of Imprezz GST Accounting Software – Tally Integration

Imprezz not only pays attention to tax compliance but also manages other value-added accounting functions. Here’s how Imprezz integration with Tally helps in GST accounting.

Other Benefits of Imprezz Integration with Tally

Likewise, Imprezz GST billing software is a useful asset for managing various accounting operations. It is preferred by small enterprises, accountants, and solopreneurs. It is an efficient accounting management system. It operates in alignment with GST rules.

Imprezz.in prioritizes and manages funds in and out of the budget consistent with the long-term objectives and missions.

Conclusion

Imprezz integration with Tally enables seamless integration of accounting operations. It provides efficient and streamlined solutions for most complex business functionalities. It includes a complete set of controls that meet the needs of small and large businesses.

Imprezz integrated GST accounting software, enables small business owners to access and work with financial data regardless of location and time.

Imprezz accounting software provides the perfect blend of flexibility and control over business processes and functions while keeping it simple. We offer a 14 days free trial software program for small businesses in India. Start your tally accounting today!

What is Accounting Standards?Accounting is a comprehensive process of recording transactions. It portrays financial data that help readers draw conclusions and make business decisions. Accounting procedures are incorporated with standardized guidelines for disciplined execution. These guidelines are usually known as accounting policies.

Standardized accounting policies allow companies to make alterations according to their substantial needs. However, the freedom to alter makes it impossible to compare in any means. Thus, the government sets specific standards to create an ideal system in place, and this concept is known as the accounting standard.

The accounting standards in India are formulated by ICAI – Institute of Chartered Accountants of India. In this article, we have coupled everything you ought to know about accounting standards.

Indian Accounting Standards – Definition

Indian accounting standard (Ind-AS) is the accounting standard incorporated by business entities in India. These standards are supervised by the Accounting Standards Board (ASB) since the year 1977. ASB is a committee that comes under ICAI. It is represented by the government department, academicians, namely ICAI, CII, FICCI, ASSOCHAM, and other professional bodies.

Accounting standards in India strive to combat major financial issues. It includes:

Ind-As features the naming and numbering of International Financial Reporting Standards (IFRS). Income Computation and Disclosure Standards (ICDS) is the standardized tax computation in India, implemented in 2015. In India, the Ministry of Corporate Affairs (MCA) lays out detailed standards for corporate companies concerning the recommendations of the National Financial Reporting Authority (NFRA).

Objectives of Accounting Standards

Accounting is one of the mainstream functions of business operations – it is the language art of businesses. The standards help individuals understand the financial position of the company. In the case of accounting, the standardized rules are similar to the literature rules.

The framework and regulations of accounting differ from one country to another. Here are some of the vital objectives of Accounting standards in India.

Objective – 1

The Ind-AS mainly aims to enhance the definitive financial statements. The objective is to ensure that financial statements are formulated as per the accounting standards. It enables easy understanding and helps individuals rely on them. Doing so rids of the dire consequences for businesses.

Objective – 2

The second main objective is comparability. Adhering to the criteria allows a streamlined comparison between companies. It helps verify the progress and positioning of the company in the market.

Objective – 3

Accounting standard executes a one set of accounting policies. It is a combination of necessary disclosure requirements and valuation methods of numerous financial transactions.

Benefits of Accounting Standards – Why Ind-AS?

Ind-As provides a wide range of benefits to corporate entities. Here are some of the critical benefits of accounting standards in India.

Uniformed Accounting

The set of rules under the accounting standard ensures standardized treatment of transaction records. It provides standard format produce for financial statements. It helps carry out unified accounting.

Acceptability

Ind-AS is widely accepted as it intersects with IFRS. It enables the user to access the financial statements confidently. It also helps MNC’s save costs as they can use the same set of rules globally.

Readability

Most stakeholders and investors rely on financial statements for information. It is what enables them to make smarter business decisions. Thus, it is crucial to provide a clear and precise financial statement. The set of rules under AS ensure that these statements are accurate and factual.

Comparability

The accounting standard provides comparability. Every business firm functions under the same standardized rules in India. It enables business owners to compare their financial positions before competitors and make comprehensive decisions.

Changes in AS Concerning the Economic Situations

Economic situations in a developing country are more likely to fluctuate. Under any inflated economic circumstances, the Ind-AS principles provide room for modifications. “Financial Reporting in Hyper-inflammatory Economies” under Ind AS -29 helps deal with any escalated economic situation.

Foreign Investments

Adopting Ind-AS helps attract foreign investors. It provides them the opportunity to compare before investing.

Rids of Fraudulent Accounting and Manipulations

The accounting standard specifies uniformed rules that are mandatory for all corporate companies. Management cannot misrepresent financial data as the methodologies and principles are streamlined. It rids of any fraudulent outcome for businesses.

Compliance Under Accounting Standards – ICAI

Under the Companies Act, 1956, subsection 3(A) to 211 demands each P/L (Profit and Loss) account and balance sheet to be complied as per the accounting standards. The Compliance specified under accounting standards is recommended by ICAI, which is prescribed by the Central Government and consulted with NAC (National advisory committee) under section 210(1) of the companies Act 1956.

One of the easiest ways to rids of compliance risks is to adopt an accounting software. Imprezz.in, the best accounting software in India, enables you to audit financial statements as per the notified accounting standards. Automate compliance procedures with a click of a button.

Applicability of Indian Accounting Standards

Indian standards on auditing apply to specific categories of companies as set out below:

Mandatory Requirement

Companies must follow the Ind-AS for the 2015-2016 fiscal year. For the financial year 2018-19, below is the maximum limit for companies that must follow the Ind-AS:

Non-Bank Financial Companies (NBFC)

Accounting standards apply to NBFC’s with a net worth above Rs 500 million. It can be holding companies, subsidiaries, joint ventures, or associates of companies under NBFC’s.

Accounting standards apply to shares, or debt securities listed or in the process of listing on any stock exchange in India/outside India. It applies to companies with a net worth of less than Rs. 500 crores.

And for NBFC’s, that are unlisted companies, with a net worth between Rs. 250 crores – Rs. 500 crores. It can either be the holding companies, subsidiaries, joint ventures, or associates of companies under NBFC’s.

Voluntary Applicability

According to this applicability rule, the companies can voluntarily apply Indian Accounting Standards (Ind AS).

The requirement to Follow AS

Corporate entities are required to follow the Accounting Standard (Ind-AS as applicable). They can formulate the notified rules while preparing their financial statements under section 129 of the Companies Act 2013.

In a Conflict Between the Companies Act and Indian Accounting Standards

The provision of the act prevails in case of any inconsistency or conflict between Companies Act and Ind-AS.

List of Accounting Standards – Mandatory

ICAI and corporate standard rules,2006 issue the accounting standards in India, notified by the Ministry of Corporate Affairs (MCA). The standardized rules are followed by businesses and auditors while preparing and reviewing financial statements along with the stakeholders. Here’s a comprehensive summary of the accounting standards list.

Policies Related to Accounting Disclosure (AS 1)

AS-1 deals with the disclosure of the vital accounting policies used in the composition and execution of the financial statements.

Stock Valuation (AS 2)

AS-2 determines the values of the inventories included in the financial statements. It also determines the ascertain inventory costs and write-offs of the same on the net realizable value.

Cash Flow Statements (AS 3)

AS-3 deals with historical changes in the entity’s cash and its cash equivalents. It is carried out with the help of a Cash Flow Statement. The statement classifies the cash flow of operations, inventories, and other financial activities.

Uncertainties and Events That Occur After the Balance Sheet Date (AS 4)

AS-4 addresses the treatment of uncertainties and events that occur after the balance sheet date.

Net Profit/Loss for the Period, Previous Period Items and Changes in Accounting Policies (AS 5)

AS-5 is applied by the companies while executing P/L results from activities in the ordinary course of business, extraordinary items, and previous period items. It includes the changes in accounting estimates and policies.

Construction Contracts (AS 7)

AS-7 describes the standardized rules for construction contracts in the financial statements of contractors.

Revenue Recognition (AS 9)

AS-9 deals with revenue recognition in the P/L account of the company. Generally, it is concerned with the revenue generated from the business operations such as selling goods, providing services, interest, royalties, and dividends of the company.

The property, Plant, and Equipment (AS 10)

The objective of AS-10 is to describe PPE’s (property, plant, and equipment) accounting treatment.

Effects of Changes in Foreign Exchange Rates (AS 11)

AS-11 sets out the accounting principles for foreign exchange transactions and overseas operations. It determines the exchange rates be used and helps recognize the financial impact of exchange rate fluctuations.

Government Scholarships (AS 12)

AS-12 deals with accounting concerning government grants. These are sometimes referred to as subsidies, cash incentives, rate defects, etc.

Investment Accounting (AS 13)

AS-13 addresses the standardized rules for investments in corporate financial statements and disclosure requirements related to it.

Merger Accounting (AS 14)

AS-14 deals with the accounting for mergers and the treatment of any resulting goodwill or reserves.

Employee Benefits (AS 15)

AS-15 describes the accounting treatment and disclosure of employee benefits in the business owner’s books, excluding payments based on employee shares. It does not deal with accounting and reporting through employee benefit plans.

Borrowing Costs (AS 16)

AS-16 should be applied in accounting for borrowing costs. It does not address the actual or assumed cost of capital, including the preferred capital stock that is not classified as a liability.

Reporting on Financial Sectors (AS 17)

The objective of AS 17 is to establish principles to report financial information for different sectors, products, services, and projects that it produces and the various geographic regions in which it operates.

Disclosure of Transactions with Related Parties (AS 18)

AS-18 is applied while reporting related party transactions between the reporting organizations. The standardized rules apply to each reporting entity’s financial statements and the integrated financial statements executed by a holding company.

Accounting Policies and Disclosure of Lease Transactions (AS 19)

The objective of AS-19 is to define accounting policies and appropriate disclosures related to financial and operating leases.

Earnings Per Share/ Per Share Earnings (AS 20)

AS-20 defines accounting principles that help determine and execute earnings per share. It ensures the improvement of the performance comparison between different organizations. It identifies the per-share earnings for the same accounting period and between different accounting periods for the same organization.

Preparation and Presentation of Consolidated Financial Statements (AS 21)

The objective of AS-21 is to establish accounting principles and procedures that help compose and present consolidates financial statements. It aims at executing economic resources controlled by the organization along with the group’s commitments and the results they achieve with its support.

Income Tax Accounting (AS 22)

The taxable income significantly varies from the income shown in the financial statements. It arises due to various problems in tax reconciliation with income for a specified period. AS-22 aims are to describe the accounting treatment for income taxes.

Accounting for Investments in Associates (AS 23)

AS-23 deals with the standardized rules for investments in associates while investors prepare and present the CFS (Consolidates Financial Statement).

Operations Stops (AS 24)

AS-24 strives to establish accounting principles concerning the reports on discontinued operations. It enables users to estimate cash flow, potential earnings, and enterprise financial position through financial statements. It bifurcates the data on discontinued operations from that of on-going activities. The standardized rules apply solely to the discontinued operations of the company.

Interim Financial Information (AS 25)

AS-25 applies when an entity is obligated or elects to establish an interim financial report. This standard’s primary agenda is to define the content of a temporary financial report in a minimalist manner. The standardized rules of AS-25 also describe the principles of recognition and measurement of the financial statements of the interim period.

Intangible Assets (AS 26)

AS-26 describes the accounting treatment for intangible assets. These assets are also known as nonmonetary assets. They are identified and held to produce or supply goods and services.

Joint Ventures that Announce Their Interest in the Financial Statements (AS 27)

AS-27 aims to establish accounting principles and procedures for joint ventures that report their interests in financial statement expenses, risk assets, revenues, and liabilities of corporate entities and investors.

Impairment of Assets (AS 28)

AS-28 strives to specify procedures that a company may use to ensure that the recoverable value does not exceed its assets. Any asset carrying value that exceeds the recoverable amount is reported as impairment.

Contingent Liabilities, Assets and Contingent Provisions (AS 29)

AS-29 recognizes the standardized rules and measurement bases applied to provisional and contingent liabilities. The principal objective is to ensure the disclosure of sufficient financial data in financial statements. It enables the users better to understand its nature, costs, and timings. AS-29 strives to create suitable accounting standards for all potential assets.

List of accounting standards – Non-mandatory

ICAI announced the withdrawal of the following accounting standards:

Conclusion

In a nutshell, Indian Accounting Standards (IAS) is developed by ICAI and notified by Companies Rules 2006. Before the formation of Ind AS, IAS governed the corporate entities in India. Globalization has led to a widespread of MNC’s in the markets worldwide.

In such a case, companies in India need to have an aligned financial reporting system in line with global standards to be easily understood by foreign investors. Alongside, ICAI (Institute of Chartered Accountants) has notified 29 – new accounting standards, namely, “Ind-AS.” These standards are executed under the Companies Rules, 2015 of Companies Act, 2013. Ind-AS entirely complies with IFRS, unlike IAS.

Are you struggling with the basic accounting tasks? You are not alone. Business owners need not know everything about accounting. You can easily rely on the cloud-based accounting software to do the job for you.

You can focus on essential business operations by automating the accounting function. Maintain accurate financial statements on Imprezz accounting software.

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Why Government Gave GST Audit Extension and What It Means?India’s government has extended the due dates for filing GST returns and audit reports of financial year – 19 to 30th September 2020. The second GST audit extension was provided to e-way bills until 24th March. The validity of the same expired from 20th March – 15th April.

The government also offered economic reliefs and relaxations on certain compliance disclosures in the tax audit reports. There are several reasons why the government gave a GST audit extension to file GSTR-9, GSTR-9A, GSTR-9B, and GSTR-9C.

The extension of a reasonable period aims to provide justice to the correctness of GST returns filing concerning the state-wise reconciliations. In this article, we have presented some of the valid reasons why GOI (Government of India) has provided a GST audit extension. Further, find out what it means.

GST Annual Returns Filing in India: GST Audit Extension

The implementation of the GST regime in India has been a prominent reform over the decades. Although the government has successfully executed the implications, several issues are yet to be sorted. Initially, the implementation hurt the trade and enterprises due to the GST IT structure’s capacity constraints.

Since GST implementation was not comprehensive, it gradually created a turbulent GST impact on reconciling accounts for corporate and other business entities. It has been continuously affecting the time required for GST and other compliances.

Improper reconciliation statements is one of the prominent reasons for extended litigations. If the government fails to address these issues, it might lead to corruption. Without ideal reconciliation and audit reporting structure, the country might also face revenue issues. Eventually, it can prolong the litigations.

Possible Reasons Why Government Gave GST Audit Extension

GST regime issues can only be boycotted with proper measures, appropriate chances, simplified return filing, and extensions. We have coupled some of the valid reasons why the GST audit extension is needed during the hour amid COVID-19.

Reason – 1

The allotted formats for annual GST returns filing, and GST audits are cumbersome and confusing. Not many business owners in India are familiar with digital business operations and accounting. When the GST portal doesn’t work correctly and provides multiple information from the same data source, it becomes confusing.

Reason – 2

The actual data uploaded while filing monthly GSTR 3B doesn’t match the auto-populated data of GSTR 3B in GSTR 9. There are several technical errors that taxpayers face concerning both inward and outward supplies.

Reason – 3

The portal is vulnerable. The website malfunctions often due to frequent technical glitches. One of the recent technical issues lasted for nearly ten days.

Reason – 4

As and when taxpayers try uploading the GSTR 9C, the website indicates error saying “Received but pending.”

Reason – 5

GST returns filing on the portal is a time-consuming process. It is impossible to download or upload the JSON file in a single attempt. One has to keep trying for long hours to get it done.

Reason – 6

The latest utility GSTR 9C 1.6 was only made available on 1st August 2020. There is a very poor time availability for the taxpayers to file their GST returns and audit reports.

Reason – 7

Receiving OTP from the GST portal is another issue. Taxpayers are unable to receive their OTP’s on their domains. It takes anywhere from two to three hours to receive an OTP through email, which is of no use.

A lot of these issues create frustration and anxiety in taxpayers. The government has notified the GST audit extension to provide relaxations for the taxpayers. Meanwhile, it aims to validate the returns filing system.

GST Audit Extension: What it Means?

The issues in GST returns filing arises from the communications that professionals receive from entities, companies, administration, and other interested parties. The government is striving to fix the possible issues through the eminent office. The government is making reasonable changes to ensure an error-free GST portal with extended due dates.

Conclusion

As of the current GST accounting system in place, it takes at least two days for each filing. The complicated procedure makes it hard to file all the returns within the given deadline. The only way the government could resolve the issue is by extended the due dates to file GST returns and audit reports.

Has the new GST returns filing system left your accountant feeling helpless? Switch to cloud-based accounting software to rid from returns filing procedures. Use Imprezz.in for hassle-free GST invoicing system and returns filing of all forms.

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Special Cases: Goods and Services Tax Invoices Format RelaxationsGoods and Service Tax invoice is a commercial bill of sale issued by the sellers to recipients of products or services. According to section 31 of the CGST Act, it is mandatory to issue tax invoices for any goods or services supplied. The GST law has specified rules as to how a business must issue an invoice. However, there are certain exceptions where the law provides definite relaxations.

The article will provide you a concrete understanding of special cases under which GST e-invoice format relaxations are applicable.

GST Invoice Format Relaxation Under Special Cases

Under the GST Regime, a tax invoice is a crucial document that provides precise information on GST amount, quantities, shipment data, mode of transport, delivery, and payment terms. GST bill of sale is vital for any business owner to avail ITC (Input Tax Credit).

The GST Council of India has ruled out a standardized format for tax invoices. However, rule 46 for tax invoices under GST, has prescribed relaxation for specific special cases. That include:

Format of Tax Invoices for Supply Made by Insurance Companies, Financial Institutions or Banks

When a tax invoice or bill of supply is issued by suppliers such as banks, non-banking institutions, or other financial companies, the following relaxations are provided under rule 46 of GST law.

The relaxations mentioned above are applicable only for the following special cases –

Format of Tax Invoices for Supply Made by (ISD) Input Service Distributor

The format of an ISD credit note is slightly different from that of a regular tax invoice. Here’s what a tax invoice format on ISD supplies must include.

The relaxations mentioned above need not be serially numbered. It is applicable only if an ISD is a –

Tax Invoicing for Common Code Bearers

In case the distributor and recipient have the same PAN code and State code, he can issue a tax invoice or credit/debit note with transferring standard input services to ISD. Any such invoice must contain the following details.

Format of Tax Invoices for Supply Made by (GTA) Goods Transport Agency

A GTA or Goods Transport agency can issue GST invoices as per the specified considerations under Rule 46. However, the supplier must include some additional information which consists of the following pointers.

Format of Tax Invoices for the Supply of Passenger Transport Service

For the supply of Passenger Transport Service, the registered person must issue an invoice that includes ticket details. There are a few exemptions on relaxations provided for the supply of Passenger Transport Services.

However, the tax invoice format must include all the other considerations mentioned under Rule 46 except the two exemptions mentioned above. It can either be issued digitally or physically. A signature may not be required on digital invoices.

What Online Accounting Software Supports Tax Invoice Format Under Rule 46?

The supply of goods and services are chargeable under GST. A GST invoice indicates the time of supply. Thus, businesses need to issue GST compliant invoices.

Imprezz GST billing software enables you to automate invoice processing. The customized, updated invoice templates allow businesses to generate e-invoices under exceptional cases.

Imprezz.in is an all-inclusive, comprehensive invoicing software that supports filing GST compliance in just a few clicks. Businesses can automate e-invoicing GST returns and avail tax credits through our accounting software. Subscribe and ease your financial workflow in no time. Benefit from the accounting solutions and forecasts in the long run.

Conclusion

The government has provided relaxations on GST invoice format under special cases to ease compliance procedures for small businesses in India. Registered enterprises must follow the GST invoice rules and scheme as per the notifications alerted by the GST council.

Is your business eligible for invoice format relaxations? Simplify invoicing with Imprezz.in, the best accounting software for small businesses in India. We offer a 14 days free trial software program. Start tax invoicing today!

Imprez.in Now Launches Import Functionto Rationalize Accounting Solutions.

Imprezz is an all-in-one accounting software for small businesses, freelancers and solopreneurs. The exciting new feature makes it highly integrated. The updated import function on the software aims at simplifying your accounting operations. Imprezz manages everything from your business accounts to taxes and payments. The newly released feature now enables you to import the customer list along with other articles.

Despite being the leading accounting platform, Imprezz strives to bring in new additions to streamline accounting aspects. Sync your customer data in justa few clicks. The import accounting solutions stimulate functionalities to efficiently manage multiple users, locations, transaction data, and inventory workflow.

Read further to know how to import the customer list and other articles on Imprezz.in. In case you want solutions to any accounting problems, you can always reach out to the Imprezz support team. Our experts will guide you through importing your business data in no time successfully.

Import your customer lists directly to imprezz accounting software

Innovation is the soul of any company. At Imprezz, we are determined to focus on what matters the most to our customers. We believe that addressing each accounting detail makes new features come alive. Our uniquely designed features provide comprehensive solutions that integrate various aspects of business accounting, enhancing speed and performance.

Imprezz has successfully integrated a wide range of accounting processes into a single database. Besides being an all-inclusive accounting software, it is customizable and scalable, making accounts management a breeze. Several businesses now bestow their trust in Imprezz for all their accounting needs. And on their request, we have now made import functions exclusively available on our software.

How to Import Customer List on Imprezz.in

The Import feature is a swift way to upload your client’s data into Imprezz.in. It allows you to transfer various articles and customer lists from a wide range of accounting packages available on the software.

Note: In order to quickly upload your client’s data, copy the file into your computer hardware. Even though you work offline to copy the data, your status will be brought online to perform the import tasks. All your import functions are automated.

Here’s a complete guide to importing your customer lists and other articles directly to Imprezz accounting software.

Yes, it’s easy to import a wide range of accounting data on Imprezz. All it requires is a single click of a button. The feature allows you to import Customers, Products, Vendors, Services, Sales Entries, Expenses, Opening Balances, and various other articles. The process of importing any data remains the same. The data uploaded is used to prepopulate invoices and vendor bills. Rid of the multiple procedures of importing files on other accounting software. Automate your import functions onImprezz in just a few clicks.

Save your time by automating the incorporation of business information with imprezz

Key Features of Import Functions on Imprezz.in

The Import function’s key features enable you to automate the incorporation of business information throughout the software. You need not reenter each article individually. It can be a great time saver for business owners.

Key Features of Import Functions on Imprezz.in

About Imprezz.in

Imprezz.in is a cloud-based bookkeeping software, featured concerning demands of its users. It has been helping businesses to expand in a shorter period. Most business owners subscribe to the software as they want all-inclusive accounting software to grow with their business. The software has become a primary choice for small enterprises in India for its built-in operational controls and reports.

Imprezz GST software offers a wide range of accounting operations. It supports features like workflow management, hassle-free GST returns filing, customizable templates, advanced accounting features,auto email, and outstanding management, to name a few. The company aims at providing accounting services that are a mix of easy to use functionalities and GST compliance.

Latest Update in GST Invoice Rules - Covid 19

The government of India has rolled out several tax reliefs and measures, concerning the impact of GST on Indian economy due to COVID-19. The GST council has implemented strict GST Invoice rules to curb tax evasion. E-invoicing GST is compulsory for businesses, starting from 1st October. Find the details of this latest update in the article below.

Mandatory E-Invoicing of GST from 1st October– Updated GST Invoice Rules

The government has advanced towards taking steps to improve tax compliance in the country. E-invoicing GST returns filing is now mandatory for businesses with a threshold limit exceeding RS 500 crores.

Earlier, e-invoicing was compulsory for businesses with a turnover limit above 100 crores. However, it is changed due to the recommendations of panels of the GST (Goods and Service Tax) council.  In turn, the updated GST invoice rules aim to exempt small businesses in India from the implications of tax filing.

The decision was ruled out by the GST Implementation Committee on behalf of the Central Board of Indirect Taxes and Customs (CBIC). Although e-invoicing GST returns is dated to start from 1st October, the QR codes are said to be unavailable. However, businesses can work on it as per the current scheme and relevant notifications released by the government.

The CBIC is striving to improve the existing GST returns filing system. Parameters such as export under GST invoices and e-way bills are likely to be missing in the new model. Thus, the council has assured us to notify the upcoming changes shortly.

E-invoicing GST returns with Imprezz.in

Concerning the ongoing technological transformations, businesses might get hurt if they refuse to adopt digital operations. Implementing the best accounting software for small businesses is the first step towards rightly digitalizing your business. You can not only file returns but reap various other benefits by subscribing to Imprezz. Our online accounting software enables you to create and send invoices that are electrically authenticated by GSTIN.

Get rid of manual data entry, double entries, accuracy checks, proofreading, and other accounting hassles. Implement Imprezz invoicing software to automate your bookkeeping tasks. The standardized GST tax invoice format available on the software enables you to file tax returns with the single click of a button.

Conclusion

In a nutshell, several measures and reliefs are ensured to provide relaxation for businesses during these tough times. The government is continually amending the GST invoice rules to ensure advanced and simpler compliance mechanisms. It is a smart step towards reducing the possibilities of survey/audits, fraud GST invoices, and many such problems.

Taxpayers must generate GST e-invoices and submit them to the Invoice Registration Portal (IRP). To ease filing GST returns, you can implement the best accounting software in India, Imprezz.in. We offer a 14 days free trial software program with updated GST invoice templates. Login to better understand the utilities before purchasing the software.

Importance of Quotations and its impact to your business

Small companies in India may attract more customers if they know how to create a quotation online that works for them. Many company owners are unaware that the manner in which they generate quotations online may cost them money. They don’t follow up on quotations or turn them around quickly enough, resulting in revenue loss.

SME’s encounter a number of financial difficulties, including maintaining a healthy cash flow and turning invoices into payments. Making the quotation generation process automated efficient and professional  may help them  get rid of delayed customer acceptance, right away! Simultaneously, it aids companies in receiving payments more quickly, thus increasing cash flow.

Having a hand in generating quotations that your customers approve may thus make all the difference. Imprezz, India’s best software for quotation management will enable you to automate end-to-end order processing starting from  creation of enticing , professional quotations online, that your customers won’t be able to ignore to converting the quotations into invoices wit a click.

Here in this blog, you will get to know 8 simple tricks of creating professional yet simple quotations that will impress your clients.

 

What is a Quotation?

Before we get into the details of how to make a quotation, let’s just understand what a quotation is all about – A quotation is a document that companies send to their prospective customers to offer their products and services at a set price and terms. Typically, quotes contain a detailed scope of work and also offer an estimate for deliverables.

Unless they are stated as an official part of a contract, quotations are not legally enforceable documents. When a customer accepts a quotation, they are obligated to complete the transaction at the agreed-upon price.

When Should Businesses Send a Quotation?

Clients often request quotations from companies when they want to learn more about the products or services before buying them.

Quotations must be sent within a few hours of the desired time. Customers who are interested in purchasing a certain product seek quotations from multiple companies; the one that responds the quickest, usually wins.

Simultaneously, companies must be able to correctly assess expenses and profit margins. To prevent delivering incorrect sales quotations to your customers, automate your quotation procedures with the help of an online quotation generator, like Imprezz (imprezz.in). Because a quotation is not a legally binding document, do not give exaggerated costs.

How to Make Quotation which Your Clients Accept –8 Simple Steps

A quotation may be in the form of a written document or a spoken suggestion. For companies to land on prospective customers, creating quotations and successfully managing quotation procedures is critical.

You can rapidly land a new business by automating quote procedures. It has the potential to boost overall company growth. Here are eight easy steps to creating a quotation online that customers will accept. A quote may be in the form of a written document or a spoken suggestion. 

  1. Select an Imposing Template

Generating quotations is a journey of discovery. It is more professional and impressive to use a standardized quotation format. You may create detailed quotes and modify specifics using templates that your customers will like.

On an online quotation generator, you may get a variety of sales quote templates. To create sales quotations, most Indian companies utilize bookkeeping or an online accounting software like Imprezz.

You may also use an accounting software to provide estimates. Imprezz has a cloud-based estimating function that allows you to create estimate quotations. You may send it to customers directly through email. Your customers may approve quotations automatically using this feature.

  1. Add Client Information

A comprehensive quotation helps people understand your goods and services better. To make your quotations seem more professional, you should add the following information.

  • Business Name
  • Company Address
  • Contact Number
  • Fax Number (If any)
  • Email Address
  • Contact Name and Title

However, don’t forget to include your contact information in the quote.

  1. Add Quotation Number

When you make quotations online using an accounting software, it creates a number for you automatically. However, the program must provide the ability to change the quotation number if necessary. Imprezz makes it seem so simple.

  1. Enter the Date of Issue

The issue date is the day on which you will submit your quotation to your customer. Because a quotation is typically only valid for a short period, including the “date of issuance” is critical.

You may also indicate whether or not your quotation is accurate. However, if you want, you may prolong or shorten the period specified.

  1. Include Your Products and Services

Under “line items,” list the goods or services you’re quoting. The products, product number, quantity, unit price, and total cost per item should all be described.

Separate the goods and services related to the various phases of a project. It’s also possible to separate labour and material costs. Imprezz provides you with industry-specific quote templates.

The picture below shows the pre-built Imprezz quote templates that are specifically tailored to the various industry kinds.

Prepare a cost breakdown. Include no information that isn’t related to the project. Add the expenses together to get your subtotal. Don’t forget to include any relevant taxes in the total.

  1. Mention the Terms and Conditions

You may indicate potential project modifications by mentioning terms and conditions. As a small company owner, you must clarify the product’s extra costs. Describe the circumstances under which extra charges may be imposed.

Mention how and when you’d want to be compensated for the work. Include payment methods and information. If you anticipate an upfront deposit for the job, let them know ahead of time. You have the option of receiving full payment upon completion or half payment up advance and half payment when the job is finished.

  1. Include Notes

In the notes, you may provide any extra information. It’s a great location to put information like the current time and expected finish date. Summarize the scope of your project, express gratitude for the chance, and inform your customer that you are eager to work with them.

  1. Add Optional Details

It’s possible that you wouldn’t want to provide precise details in your quotations. It is, nevertheless, a good idea to add some optional information. In your quotations, you may include the following components.

  • Purchase Order Number (The one you receive from the client)
  • Discount
  • GSTIN – Your Sales Tax Number
  • Signature

The mailing function of Imprezz.in is shown in the picture below. Once you’ve finished generating a quotation, you may send it to your customer straight from the Imprezz accounting software. Check your quotation’s spelling and grammatical correctness. Check that all of your calculations are correct. You may send the quotation to your customer after you’ve done all of the procedures listed above.

 

How to Format Quotations

There are no legal requirements for how a quotation should be formatted. You may, however, use some basic formatting when generating a quotation online. The majority of companies choose to use quotation forms that are comparable to their invoicing formats.

It’s a win-win scenario if your accounting software allows you to generate quotations and invoices on the same platform.

The image below shows Imprezz.in’s single dashboard feature, which allows you to create standardized quotes, customized quotes, and GST-ready invoices all on the same platform.

 

It is required that you use a template that says “Quotation” or “Quote.” It allows your customer to identify the quote apart from other papers.

The date, quotation number, and client information must all be included at the top. The product information and pricing may then be entered. Always include your company’s contact information at the bottom of the quotation template.

Make sure your quotations are simple to read by using clear fonts and a well-designed layout. Personalize the quotation format by including your business logo. Always keep in mind that your logo should represent your company’s image.

Make sure your quote appears great when printed, even if you’re sending it. A printed record may be desired by certain clients. Check to see whether your quotation will fit on an A4 sheet. If necessary, attach files individually.

You may use an online quotation generator to automate all of your quotation procedures. It makes it simpler to come up with interesting quotes. It also assists you in keeping track of quotations given to customers.

Quotations v/s Proforma Invoices

Understanding the difference between a proforma invoice and a quotation is critical for any company. A proforma invoice is an unofficial document provided to a customer before the final details of the project are confirmed.

A proforma invoice is often used at the same time as a quotation in the sales process. A proforma invoice and a quotation, are designed for distinct reasons. In most cases, a quotation is given to a customer in response to an enquiry. A proforma invoice is issued when a customer wants further information.

In a nutshell, quotations are provided to potential customers, and proforma invoices are issued after the client has made a purchase commitment. Proforma invoices are used when a company cannot issue a real invoice because the sale is still pending.

 

Quick Tips on How to Make Quotation Which Your Clients Accept

  • Create an accurate sales quotation 
  • Send a quotation within 24 hours 
  • Include a quoting engine on your website 
  • Follow up regularly after you’ve sent a quotation
  • Always ask prospective consumers questions and learn from your errors.

 

Advantages of automated Quotations over Manual entry

Request a Quote Immediately

The advantage of using an online quoting tool is that you can get a quote very quickly. It will take some time to manually calculate the quote, and consumers are often in a hurry. Because of the automated process, the quote will be accessible in seconds.

Furthermore, not only will the quotes seem professional, but you will also have documentation of when they were supplied and when the customer viewed them. The most advanced software also shows the status of the quote and whether or not the client has accepted the offer.

 

Accuracy

When manually quoting, it is easy to make a mistake. This involves returning to the beginning and beginning the process all over again. Worse still, you might lose a client. The quickness and precision of an automated quotation will amaze any customer. There is no space for mistake since everything is done automatically.

 

Number of Offers

We can only handle a fixed amount of quote requests each day since we are simply humans. Assume you’ve been assigned a more significant assignment. You’ll have to supply a portion of the quotes late since you don’t have the finances to recruit extra people. This does not offer you a professional look, and the calculating method takes a long time, not to mention having an impact on your potential revenue.

When working with automated software, it doesn’t matter whether you have 2 or 2,000 offers every day. All of the labour may be done by the automated program, and everything will be delivered on time.

 

Report Delivery

You may wish to check at a sales report to see how many customers have sought quotes and how many have accepted them. Manually creating a report requires searching through archives and manually creating graphs and sheets, which might take hours or even days.

When you use automated tools to make a report, you just have to spend a few minutes and click a few times to get a complete analysis of the time period you’ve selected. This will allow you more time to go through the report and make any modifications that are needed in the future.

 

Creating Quotations Made Easier with Imprezz

Managing your finances through spreadsheets can be stressful. It curbs the business accounting workflow. It is vital to have access to all your financial data at your fingertips.

With Imprezz, you can see the summary of quotes in progress. You can see whether it is a draft, sent, accepted, or expired quotation. With Imprezz, it is easy to track your quotes, automate the follow-up procedures, and keep your business on track.

You can automate quotation processes on Imprezz.in. Create a quotation in just a few clicks. Worry no more, send standardized quotes with no hassles.

 

Conclusion

Sales does not have to be a difficult process. Determine your unique selling proposition, set a reasonable price for your product or service, and sell. It’s that simple!

Never go head-to-head with other bidders. Try to figure out what you’ll need to verify your project’s authenticity. Then adjust your margins as needed.

We hope that our detailed advice on how to create a quote that your customer accepts has been of use to you.

Do you want to automate your bookkeeping chores using accounting software? Imprezz.in allows you to quickly create quotes. For small companies in India, we provide a 14-day free trial software package. Begin immediately!

How to Select the Best Accounting Software

Tracking transactions is vital for any business to succeed in the near future. Enterprises require the best accounting software to record income and expenses precisely. Today’s advanced invoicing software also enables business owners to file GST compliance in just a few clicks.

Accounting software for small businesses enables you to accomplish the daily accounting tasks. It effectively records payments, invoice customers, track expenses, reconcile transactions, and much more.

GST invoice software provides insights and invoicing solutions that stimulate your business performance from multiple dimensions. You can better focus on other growth aspects of your business by automating your bookkeeping tasks. But selecting the best billing software for your business can be challenging.

There are various options for accounting software available in the market today. Each one of them offers different features and pricing plans. To avoid any sort of confusion, you need to filter all the criteria.

In this article, we have coupled a list of key considerations that might help you invest in India’s best accounting software.

Important Factors of the Best Accounting Software

1. Online Accounting or Offline Accounting

As a business owner, you must first decide whether your business requires online accounting software or an essential desktop-based, offline software. It entirely depends on your business requirements.

Few businesses prefer online/cloud accounting software for effective automation. They offer several competitive advantages over traditional offline accounting software. In contrast, companies that mostly operate without connectivity can opt an offline software such as POS (Point of Sale).

Why Does Your Business Require a Cloud-Based Accounting Software?

Small businesses in India struggle with the cut-throat competition out there. Business owners must be able to focus on other managerial tasks. A cloud-based accounting software saves installations charges, time, and costs. You can sign in and directly get started with entering your transactions.

Online accounting software is always updated. You can access all your financial data from any device connected to the internet, work from anywhere, and restrict access according to your preferences. Businesses can save costs with cloud backup and maintenance features.

For synchronized access and integration, one must select a cloud-based accounting software. It simplifies your business workflow with effective automation. The comparative advantages of cloud accounting can help you stand out among your competitors.

When Does a Business Require Offline Accounting Software?

For businesses like retail stores, desktop-based software works well. Their business requirement is limited to invoicing over the counter. They do not require connectivity at their business location.

If your business category is different from that of a retail store, go for cloud-based accounting software. Secure your business data control your finances at your fingertips with online accounting software.

2. Data Security

Your finances determine the sustainability of your business. Thus, ensuring data security plays a vital role in managing your finances. If you are selecting online accounting software, you must consider having a precise checklist.

Most online software manages accounting data over their websites. You should consider asking your service provider about the security measures they take to ensure your business data security.

You can review the security certificate of the server your accounting application hosts. Make sure that the data transferred from your device is encrypted. Encryption ensures that your financial data is not hacked or viewed by an unauthorized person or entity.

3.Features

Features are one of the main factors you must consider while choosing the best online invoicing software for your small business. Here’s a quick checklist of essential features that an accounting package must include.

What Additional Features Should You Look for in the Best accounting software?

Now, make a detailed list of essential features according to your business requirements. Review all the features before making your final decision.

4. User Interface & Complexity

You need not be an accountant to handle your business accounting. In case you have an accountant to manage all your accounting tasks, you should know how to log in and use it. It should be user-friendly for employees or accountants to learn the software in no time. It will rid you of training costs.

You needed not to subscribe for features that your business does not require. If your accounting software is simply stuffed with all the features, it can be hard for your employee to use it. Thus, choose software that comes with a simple user interface. It will help you and your employees to focus on crucial accounting tasks.

5. Exit Options

Your accounting software must have a feature that provides data export facilities. You must be able to export ledger and other transactions under unfavorable circumstances. However, it is always ideal to check if your accounting software offers backup options at regular intervals.

6. Scalability

Do not restrict your accounting needs. It is most specific for any small business in India to expand with time. When you buy software with limited features as per your current requirements, it might fail to cope up during expansion.

Rid from migrating from one software to another and all the painful data transfer processes. Select an invoicing software that can scale the needs of your growing business. Go for software that has a progressive version concerning the size and type of companies.

7. Hidden Costs

Most accounting software offers lower costs to attract customers. Once you buy the software, you will have to deal with hidden costs. For instance, some software might charge you extra for upgrades, maintenance, or additional support.

Check before you buy any software. Visit the official website and check the pricing page. If the software offers any additional services, you will know in prior.

8. Post-Sale Support

Post-sale support is one of the key features that cannot be ignored while purchasing accounting software. No matter how great the user-interface of the software is, you require premium support at crucial points. Select a software company that you can reach out to when you are stuck.

Most accounting software offers a cheaper price because they do not provide any support. Avoid any such products and rid them of throwing all your investment in vain.

Try calling the support number or reach out to messaging on the company portal. Simply check how well the company responds to your quarries. You will know their support infrastructure instantly.

9. Tax Preparations

Ease your business workflow by hiring an accounting software that automates tax calculation, tax reporting, multiple tax rates, and features like filing GST compliances. It should have the necessary features that allow access to all your financial data under a single system. An ideal tax ready invoicing software will help you file GST returns as per the latest tax rules specified by the government.

10. Automation

Automation is a vital aspect of hiring accounting software. It helps accomplish all your bookkeeping tasks effectively in no time. You can automate your recurring transactions, send a payment reminder email, auto-charge customers, etc.

Ideal accounting software helps capture data from receipts, and effortlessly convert them into transactions. Work on the core business functions while you can automate most of your accounting tasks. Rid of the tedious accounting processes and manual interventions. Choose an ideal accounting software for your start-up.

11. Integration

The integration enables you to work flexibly. Any changes you make are automatically updated, eliminating repeated entries.  For instance, when you link your customers’ information via CRM software, the same will be reflected on your application, so all your employees are on the same page.

Thus, the accounting software you choose for your small business in India must be integrated with a third-party server, CRMs, project management tools, or inventory management system.

12. Payment Gateways

The last but most important feature that an ideal accounting software must include is the payment gateways. It enables your customer to pay instantly by securely integrating payment gateways. It provides multiple payment options like credit cards, debit cards, online bank transfers, and other convenient options.

Once the payment has been processed, the software automatically updates the invoice status in the system. There are various payment gateways available in the market today. Check for a feasible option for your business and ensure that your software connects to a preferred payment gateway.

Imprezz.in – Best Accounting Software

Imprezz, the GST accounting software, is an ideal choice for small businesses in India. It includes all the necessary features mentioned above. You can avail customized subscription packages rather than wasting your money unnecessarily on useless features.

The cloud-based invoicing software supports integration and advanced payment options. Our customer support is available round the clock to ensure your happiness. We provide customizable features concerning your industry or business size and type. Subscribe to Imprezz and ease your accounting task management.

Steps to Select the Best Accounting Software

1. Discuss with Your Accountant or Employee Who Would Use the Application

Your accountant or employee knowns your accounting needs better. It is ideal to talk to them to understand better which accounting software is suitable for your business needs. Discuss and make a checklist that will determine the best choice.

2. Pricing and Budget

Knowing your budget will automatically streamline your options. Most bookkeeping software comes with different prices and packages. Look for an overall plan that fits your budget.

3. Shortlist Your Options

Google is our next mother. It should be the first point where you start your research for the best GST accounting software: checkout software comparison sites and testimonials. Create a shortlist of software programs that you like the most.

4. Request a Demo

You can request for a demo on the software provider’s website. Ask questions concerning your niche while you take a demo. Precisely watch the application walkthrough videos if there are any available on the site.

5. Start a Free Trial

Do not purchase software before taking a free trial. It will give you a clear idea about the software and its functionalities. Enter some dummy financial data to check the accuracy of the financial reports. If the software meets all your requirements, you can go ahead and purchase it.

Mistakes to Avoid While Purchasing the Best Accounting Software

Conclusion

Selecting an ideal accounting software for your business can be overwhelming. Once you invest in accounting software, migrating can hurt your business. Instead, spend your time looking for the best option out there.

Are you searching for the best billing software in the market? Imprezz.in is a one-stop accounting solution for all your accounting needs.

Do you want to cross-check the capabilities of the software? Start a 14 days free trial software program on Imprezz. Log in and start your accounting right away!

Impact of GST on Indian Economy during COVID-19The GST council of India has completed three years of the GST regime. However, the government is still striving to address various issues and concerns to build a sound taxation system. While the government was resolving downsides concerning the impact of GST on the Indian economy, the COVID-19 pandemic has worsened it.

The global pandemic has wrecked the world’s economy. Several countries are striving to cope with the impact of COVID-19 on businesses. India’s government has notified several economic relief measures, and tax calculation changes for companies registered under the Goods and Services tax regime.

Concerning the ongoing crisis, experts believe that the chances of businesses experiencing negative growth in India are extremely less. Currently, enterprises are resuming in the country, and the economic growth trajectory will be restored by 2021. The government is primarily focused on the GST implications of COVID-19.

In this article, you will read more about the potential impact of GST on the Indian economy during the COVID-19 pandemic.

GST Implications Amid COVID-19

The deadly COVID-19 pandemic has led to the loss of innocent lives, steepening the economy globally. It has left people with no shelter, food, job, or hopes. The severe economic impact has collapsed various industries and businesses.

The pandemic has created a new world of uncertainty. The economic standstill is said to recess a large part of the world. Several countries were striving to recover the low economic growth of 2019 in the current year. But COVID-19 has made it impossible for individual countries to stand back again.

The good news is India has always had fast recovery concerning the economic crisis in the past. Industries, large enterprises, and small businesses in India are hoping for a quicker economic recovery in this case as well. Here are some of the GST implications notified by the government during COVID-19.

Extended Due Dates

The finance minister, Nirmala Sitharaman, announced the extended due dates to File GST compliance. The government took up a step by step implementation of the new announcements. The ordinance was brought on 3rd March 2020, followed by the notifications released on 31st March 2020.

Besides, the GST council also released several relief measures to provide relaxation to businesses. The government made it mandatory for businesses to e-invoice the GST tax invoice format to simplify filing GST returns. The notifications and circulars issued on 3rd April 2020 came with several benefits for delayed returns filings and other provisions under the GST regime.

We have listed the extended due dates in detail. Click here to know more about updated due dates and other tax calculation changes during COVID-19.

Note: Under circumstances where returns are filed after the beneficial dates given by the government, late fee along with an interest rate of 18% will be charged. It is vital to know that the extended due dates are applicable only for the current fiscal year. These benefits are not notified under the Income Tax Act (ITA).

Impact of GST on Indian Economy – Ongoing Contracts

Concerning the ongoing contracts, there are several cancellations or reductions in prices due to the impact of GST on the Indian economy. Below mentioned are pointers of the same.

        1. Goods: Credit Notes for Goods Returns

Under the newly notified GST announcement, Income Tax Credit or Credit notes can only be claimed if the reverse ITC amount of the recipient is available on the GST portal in GSTR-2A.

Taxpayers can issue credit notes within six months from the end of the fiscal year or on the date of filing annual returns. It is up to the convenience of the taxpayer. However, a credit note cannot be issued if the taxation on specific supplies mentioned has been passed to some other person.

In case there is no tax liability, taxpayers can avail of the refund. A credit note against the same has to be adjusted accordingly.

      2. Goods: Posts Sales Discount 

To avail post-sale discounts, several enterprises are entering the supplementary contract or agreements. Thus, customers demand negotiation before processing the final payments.

Business owners must make note that agreements applicable for any discounts must be pre-notified before or at the time of the supply of goods. Thus, any negotiations or supplementary contracts made effective after the sales can be challenged by the department.

      3. Services: Credit Notes      

For services, taxpayers can issue credit notes for taxable value or tax charged. The same must be issued under the tax invoice for deficiently supplied services.

Enterprises must provide evidence before the department explaining the reason why they require a downward revision in prices. They should justify the circumstances that led them to the same. Under such circumstances, small business owners can avail of a refund with the approval of the department.

       4. Services: Advances Received for Services on Contracts Cancelled 

The GST liabilities must be discharged on advances received on services in the prior of receipt. In case the contract is canceled after receiving the advance, the assesses can either claim refund or adjust the advance tax against liability. A tax refund is available under such circumstances.

Impact of GST on Indian Economy – Income Tax Credit (ITC) Implications

      1. Income Tax Credit (ITC) Incurred to Rid from the Impact of COVID-19

Enterprises have decided to incur their expenses to combat COVID-19. The government has provided a directive for business owners to incur a particular expenditure along with expenses. For instance:

Note 1: The business owners must know that each expense will be examined before its allowability. For instance, health insurance is not allowed under the GST Act unless provided as per the government’s notification.

Note 2: Business owners must maintain documentation to justify the need for expenses incurred.

    2. Reversal of ITC for Not Paying Suppliers Within 180 Days

The due dates are extended. The government has not provided clarification regarding the reversal of ITC if suppliers aren’t paid within 180 days. However, if the government offers any such explanations, business owners will have to take a call accordingly.

In case the limit of 180 days exceeds the due date, it is evident that no extension will be applicable concerning the terms and notifications mentioned above.

     3. Reversal of ITC on Obsolete Inventory

Business owners must reverse the goods that are destroyed, disposed, or written off. Enterprises must maintain accurate documentation for appropriate obsolete inventory form and reverse ITC at the same time when filing returns.

        4. ITC on Goods Sold at Loss

During the COVID-19 pandemic, many businesses had come to a standstill. They were selling under distress. If enterprises have accurate documentation on goods sold for a lesser price, they can claim for refund.

       5. Goods sent for Job-Work.

When inputs are sent to job work without tax payment, the principal is liable to pay tax and applicable interest for the unpaid period. The same applies to goods sent for job work. It is recommended that business owners apply for a time limit extension on reviewing the status of capital goods and inputs sent to job work.

Review of Existing and Future Contracts

Business owners must review all their existing contracts. Taxpayers must undertake the review of possible impacts of clauses and obligations in the agreement concerning the following:

Conclusion

We tried to envisage the potential impacts of GST on the Indian economy during COVID-19 in a nutshell. Currently, the country is stepping back to the normal with the nation-wide lift of lockdown.

Business scenarios are rapidly evolving. Thus, the impact of GST on the Indian economy might change direction amid ongoing changes brought due to COVID-19. The consequences mentioned above can be used as guidance for now. However, the GST implications can differ from case to case.

It is recommended that business owners maintain accurate documents concerning each bank transaction. Only then can a business benefit from the temporary taxation changes.

At Imprezz.in – Billing software for GST, we understand it is nerve-wracking to track all financial records. We provide a 14 days free software trial program on our accounting software for small businesses in India.

E-invoicing is made hassle free with Imprezz accounting solutions. Avail exclusively tailored invoice template to E-invoice GST. Imprezz, the best accounting software allows you to file GST returns in just a few clicks.

You can manage all your manual bookkeeping tasks under the cloud. Access your financial data, manage your accounting tasks, create invoices from anywhere during these tough times.

Log-in to our online quote creator software to experience touchless inventory management. Enjoy the benefits of free invoicing software along with reaping the benefits of GST amendments amid COVID-19.