GST E-Invoice Part-1GST e-invoice has become a point of discussion among businesses and taxpayers in India. When any goods or services are transported from one place to another, the transaction is facilitated by filing invoices or e-way bills on the government GST portal. In the 35th meeting held by the GST Council, the government decided to implement a GST e-invoicing system to curb tax evasion and automate multi-purpose reporting tasks with a single entry of invoice details.

E-invoice is a standardized invoicing format where businesses and taxpayers register invoices electronically as per the GSTN recommendation. E-invoices must be generated by the Invoice Registration Portal (IRP) to upload on the common GST portal. E-invoicing doesn’t mean generating tax invoices over the GSTN portal; it is a misconception or a myth. Instead, it is just the submission of invoices generated by business intelligence software like Imprezz.

Imprezz offers the best e-invoicing software solution for small businesses, accountants, and freelancers in India. The software provides seamless API integration, import, and export functions to upload or download excel sheets. It is a user-friendly and automated accounting system that comes with value additions; reconciliation, e-way bills, GST returns filling, reporting, customizable quotation templates, standardized e-invoicing, data archiving, etc.

Latest Updates on E-Invoicing under GST

10th November 2020 – businesses and taxpayers with an annual turnover exceeding or equal to 100 crore rupees must implement e-invoicing from January 2021.

30th July 2020 – CBIC notified the newly refined e-invoice format. 20 mandatory fields were included after removing 13 existing fields. Alongside, existing fields were altered with necessary changes concerning the character length and other invoicing essentials. As per the notification declared by 30th July, e-invoicing is applied to taxpayers with an annual turnover exceeding 500 crores instead of 100 crore rupees. However, the Special Economic Zones (SEZ) were exempted from issuing e-invoices.

23rd March 2020 – Implementing the e-invoicing system and the QR code was postponed to 1st October 2020. As per the guidelines notified until 23rd March 2020, financial institutions, insurance companies, banks, NBFCs, passenger transportation services, GTAs, and movie tickets were exempted from e-invoicing and QR codes.

14th March 2020 – the new returns system was announced to be implemented from October 2020. The existing GST returns filing system (GSTR-1,2A & 3B) was enacted until September 2020 as per the CBIC notification.

13th December 2019 – the class of taxpayers required to generate e-invoices on IRP was notified by CBIC. Taxpayers and businesses with an annual turnover exceeding 500 crores were mandated to file e-invoices starting from 1st April 2020. The government had also declared the mandatory fields contained in e-invoices under the CGST rules.

10th December 2019 – the final version of the e-invoicing template and mechanism was released by the GSTN on the common portal after the GST council’s approval.

20th September 2019 – considering the announcements made in the 37th GST Council Meeting, the new GST return system was said to be implemented from April 2020.

20th August 2019 – the draft template of e-invoice was released by GSTN for the industry feedback, known as the GST e-invoice schema.

What is GST E-Invoicing?

E-invoicing, also known as electronic invoicing, is defined as business invoices that are electronically authenticated by GSTN which is further used in GST return filing on the common portal. Under the e-invoicing system, the IRP (Invoice Registration Portal) managed by GSTN (GST Network) issues an identification number against each invoice. The National Informatics Center launched the first IRP on the government website.

Any billing information is transferred from the government portal to the GST portal and e-way billing portal automatically. It aims to eliminate the tedious task of manual data entry, multiple times that goes in submitting the GST forms and drafting e-invoices. IRP cuts short the lengthy process by directly sharing information to the GST portal.

What is the Existing System to Issue GST E-Invoices?

Businesses have adopted various software systems to create and send invoices. Details from the software are used while uploading the GST forms. Invoice information submitted in the FROM GST-RET-1 by the supplier will be reflected in FORM GST-RET-2 for the recipients to view. Suppliers are supposed to upload e-invoices by manually importing all the necessary data into the software system.

The existing e-invoicing system implemented on 1st October 2020 contains the same procedures and processes of creating and uploading the invoice details. Usually, it is done by importing either excel or JSON files through import tools or AI integration (you can use Imprezz accounting software to access import tools and AI integration features under a single platform) either directly or through (GSP) GST Suvidha provider. It aims to streamline data flow in the configuration of FORM-1 and generate e-invoices.

How Does E-Invoicing Benefit Small Businesses in India?

GST e-invoice is said to support small businesses in India alongside helping the government curb tax evasion. Small businesses can benefit from the GSTN initiated e-invoices in the following ways:

What is the Initiative of GSTN E-Invoices?

The format for e-invoice was released in Excel format by the GSTN on 20th August 2019 to avail the public’s feedback. The GST Council approved the format suggested, with certain modifications after the 37th GST Council Meeting held on 20th September 2019. The GSTN, along with the supervision of ICAI, drafted the final standardized e-invoice format that complies with GST and other Indian local tax laws. Moreover, the GST e-invoice format is drawn after considering various international and national standards. Thus, the final format of the GST e-invoice quickly adapts to any business or industry type.

Business intelligence/accounting software follows the standard PEPPOL while generating invoices. It enables taxpayers to create GST compliant invoices. GSTN has referred to the standard of PEPPOL (Pan European Public Procurement Online) that works well on the Universal Business Language (UBL) version of E-XML. This standard is currently a widely used system that enables various business applications and communities to share information throughout the supply chain. The single data entry point enables businesses to streamline the data flow through multiple gates with IRP’s help.

GST e-invoice contains the following sub-categories:

E-Invoice Schema – it is the primary part of an e-invoice containing the technical field name, description of each field, mandatory and optional fields, and some sample values with an explanatory note.

Masters – it is the second part of an e-invoice that defines the inputs set for specific fields predefined by the GSTN. It includes fields such as state code, UQC, invoice type, supply type, etc.

E-Invoice Template – it is the end part of an e-invoice; the template complies with the GST rules, enabling the user to link the terms used in other documents. In any e-invoice template, mandatory fields are marked in green and optional fields in yellow.

When was GST E-Invoice Implemented?

According to the latest announcements, taxpayers with aggregate turnover exceeding 500 crores were supposed to generate e-invoices from 7th January 2020 through API voluntarily. Taxpayers with a turnover exceeding 100 crores but less than 500 crores were asked to create e-invoices starting from 1st February 2020. The e-invoicing system was mandatorily implemented only after 1st April 2020. However, later it was postponed to 1st October 2020 for taxpayers with a turnover exceeding 500 crores. The aggregate calculated must include the turnover of all GSTNs under a single (Permanent Account Number) PAN across India.

E-Invoicing Under GST – Major Challenges

Despite several amendments made in the GST electronic invoice system, taxpayers and businesses still face several hurdles.

Conclusion

Cygnet GSP successfully processed more than 8,515,000 electronic invoices in the first month, representing 18.6 percent of the total electronic invoices generated on the NIC portal. Since e-invoicing is now mandatory, it would be a good idea to start preparing ahead of time and evaluating your business and vendors. Say no more to the tedious GST accounting tasks, implement Imprezz invoicing and billing software.

We offer a 14 days free trial software program for small businesses and taxpayers in India. Login to get started with GST e-invoicing.

The Goods and Services Tax (GST) has brought significant changes in the Indian economy. It has been consistently reshaping the tax calculation system. However, it has also confused taxpayers and people in business concerning the GST laws and rules. The new GST tax system has eliminated the cascading taxes on the supply of goods and services. It has successfully replaced indirect taxes such as value-added tax, excise tax, service tax, and other local taxes.

In theory, the implementation of GST and relaxations notified recently might sound great, but how do business owners get ahead with it? This article is part of our basic GST guide; Part-3 briefly summarizes various GST rules and regulations.

GST Rule-1: Title, Commencement & Application

The above mentioned GST laws put together can be termed as Goods and Services Tax (GST) Valuation Rules, 2016. This rule helps determine the value of the supply of goods and services. The law applies to the supply of services and goods under CGST, IGST, and SGST.

GST Rule-2: Definitions

These rules define specific terms as per the context. For instance, the “Act” is defined either as the IGST Act or CGST Act and, in some context, SGST Act. The term “goods of like kind and quality” is used to define physically similar, identical, qualitative, and reputed goods. It describes the value of goods that perform the same functions. Wherein the term “services of like kind and quality” defines the identical or similar services supplied. Any word, expression, or phrase that is not explicitly defined under this rule shall have the same meaning as specified by the law.

GST Rule-3: Determination of Value

The value of any goods or services is considered as transaction value, subject to rule 7 under the GST law. In monetary terms, “transaction value” is the specified value of the supplies. When a transaction consists of both taxable and non-taxable supply, it is identical to the monetary consideration attributed to it. The acceptance of the value remains unchanged even when the supplier and recipient are related.

The value of supplies depends on where goods are being transported from; one business place to another, principal to an agent or visa-versa, one country to another, and the same location. Only supply values specified under subsection (4) of GST law, as per Article 17, are determined according to Rules 4 to 6.

GST Rule-4: Determination of Value of Supply Through Comparison

The value of supplies that cannot be determined under Rule 3 is determined under this rule. For instance, the value of goods and services supplied is determined by the transaction value based on the same quality and kind under the sub-rule provisions (2). Wherein. If the value is being determined under sub-rule (1), various factors have to be considered; the difference in the date of supply and the difference in the quantity and commercial levels. The officer must also consider the difference in composition, design, quality, freight, and insurance charges of the goods and services concerning the place of supply.

GST Rule-5: Value Method

When the value of supply cannot be determined by the rules mentioned above, it is determined under Rule 5 based on the computed value. The value methods include production cost, manufacturing, processing, cost of provision, brand or design charges, profits, and general of the goods and services of the same kind and quality as that of other suppliers.

GST Rule-6: Residual Method

The residual method helps determine the value of goods and services that other rules fail to determine. Rule 6 determines the value using factors consistent with the general and principal provisions of these rules.

GST Rule-7: Rejection of Declared Value

If the concerned authority feels the need to cross-check the value’s furnished details or accuracy, they will ask the supplier to provide additional information as evidence. After receiving further proof, if the designated authorities feel the need to examine the declared value’s accuracy, the value of any such goods or services will be considered deemed. The transaction value of any such goods or services cannot be determined as per the sub-rule (1) under Rule 3.

The reasons for doubt cannot be limited to the significantly higher or lower value of goods or services than the market value of similar products. Authorities cannot reject the determined value based on the description, quality, manufacturing or production date, and quantity. Concerned officers must notify the suppliers by writing the reasons for doubting the accuracy of furnished details of determining value. Further, suppliers will be provided with an opportunity to clarify the doubts before taking the final decision under the rub-rule (1).

GST Rule-8: Valuation in Certain Cases

Pure Agent – The value of goods and services that remain undetermined under any of the rules mentioned above will be contained under Rule 8. The law excludes a service provider’s expenditure as a pure agent from the value of taxable service.

Money Changer – The value of any taxable service supplied, which includes the purchase of foreign currency or currency exchange, is determined by the service provider.

Conclusion

Staying GST compliant while running a business can seem tedious. However, it is one of the significant business operations that help business owners adhere to GST rules in 2020. The daunting accounting tasks become much more manageable with reliable and GST billing and invoicing system. It helps create and send invoices and track inventory as per the notified GST invoice rules. It is easy to use, accessible, and cost-effective.

Imprezz is the pioneer of accounting software in India. It helps bill faster, easier, and keeps track of each transaction while your business can comply with GST laws and rules. You can quickly issue invoices, quotations, notices, purchase orders, credit notes, over dues, balance sheets, and more. We offer a 14 days free trial software program for small businesses. Login to get started!

Basics: GST Laws and Rules Part -2

The Goods and Services Tax (GST) is an indirect tax regime that has replaced several indirect taxes in India. The GST laws and rules on goods and services were approved in the Parliament on March 29th, 2017, and came into force on July 1st, 2017. Any supply of goods or services is subject to GST. It is a comprehensive, multi-stage, destination-based tax that is applied to every value addition.

Under the GST system, the tax is applied at each point of sale. The central goods and services tax and the state goods and services tax apply for sales within the country. All interstate sales are subject to an integrated goods and services tax. This article is part of our basic GST guide; Part-2 briefly explains various Revised Rules under GST.

Revised Invoice Rules

Revised tax invoices under GST must be modified under the specified GST rules and format. While providing invoices for the supply of services or goods, suppliers might want to modify or revise the tax invoice. In such cases, a supplier must adhere to the following GST tax laws while invoicing.

Revised Tax Invoice under GST – Format

A revised tax invoice must contain the following specifications as per the GST invoice format in India:

Supplementary Invoice

According to the GST invoice rules, if the taxable value or tax amount charged in a tax invoice is less than the payable amount or value of supply, taxpayers can issue either a credit or debit note. Credit or debit notes must be titled “Supplementary Invoice.”  Later, supplementary invoices must be included in the monthly returns, during which debit or credit notes were issued, to adjust tax liabilities.

Revised Payment Rules

CBEC released revised payment rules; it provides the methodical aspects relating to the following:

Electronic Tax Liability Ledger

As specified in subsection (7) of section 49, the electronic tax liability ledger must be kept in FORM GST PMT-01. It applies to all taxpayers liable to pay interests, fines, late fees, tax, or any other taxable amount on the common portal. All the tax payable amount will be debited to the ledger, as mentioned above.

Electronic Credit Ledger

The electronic credit ledger should be maintained in FORM GST PMT-02. It applies to the taxpayers eligible for the ITC (input tax credit) under the GST ACT. Every ITC claim will be added to a credit ledger as per the GST law.

Electronic Cash Ledger

The electronic cash ledger should be maintained under Subsection (1) of Section 49 in FORM GST PMT-05. It applies to taxpayers liable to pay taxes, late fees, fines, interests, and other payable amounts on the common portal for the deposited amount credited and debited towards the payables, as mentioned above.

Identification Number for Each Transaction

The portal generates a Unique Identification Number (UIN) for each debit or credit reported in the e-cash or credit ledger. The UIN concerning any liability discharge is indicated in the corresponding entry of the tax liability ledger.

Revised Refund Rules

Revised refund rules under GST specifies the laws to be followed by taxpayers to request a refund of tax, interests, fine fees, or any other amount. Taxpayers, except for those that fall under section 55, requesting the refund of tax and any aforementioned additional amount must submit their request through FORM GST RFD-01. They can upload the form either directly on the GST portal or through the facilitation center, as notified by the commissioner.

Revised Registration Rules

Taxpayers who are subject to registration under subsection (1) of section 25 and subsection (3) of section 25 must provide their PAN (Permanent Account Number), mobile number, e-mail address, and state or union territory information before registration in FORM GST REG-01 on the common portal. They can either upload these particulars directly or through the facilitation center.

The revised registration rule does not apply for the non-resident taxpayers, taxpayers providing online information and data access to a person abroad under section 14 of Integrated Goods and Services Tax (IGST), taxpayers subject to deduct taxes under section 51, and taxpayers subject to collection of taxes under section 52. Taxpayers from special economic zones or SEZ developers must submit a separate registration application as a business sector distinct from other units outside their zone.

Revised Return Rules

GST has integrated various returns under a single tax calculation system. However, GST entails categories of return filing. Any taxpayer has to adhere to these revised return rules to avail ITC.

Outward Supplies

Taxpayers must provide details of outward supply of goods and services, or both, under section 37. These details must be furnished in FORM GSTR-1. Taxpayers must file the form electronically on the portal as per the new GST law. They can either file returns directly or through the facilitation center.

Inward Supplies

Registered persons are required to provide details of inward supply of goods and services, or both, received during a tax period as per subsection (2) of section 38. They are supposed to furnish the details based on Part A, Part B, Part C, and Part D of the GSTR-2A FORM.

Taxpayers must furnish the details specified in subsection (1) of the previous section and submit it through FORM GSTR-2 electronically through the common portal. They can either upload it directly or through the facilitation center. Once taxpayers mention the inward supply details mentioned above, other information can be uploaded under subsection (2) of section 38.

Monthly Return

Taxpayers who are not distributors, non-resident taxable individuals, businesses taxable under section 10 or section 51 must file a specific return under subsection (1) of section 39 in the FORM GSTR-3 electronically through the common portal. They can either upload it directly or through the facilitation center.

Quarterly Return

Taxpayers subject to pay tax under section 10, after the amendment of details in the FORM GSTR-4A, must file quarterly returns on the FORM GSTR-4 electronically through the common portal. They can either upload it directly or through the facilitation center.

Revised GST Laws and Rules for Non-Resident Taxpayers

Non-resident taxpayers must submit FORM GSTR-5 electronically through the common portal. They can either upload it directly or through the facilitation center. They must also include the details of overseas supplies received, interests, fines, late fees, or any other amount payable under GST rules and regulations. Taxpayers must submit the form 20 days after the end of the taxation period or within seven days before the registration validity period ends (whichever applicable).

Revised GST Laws and Rules for Input Service Distributors

Registered Input Service Distributors must provide information on services, amend necessary details submitted in the FORM GSTR-6A (if any) and submit the FORM GSTR-6. They must also include tax invoices on which credits are collected and issued under section 20. They can either upload it directly or through the facilitation center.

Revised GST Laws and Rules for Taxpayers Required to Deduct Tax at Sources

Taxpayers required to deduct taxes at the source under Section 51 must file returns through the FORM GSTR-7 electronically through the common portal. They can either upload it directly or through the facilitation center.

Revised GST Laws and Rules for E-Commerce Operators

E-commerce operators in India collect taxes through sources under section 52; these taxpayers must submit statements in the FORM GSTR-8 electronically through the common portal. They can either upload it directly or through the facilitation center. The form must also contain details of supplies carried out through these operators and the tax amount collected under subsection (1) of section 52.

Conclusion

The new GST laws and rules were implemented earlier this year. Documents related to GST rules have been shared by the GST Council and CBEC authorities. These documents deal with taxable events under the new GST laws and rules. GST Rules 2020 aims to simplify the Revised GST rules, GST returns filling, and more.

Imprezz is fully-featured, integrated accounting software that helps taxpayers and businesses comply with GST rules. With the Imprezz billing and invoicing system, you can create quotes, invoices, proforma invoices, sales, and purchases adjustments and send GST returns based on the GST billing rules.

We offer a 14-days free trial software program for small businesses, freelancers, and accountants in India. You don’t need to be an accounting expert to manage your finances at Imprezz. Log in to get started!

GST Laws and Rules Part -1The Goods and Services Tax (GST) has been enforced throughout India as of 1 July 2017. Any taxpayer or business entity registered under the current tax administration must register under GST. The GST tax regime has replaced all other taxes. Since the inception of GST laws and rules, most indirect taxes, central excise duty, entertainment tax, service tax, purchase tax, central sales tax, and lottery tax are non-operational.

As a massive relief to taxpayers, the GST council has doubled the threshold limit to 40 lakhs. The government has also doubled the threshold limit for northeastern states to 20 lakhs wherein, the limit for hilly regions in the northeast is 10 lakhs. Indirect taxes have been merged into tax packages under the GST system. These relaxations in tax calculation have removed the tedious return filing procedures.

GST has made it easier to manage the financial operations of a business. The Goods and Services Tax is no longer an odd concept; it has been successfully functioning in 160 countries across the globe. According to India’s financial experts, the GST system is likely to boost the GDP to around 1-2% and reduce input costs by 10%. Essential customs duties, petroleum, alcohol, and property tax are still kept away from the purview of GST.

Without registering under GST, one can neither collect GST from his clients nor claim ITC for the bills that he/she pays. This article is part of our basic GST guide; Part-1 briefly explains GST rules’ basic laws and regulations, Compensation Scheme, Valuation of Supply, Transition Rules, and Input Tax Credit.

Fundamental Factors Influencing the Applicability of GST

The Goods and Services Tax in India is applicable based on various criteria, that includes:

GST Laws and Rules – Composition Scheme

The GST system’s introduction has gradually increased the number of registered businesses and taxpayers in the country. The Goods and Services Act has also introduced an alternative tax registration composition scheme that favors small businesses in India. The composition scheme entails some significant changes when compared to schemes that existed under the previous VAT regime. The scheme applies to businesses with an aggregated turnover of 1.5 crores or less (a lower limit applies to businesses that operate in northeastern states).

GST Composition Scheme Rules

The provisions of GST law allow small businesses in manufacturing sectors, service sectors – restaurants and merchants, register under the composition scheme. However, the scheme does not apply to the following taxpayers or businesses.

The list mentioned above is only indicative; it is subject to change. Note that, according to the current GST rules and regulations, the composition scheme does not allow businesses and individuals to participate in Interstate supplies. However, they can obtain goods or services from suppliers who are authorized to carry out interstate supplies under the GST law.

Businesses or individuals registered under this scheme can purchase goods or services from other states, but they are restricted from selling their goods or services to other states. No business other than restaurants were allowed to register under the composition scheme. The government changed this rule in January 2019 and announced that businesses in the service sector could also register under this scheme.

GST Laws and Rules – Value of Supply

The value of the supply in general terms, is the tax amount paid to the supplier as consideration of the supply. The valuation rules define the value of goods or services or, at times, both that are taxable under the GST law. These rules are established under the GST regime to determine the fair market value for the registered taxpayers’ goods and services.

Valuation Rules under GST

Here is a list of valuation rules that determine the value of goods and services supplied under section 15(4).

The value of supply is the amount taxed and collected. For proper tax collection, it must be determined what is and is not a part of the value of supply. The previous tax regime resulted in instances in which there were many disputes over the value of sales that would be collected.

GST Laws and Rules – Transition to GST

Transition to GST from the previous tax regime might give rise to several questions. According to the GST law, a taxpayer can claim ITC for the amount of tax paid while purchasing goods. The tax credit from the previous tax system can be converted as ITC collected in GST during the transition to the GST system. Taxpayers can claim ITC under GST only if all goods and services are mentioned in the returns filed that are eligible for credits under the Goods and Services Law.

To transfer input tax credit to the GST system, taxpayers must log in to the GST portal and submit an electronic form; TRAN-1 or TRAN-2 as applicable, stating the amount of tax or duties they wish to claim as a credit. The application forms submitted must entail the following information:

The tax department will process the application submitted. Once approved, the credit amount allowed will be added to the applicant’s e-ledger under the GST PMT-2 form on the public portal. Transferring the credit to Goods and Services Tax (GST) is similar to previously registered businesses under excise duty, value-added tax, or service tax.

GST Laws and Rules – Input Tax Credit

Goods and Services Tax in India is one of the most extensive reforms in history. However, one thing that has become a center of attraction is the mechanism of Input Tax credit (ITC).  In simpler words, ITC is the means to reduce the tax to be paid on sales by availing credits on tax that a business or individual has already paid on purchases. It implies the reduction of input tax paid from taxes to be paid on output tax.

When any services or goods are provided to a taxable person, the tax collected goods and services are known as input tax. In India, taxpayers are well aware of ITC as it already existed under the excise taxation system before GST. However, the implementation of GST has widened the scope of ITC. Previously, taxpayers could not claim ITC on central sales tax, luxury tax, entry tax, and other taxes. Moreover, service providers and manufacturers were not allowed to claim central excise duty either.

Before the implementation of the GST regime, there was an interdependency of VAT against excise/service tax. Under GST, these taxes are included in a single tax calculation system; there are no restrictions that offset claiming the input tax credit. Post-implementation of GST, claiming ITC is one of the crucial accounting activities for all businesses and taxpayers.

ITC does not apply to all input goods and services; each state or province might have different GST rules and regulations. It is also applicable to the merchant who purchased an asset for resale. Input Tax Credit is the backbone of GST and taxpayers in a significant concern. ITC has always been in line with the pre-GST system, and thus, these rules are strict in their approach.

Conclusion

The relaxations on new GST rules provided by the government were implemented earlier this year. Documents concerning GST rules were shared by the GST Council and CBIC authorities. These documents address the events that are subjected to tax under the new GST laws and regulations. GST rules 2020 aim to simplify the pre-process of transition, ITC claim, the value of supply, GST return filing, and more!

Imprezz is fully-featured, integrated accounting software that helps taxpayers and businesses comply with GST rules. With Imprezz invoicing and billing system, you can create quotations, invoices, proforma invoices, sales, and purchase reconciliations and file GST returns as per the notified GST invoice rules.

We offer a 14 days free trial software program for small businesses, freelancers, and accountants in India. You need not be an expert in accounting to manage your financial tasks on Imprezz. Login to get started!

New GST Returns –OverviewPrime Minister Narendra Modi launched the Goods and Services Tax (GST) at midnight on July 1, 2017. The implementation process has been in the making for nearly two decades since the concept was first proposed under the government of Atal Bihari Vajpayee. In the sight of the new GST returns filing system, the aforementioned law’s journey has always been storm-tossed.

The complex, multifaceted returns structure has been one of the significant challenges of the current GST compliance framework. The initial set up of the GST compliance framework (GSTR-1, GSTR-2, and GSTR-3) is not fully operational. The government and taxpayers have been encountering several difficulties concerning the current layout of GST compliance.

Considering the point of view mentioned above, the 31st meeting of the Goods and Service Tax Council brought some of the significant proposals to the table, one of which includes the GST new return format. Although it was proposed to be implemented from April 2020, the government implemented the GST scheme from October 2020 due to the on-going pandemic and economic crisis.

In this article, we have compiled the structure, types, key features, and know-how of the new GST compliance framework to provide you a clear picture of the new GST regime.

Overview of the New GST Returns Filing System

GST RET-1 / RET-2 / RET-3 is a recently proposed new GST returns filing system that contains the details of each supply made, available ITC, tax payments, and interests (if any). It is one of the significant amendments made under the GST tax calculation system in the year 2020. This return has two annexures called FORM GST ANX-1 and FORM GST ANX-2. Taxpayers are required to present necessary information in each of these components. Here are the complete details on the scheduled timeline and flow of the return cycle.

GST ANX-1 Form (Annexure of Supplies)

GST ANX-1 is proposed to substitute the existing tax form GSTR-1. It contains details of all the outward supplies, inward supplies subjected to reverse charge GST, and imports of goods and services, which must be reported as per the GST invoice rules (excluding B2C supplies) in real-time.

According to the new return filing system, details of supplies must be uploaded by the suppliers, i.e., invoices, debit notes, and credit notes, in real-time before the notified deadline to file GST returns. For supplies subjected to reverse charge, taxpayers must report GSTIN details on form ANX-1, debit/credit notes, and paid advances (if any).

Document-level information has to be filed on the import of goods. Besides, suppliers are required to upload manual reports of the information until data from the ICEGATE system to GSTN begins to flow online. Documents and necessary information should be made available to the recipients to claim ITC in ANX-2 of the recipient.

All necessary information and documents uploaded up to the tenth day of the month following the recipient’s claim of Input Tax Credit (ITC) will be provided in the recipient’s ANX-2. Any document uploaded after the 10th of the month will be made available for the recipient in the next month.

GST ANX-1 provides room for taxpayers to upload missing documents or invoices. Now, what is a missing invoice or document? These are documents on which the government has already issued tax credits on a provisional basis, but the taxpayers fail to present the actual documents before the given timeframe. Note that, in case suppliers fail to produce missing documents, availed ITC has to be borne by the recipient.

GST ANX-2 Form (Annexure of Inward Supplies)

GST ANX-2 is proposed to substitute the existing tax form GSTR-2. The form contains details of all inward supplies. It gives authority to the recipient of the supplies to take actions on the supplier’s auto-populated documents uploaded. These are generally available to them on a real-time basis. It also provides a comparison tool to help taxpayers match their input tax credit based on GST return and purchase history.

ANX-2 allows the recipient to accept, reject, or keep the invoices pending if the supplier uploads documents after the 10th of the following month. Once a recipient agrees to all the details furnished in the documents and accepts it, the documents will no longer be available for modifications of any sort. However, a supplier can edit the document before submitting it. The credits can only be claimed by the recipient under the form ANX-2, although the supplier’s tax liability is calculated in the same taxation period.

Suppliers can make adjustments in the invoices uploaded under GST ANX-1A (read below to know more). Invoices on which the recipient has already claimed ITC are considered as blocked invoices. Thus, if a supplier wants to make adjustments on these invoices, one must either issue a credit note or discount. The recipient can unblock any blocked invoices online, blocked automatically or incorrectly, subject to reversing the ITC claim submitted and confirmed online.

A recipient cannot claim ITC on the invoices that are kept pending. In case suppliers do not file their returns for two months or more, the recipient cannot claim the returns under ANX-2. These invoices must be rejected or kept pending until the supplier claims returns.

GST ANX-1A Form (Modifications of the Data Compiled in Form ANX-1 by the Supplier)

GST ANX-1 form is exclusively proposed to allow taxpayers to make amendments to the details submitted in the prior tax period if required. Taxpayers can make the necessary changes before the due date of September returns, the end of the financial year, or on the actual returns filing date that was earlier.

The recipient can accept the supplier’s monthly return details until the 10th of the following month. The recipient can agree to provide details of quarterly returns uploaded till the 10th of the month, following the quarter end for which the return is filed.

Suppliers can amend rejected documents before submitting subsequent returns. However, ITC will be provided to the recipient via the following Form GST ANX-2. The tax liability for these modified documents will be calculated in the same tax period.

Only suppliers will be able to edit the details of any document. Furthermore, such amendments by the supplier will only be allowed if the recipient does not accept these documents’ details. If the recipient has already accepted these details, the supplier cannot edit these details unless the recipient initiates a reset / unlock procedure. Invoices/documents that have already been claimed will not be available for modifications.

How Often Should Taxpayers File New GST Return?

The Form GST RET-1 has to be filed monthly, except for small taxpayers (taxpayers with an annual turnover of rupees 5 crores in the previous fiscal year), who are required to file quarterly returns. However, taxpayers who opt to file quarterly returns must pay monthly tax through the Form GST PMT-08.

Key Features of the New GST Returns System

The GST Council reviewed a presentation on GST returns’ simplification in its 28th meeting held on July 21, 2018; Considering the suggestions presented by Shri. Manish Kumar Sinha, Joint Secretary (TRU- II), and CBIC, the council approved the key features of the new GST return forms.

Conclusion

The COVID-19 pandemic and the global economic crisis have abruptly disturbed the government coffer. Amid the tough times, it would have been a wise decision if the government choose to improve the current GST compliance system rather than implementing the new system in place.

However, we cannot ignore the time and effort that the government has already invested in testing and developing the new GST returns filing system on the GST portal. This news comes with unexpected changes welcomed within the GST decision-making body leaving the taxpayers clueless and confused.

You can take a demo of Imprezz, an online accounting tool for the proposed new GST returns. The software helps file returns directly on the portal that allows your business to stay GST compliant. We offer a 14 days free trial software program for businesses, accountants, and freelancers in India. Login to get started!

Online Accounting Software for Small BusinessesManaging finances is a significant business operation that helps make better financial decisions. Most small business owners or freelancers cannot afford to hire an accountant as they start initially. Most accountants and freelancers prefer implementing cost-effective accounting software to manage income, expenses, and streamline finances during GST returns filing. Imprezz is an inexpensive and best online accounting software widely trusted by small businesses, freelancers, and accountants across India.

Imprezz is an ideal invoicing and accounting software for small businesses and solopreneurs looking for ways to cut down on business expenses. Pay for the best GST billing software features useful for your business rather than paying for a pile of junk altogether. The software is an all in one easy-to-use platform; you need not be an expert in accounting nor require the financial background to use Imprezz. If you don’t like spending more time on accounting tasks, you can always assign someone to take care of it.

In this article, you will learn how Imprezz accounting has been helping several small businesses, accountants, and freelancers in India. Know why you should choose Imprezz for your accounting needs.

What is Imprezz Accounting?

Imprezz accounting is a computerized package that entails numerous facilities that help process financial information. The online system collects data and classifies the data by summarizing it in an accessible way. It allows the user to view and understand financial data in simplistic terms. The best online accounting software will enable you to create and send invoices, balance reports, manage income, track expenses, and view trends.

Imprezz is a simple billing software for small businesses that offers beneficial features, whether or not the businesses have employees. It is one of the most reliable online billing platforms that help track multiple companies and personal accounts. Imprezz integration brings various applications under one platform; you no longer have to log out of one application to enter another.

Imprezz GST billing and invoicing software allow businesses, accountants, and freelancers to electronically file GST tax returns in less than five to ten minutes. It automatically adjusts the TDS rates, prepaid taxes, and losses and your income and calculates the taxes. No tax knowledge is required. The software offers complete data security. Some of the Imprezz system’s many capabilities include invoicing, customer support, record-keeping, quick payments, ledger update, payroll system, balance sheets, and GST returns filing.

How to Get Started with Imprezz? – Best Online Invoicing Software

Step – 1

Firstly, log in to Imprezz, the best online accounting software! And enter your mail address and a security password to complete this step.

Step – 2

Choose your business category and create your business profile. Imprezz has specially categorized small businesses, accountants, and freelancers.

Step – 3

Once you’ve created your profile, you are all in! Imprezz offers all its unique features under a single and easily understandable platform. You can start by creating invoices or business quotations. You can also start by organizing your finances or setting up your payroll system.

It doesn’t matter what accounting tasks you want to accomplish; everything is available in a single dashboard. You can link your bank account and start adding product or service information to the accounting database. It allows the software to manage invoice processing effectively.

Why Use Imprezz as a Small Business Owner or Accountant?

The nation-wide users of Imprezz accounting software perform various accounting tasks as per their business requirements. Some professionals use the software for income and expense tracking; wherein, some freelancers use it to create and send invoices. Most accountants use Imprezz to generate reports, manage the payroll system, and file GST returns. However, the software offers comprehensive invoicing and accounting features for freelancers and small business accountants. Here’s a breakdown of the Imprezz invoice generator software that can be of your help.

Sales

Imprezz accounting platform enables its users to easily create customer estimates by creating both unique and recurring invoices. The software allows you to manage credit card payments, customer information, and sales data. It continually keeps a record of your products and services.

As a user, you must have the customer and product information already configured in the database to create invoices or service estimates. Compared to other accounting platforms, Imprezz is easier to use and simpler in design, with various customizable templates that you can choose.

Accounting

Imprezz is one of the best online accounting software that simplifies accounting tasks for its users. It helps manage finances by effectively handling bank transactions. The software displays chart of accounts where you can either add or remove expenses and income. The tab for journal entries allows you to track each account over a specified period. Not many people find it challenging to get started with Imprezz accounting; however, the support team does a great job helping accounting toddlers get started with the software.

Purchases

Alongside managing accounting and sales tasks, Imprezz enables you to manage purchase orders by tracking each transaction. It helps keep digital copies of each invoice issued to your customers. You can easily manage the suppliers and the products and services you use from those suppliers; Keep a record of all the items used in an invoice tab. You can select the drop-down menu and easily choose vendors and products to add to your invoice.

Banking

Imprezz banking feature enables you to link your bank accounts. You can manage transactions while paying bills. The software currently allows business owners to manually import account transactions to connect their checking accounts and third-party banking applications.

Payroll

Imprezz accounting software now offers payroll management features to import employee data, timesheets, tax forms, and payroll tax data. The software provides comprehensive pricing plans that are inclusive of payroll and other crucial accounting tasks.

Reports

Reporting is one of the crucial tasks of small business accounting. Imprezz enables businesses to record the following business reports.

You can download or export reports to either retain or share with your tax department or accountant.

Third-Party Integrations

Imprezz brings various accounting tasks under a single platform by enabling integration. You can rid of implementing various applications or accounting software for different accounting functions. The integrated software allows users to access the Tally feature, purchase order management, import function, and more!

Should Freelancers Use Imprezz? – Best Online Accounting Software in India

Imprezz is highly recommended for freelancers in India. You can’t beat the inexpensive cloud-integrated software, especially if you’re starting your freelance business. Get it all started right from the beginning. Primarily, Imprezz will help you record all your business income and expenses under a single platform, and you can easily access these reports during GST returns filing period.

You can send alluring quotations to poach new clients and send invoices that can help market your newly launched product or services. Pay for the features that are useful for your business rather than wasting money on useless invoicing apps. Give it a try, use Imprezz accounting software for your freelance start-up, and see if it meets your business requirements.

Imprezz #1 Best Online Accounting Software in India

Imprezz is the pioneer of accounting software in India, helping professionals stay on top of business accounting and finances without expert accounting knowledge. It is one of the fastest-growing GST billing software that has evolved with the best accounting features and utilities. The software lets you create and send pleasing quotations and GST standardized invoices.

Imprezz is a simple billing software for small businesses, freelancers, and accountants, enabling them to track their expenses and manage inventory. You can easily share your business transaction data with the designated accountant. Implement Imprezz invoicing and accounting software to get a clear picture of your business operations and make better business decisions.

Conclusion

Modern businesses and professionals strive to earn more than just a modest income. If you are one of them, you need accounting software to avoid juggling between customers and employees. Implementing accounting software will save time and effort that goes into manual record-keeping processes. Investing in small business accounting software is one of the wisest decisions you can take as you start anew.

Finding an ideal and compatible accounting platform can be a struggle. We have launched Imprezz invoicing software after comparing our features with several other software out there in the market. We provide the best and unique features that are hard to find under a single software system. If you are looking for ideal accounting software, you are just in the right place.

Imprezz is one of the best free invoice software. We offer a 14 days free trial software program for small businesses, freelancers, and accountants in India. Login to get started right away!

Tally Integration

Bengaluru, India, November 6th, 2020 – Imprezz accounting software, the nation-wide leader of business intelligence tools, today launched the Tally integration feature – a first of its kind online integrated accounting dashboard, uplifting freelancers, solopreneurs, entrepreneurs, and small businesses in India. The technological advancements have made a virtual dream come true for businesses globally. Business accounting and corporate culture have witnessed a revolutionary change over the decade. It has primarily helped businesses sustain amid the on-going COVID-19 economic crisis across the world.

Despite the availability of a wide range of business intelligence software in India, businesses are hurt due to unsatisfactory accounting functionalities and solutions. Imprezz invoicing software was driven to bring about a real-time change for businesses to succeed in the long run. The software has bought in several updates in less than a month. From integrating purchase order management, improvising on import function to launching Tally integration, the software solely aims to provide intelligently integrated accounting platform for all businesses in India. It is undoubtedly a one-stop solution for all your business needs.

With Imprezz accounting software, businesses can now rid of manual bookkeeping tasks. Several business owners choose our software for their exceptional features and support system. The newly launched Tally integrations focus on enabling businesses to create and manage reports with zero hassles. Read further to know more about Tally integration on Imprezz.in. Know why Imprezz is a comprehensive solution over other ERP software. Streamline your business accounting workflow with India’s leading online accounting Platform. For any quarries, feel free to reach out to Imprezz support team. Our experts are ever ready to help you get through the hurdles of accounting.

Launching Tools For Tally

 “When spiders unite, they can tie down a lion – similarly integration of various accounting tools under a single platform can tie down business issues that are toughest of all”.

Every business operates with different goals. However, only a profitable business can sustain. Regardless of your business scale, you require an ideal business accounting software to keep track of all your transactions. Implementing a different set of business software can create chaos among you and your employees. A perfect solution is to switch to a platform that offers various accounting feature under a single database. It not only saves cost, but modernized technology is also well-organized.

Today’s automation helps business owners focus on the crucial business operation by enabling them to control accounting function in just a few clicks. Accurate finance reporting is vital for businesses to make appropriate decisions. It is where Tally plays a crucial role. But, can you handle all your accounting activities through Tally? It would be best if you had an integrated software to leverage internal data to support the processes of reporting. Integrate with most advanced and updated accounting software, Imprezz.in. Our integrated invoicing software enables you to access all your financial data to create customized accounting results concerning your business needs.

Imprezz is one of the best accounting software for MIS reports and utilities. The automation enables you to create custom reports under new formats by extracting financial data from the extensive database. Our business analytical solutions have outdone the basic ERP software in 2020. You can access financial data anytime, anywhere. Data accuracy and security is 100% guaranteed, which rids of the need to depend on externalized human labour or third-party accountants. You can create and customize accounting reports and spreadsheets with consolidated data. Let Imprezz work for you and instead save time and some extra money.

Imprezz Tools For Tally

Streamline Your Business Accounting Workflow with Imprezz Tool for Tally

Business accounting is a daunting task if done manually. The establishment of Imprezz software has helped businesses treat accounting hurdles effectively. The Imprezz Tally software has made it much easier for business to track daily transactions. Here, we have coupled some of the crucial benefits of exceptional Tally features on Imprezz.

1.      Automate Voucher Entries

In accounting terminology, a voucher is a document that contains details of each business transaction precisely. Imprezz Tally integration offers a unique voucher entry system that enables business owners to carry out various transactions in no time. The flexible accounting tool also provides customizable templates concerning individual business purposes.

2.    Interest Calculation

Various interest calculation methods make it harder for an accountant to create reports. With Imprezz, you can use multiple methods that are already allocated to each transaction. Once you have completed the calculations, a detailed report is generated automatically. These reports provide precise insights on an accurate balance amount to be received.

3.    Ledger Integration

The Tally tool on Imprezz is integrated with one of the significant accounting functions, ledger. It includes general ledger, sales ledger, purchase ledger under a single ledger. On Imprezz, you will find the ledger divided into four different groups that will help facilitate account management efficiently. The consolidated ledger function supports the simultaneous creation of records while you enter data.

4.    Track Individual Bills

Tally integration has made tracking both commercial and non-commercial bills easier for accountants and business owners. You can keep track of invoices, receipts, payments, settlements and much more without any inconvenience.

5.     Accounting Codes Substitution

Imprezz integration with Tally allows you to replace accounting codes, substituting regular accounts name. It facilitates complex ledger accounting systems. You can efficiently operate on Imprezz even when you are not aware of the codes.

6.    Audit, Budgeting and Control

Auditing with Tally integration allows business owners to manage limitless budgets and periods. You can track changes and correct the errors quickly. Alongside, the security levels offered by the cloud-based software enables a robust access control.

7.     Billing Information

Tally integration allows the businesses to manage billing information from top to bottom that is yet to be received or paid. It helps allocate payments related to bills and due dates. The software also helps bifurcate good clients from bad clients using billing information.

8.    Multiple Currencies Support

Several local businesses are likely to be involved in international transactions or might plan to expand to global markets. Thus, most business transactions also include multiple currencies. We all know how often exchanges rates fluctuate. It is difficult for businesses to maintain records under such circumstances. Tally integration instead helps manage foreign currency transactions with zero hassles.

Tally Integration on Imprezz

Key Features of Tally Integration on Imprezz.in

The Tally feature on Imprezz allows you to download the GST accounting data. You can export monthly invoice details in the Tally format in just a few clicks. It enables businesses to integrate all the necessary information; the site offers a GST Export option that allows you to download accounting files in Tally format for the desired accounting period. It, in turn, simplifies the process of returns filing and other accounting tasks.

Imprezz is one of the most extensively used accounting software in India. Imprezz integration with Tally is much more than just accounting. It is a perfect business management solution. It allows business owners to manage all their accounting tasks under a single platform with basic bookkeeping knowledge. Now save time with the user-friendly Tally integration on Imprezz.

Imprezz Accounting Software

About Imprezz.in

Imprezz.in is one of the leading accounting software in India. The accounting tool has been praised for its remarkable design and features. The company strives to revolutionize the scope of business accounting automation in India. The software offers comprehensive price plans with the prime motive to support small business owners, vendors and accountants.

Imprezz is an all in one, integrated software that offers business solutions to all your needs. The GST billing software provides a wide range of accounting operations. The company aims to provide accounting services that are a combination of easy-to-use invoicing functionality and GST compliance. The mission of the company is to revolutionize business operations in India by stimulating their productivity can cashflow management.

Media contacts

For India                                         Amit Mundra           0049 2735 776248      info@imprezz.in