Accounts and Records Under GST

Every registered person under GST must self-assess the tax obligations under section 59 of the CGST Act 2019. Taxpayers must file GST returns with assessed documents within the pre-determined tax period. The department of Goods and Services Tax (GST) in India looks into each compliance submitted on the government portal; examines, audits, or investigates each document filed by the designated taxpayer. The process of compliance verification requires taxpayers to remain accountable by maintaining accounts and records under GST.

Every business/taxpayer must record each transaction carried out at the principal place of business or taxable activity. Which company or registered person must maintain accounts and records under GST? What are the necessary documents listed under the GST regime? This article is a comprehensive GST accounting and record-keeping guide. Find out more in the segment below!

GST Record Keeping and Accounting

Real-time invoicing, and maintaining accurate accounts and error-free records are mandatory for every registered taxpayer under the Goods and Services Tax (GST) regime, section 35 (1) of the CGST Act 2017. Business owners must maintain these accounts and records at the place of business, as stated in the Certificate of Registration.

Accounting and Record-Keeping Rules

Rule (1): Registered Taxpayers Have Multiple Workplace

Taxpayer registered under GST can operate with more than one workplace. Business operations can be conducted from multiple locations. A company might have its branches in different cities or states. In such cases, business owners must install a designated accounting system for each workplace specified in the Registration Certificate. Implementing an online accounting software bifurcates record-keeping hassles by enabling a unified billing platform with multiple user access.

Contact Imprezz customer support team to know the perks of installing digital record-keeping and accounting system for your small business. Check out the software, the pioneer of invoicing and billing systems in India.

Rule (2): Recording Incorrect Entries

Taxpayers must pay attention to specific details while recording entries for bookkeeping. Every registered person must ensure each transaction reported either in records or ledgers are neither overwritten nor erased. Inaccurate entries must be fixed by replacing them with correct entries. In digital bookkeeping methods, business owners must keep a record of each entry deleted or edited.

Rule (3): Keeping Records in a Place Not Mentioned in the Registration Certificate

Sometimes, taxpayers subjected to certain circumstances maintain their books at a location not specified in the registration certificate. In such cases, regardless of the reasons, accounting books are considered to be kept by the person who owns that property.

Rule (4): Recording Files Electronically

Business can now maintain their accounts electronically over the online platforms. The Indian government is adopting digitalization as a step-by-step process. Records in the GST returns of each taxpayer is closely examined and validated by digital signatures. Online accounting enables data backup facilities; any lost record can be retrieved in a reasonable period. The business accounting data on the software is secured through password protection.

Rule (5): Producing Accounts and Records Before the Law

When required by the law, taxpayers must produce their accounting books before the government or enable access to the documents by providing passwords, etc.

Who Should Maintain Accounts and Records Under GST?

The (CGST) Central Goods and Services Act mentions that each individual, whether registered or not, must maintain accounts and records under Section 35 of the GST law. The list of individuals includes the following:

Warehouse owners are supposed to maintain accounts and records for the period during which warehouse is operational, and goods are stored in it can be recognized as an item. The accounts maintained must include all the documents and details related to shipment, transportation, receipt and disposal of the stored goods.

It is crucial to maintain records for any business or taxpayer; it helps assist physical verifications or on-demand investigations. Thus, a transporter’s responsibility is to keep accounts concerning the goods that are:

Transporters must also keep a record of registered supplier and recipient GSTIN number for each branch.

GST Accounting Rules for Business Owners, Operators and Carriers

Rule (1): Request for Registration Number by Unregistered Individual

Unregistered business owners who are liable to maintain accounts and records under GST must provide business activities information. The process of uploading business documents is done electronically over the GST portal by filing GST ENR-01. Once all the documents are thoroughly verified, the government issues a Unique Enrolment Number (UEN) to the designated business owner.

Rule (2): Requesting for a Unique Common Enrolment Number for Multiple Branches in More than One State

Suppose a transporter operates in multiple locations outside the state or UT (Union Territories) with the same Personal Account Number (PAN). In that case, he/she must request a Common Enrolment Number through form GST ENR-02. Any one of the GST numbers is given as the Common Enrolment Number after verifying all the details.

What Records Should be Maintained Under GST?

1.   Accounts of Stocks

Registered taxpayers excluding those registered under the composition scheme (composition dealers) are supposed to maintain accounts and inventory records of the goods that the concerned taxpayer delivers or receives. The inventory records must include necessary details under the GST law.

2.   Accounts Received and Paid

Taxpayers must maintain accurate records of accounts received and accounts paid along with all the adjustments carried out in this regard.

3.   Liability and Input Tax Credit (ITC)

Alongside keeping records of accounts received and paid, taxpayers must also maintain records of other accounting activities.

4.   Supplier, Customer and Warehouse Details

Registered Persons must also keep records of other details that include:

5.   Records of Goods Production

Registered taxpayers must record the data concerning the goods produced detailing the production filed monthly. The entries must include all the information regarding raw materials, services, wastage and other by-products used to produce goods.

6.   Records of Services Supplied

Registered taxpayers providing services must maintain the following accounts and records under GST.

7.   Records Related to Work Contract

Every registered person dealing with the implementation of work contracts must maintain the accounts that include the following.

What Are the Mandatory Accounts to be Maintained Under GST?

The Goods and Services Tax (GST) regime states that a registered taxpayer must maintain various adjustments like purchases, sales, stocks and other accounting activities, as mentioned in the article above. However, here’s a list of accounts that must be maintained by the companies registered under GST.

Accounting Entries Under GST

The GST Council in India has successfully provided clarity in accounting and bookkeeping, regardless of the challenges encountered in the returns filing process and operations. Several accounts are subject to GST. However, once you understand the accounting entries, it is much easier to keep records. Taxpayers can easily benefit from the tax regime if they know how to write off their taxes and claim Input Tax Credit.

Electronic Cash and Credit Ledger

Under GST, the taxpayers are subject to electronically maintain three GST ledgers that are automatically generated during online registration.

1.   Electronic Cash Ledger

The cash ledger under GST plays the role of an electronic wallet. Taxpayers use electronic cash ledger to process the GST payment of tax. The registered person has to deposit money into his/her cash ledger (wallet) to make payments.

2.   Electronic Credit Ledger

The credit ledger reflects ITC on purchases under the categories of IGST, CGST and SGST. The balance calculated from this ledger is the amount to be paid while processing tax payments like interests, fines, etc.

3.   E-Liability Ledger

The ledger reflects the total tax liabilities of the taxpayer after compensating for the specified month. Liability ledger is auto-populated.

Period for Preservation of Accounts Under GST

Taxpayers must preserve accounts and records maintained along with the invoices, credit/debit notes, bill of supply, delivery challans issued on stocks and details of outward supplies/inward supplies at least of a period of six months. The specified period is calculated concerning the due dates for filing annual returns under GST to which the aforementioned accounts and records relate.

These accounts and records must be retained in every relevant workplace mentioned in the Certificate of Registration. However, any registered person who is a part of proceedings or investigation of an offence must maintain records concerning the inquiry event, either for a year or six months, whichever is later.

Conclusion

Registered individuals and businesses must maintain error-free accounts and records. If taxpayers fail to maintain adequate records, they will be treated as unaccounted goods or services and tax liabilities will be calculated accordingly. The registered individual will have to pay the tax liability along with the fine amount. Rid of the hassles of maintaining records, stop wasting your time on manual accounts processing. Implement Imprezz GST billing software to stay GST complaint.

We offer a 14 days free trial software program for MSME in India. Log in to get started!

Funding Guide to Your Small Business IdeaBusinesses are primarily driven by the unique ideas that build them. However, the lifespan of a business is entirely dependent on its ability to sustain and grow. Which means it requires money; technical equipment, office space, website, initial financial security to pay bills and so on. You require at least a little bit of financing to get going with your small business idea. Therefore, understanding the concept of business funding for start-ups is significant to succeed.

Starting your own venture could seem like a nightmare, but it’s worth it! Studies prove that 94% of start-ups or new companies fail to sustain during their first year of operation. Coming up with a billion-dollar idea for a new company is cool. But, the journey from having a view to building a profitable business can be challenging. In that case, how to finance a start-up business? Funding mainly requires you to understand the nature and type of your business thoroughly.

Do you want to take a tour to find out how to get funding for a business idea? Congratulations! You are at the right place. This article is a part of our comprehensive guide on small business ideas – explore the small business funding guide to know the effective financing options recommended for Indian enterprises. From traditional bank loans, lenders to alternative financing methods here’s everything you ought to know to fund your business idea.

10 Funding Options to Raise Capital for Your Small Business Ideas

1.   Bootstrapping

Bootstrapping, also known as self-funding, is the go-to funding option for most business owners. It is proved to be the most effective form of financing a start-up or enterprise, especially while starting. Entrepreneurs prefer funding their enterprise by accumulating any personal funds they can find. It could be their savings, or a share from their family members/friends, credit cards, or home equity lines. Raising funds within your closed circle reduces the stress of paperwork or compliances.

Usually, it is ideal to utilize the money you have rather than borrowing capital. Experts suggest that business owners must continue to bootstrap until their venture turns profitable. It is an excellent approach towards potential success and rids you of the burden of paying interests. Moreover, people tend to work hard when their own money is on stake. When you want to scale your business at a later stage, you can consider pooling in outside sources for financing. All-in-all, bootstrapping can be the medium for expanding resources both financially and non-financially.

2.   Angel Investors

The second-best funding option for your new business is to approach angel investors. Who are angel investors? You can usually find this type of investors in networking groups where they selectively collect proposals for investing. These passionate investors are one’s that helped launch high-profile companies like Google, Yahoo and Alibaba.

Angel investors are more likely to invest in your small business, provided you approach them in the early stages of your enterprise growth. These investors throw themselves in risky scenarios while investing to obtain higher returns; expecting up to 30% capital gain. If you think this is an ideal business funding option, look out for some of India’s famous angel investors and draft a precise plan to pitch them.

3.   Venture Capitalists

Venture capitalists are an ideal funding option if your company requires higher capital sourcing. These investors are likely to dig deeper into your business plan before bringing a tremendous amount of money into your enterpise. Venture Capitalists prefer investing is businesses that stand out from the rest.

Alongside investing venture capital, they also expect a return of 3 to 10 times more than their original investment cost within a timeframe of 5-7 years. Quick tip? Better keep an exit strategy ready. Tap into your contacts to hunt for a venture capitalist; a cold approach is less likely to fetch positive results.

4.   Crowdfunding

Crowdfunding has gained immense popularity lately. The new funding option has been providing a financial boost for several businesses in India. It is a platform that allows businesses to pool some small investments from multiple investors rather than depending on a single source of investment.

You can benefit from crowdfunding by increasing your initial working capital required to start your business. Do read about various crowdfunding platforms for stock option before selecting one. Selective platforms might charge payment processing fees or demand business owners to uplift their financial goals to preserve the collected funds.

5.   Invoice Financing

Invoice financing is one of the best funding options to maintain the cash flow your business requires for daily operations. This funding option is also known as factoring, where your service provider lends you money from your accounts receivables that you can pay back when your customer scans the invoice. Invoice funding is a great way to bridge the payment gaps between your business bills/payments and your suppliers/contractors. It allows a growing business to accept new projects and provide effective results.

6.   Business Incubators & Accelerators

Considering incubators and accelerators to raise money for the business at an early stage is a good idea. These funding programs have been popularly helping businesses in India and are available in every possible city. Their utility is interchangeable despite the fundamental differences between them. They operate by providing training tools, business networks, and support for enterprise growth.

Incubators help nourish and aid businesses in standing out in the market place, wherein accelerators assist the business in taking a big jump that helps keep them running. These programs typically demand 4-8 months of commitment from the business owners. It helps develop great relationships with mentors, investors and other competitors.

7.   Partner Financing

The strategic partner financing is one the commonly known funding option. You can get a trusted partner interested from your industry to invest in your venture in exchange for exclusive access to your business data, products, items, distribution channels, sales or a combination of all these elements. Due to the commonalty, this funding option is usually overlooked.

You can also partner with another company that can boost your business growth. It is considered a risk capital that offers a share in sales; it can either be equity-based or commission-based. Partnering with large companies helps build a better network of clients, suppliers and provides access to great marketing programs.

8.   Bank Loans

Conventional banks in India offer business loans, provided you have necessary proof and records. You can easily avail these loans if adequate assets back your business. Banks usually provide various financing options; with an ideal business plan, you can quickly secure your funds by availing loan programs. What to do in case you are not eligible to request for a bank loan? You can always lean on microfinance funding to access financial services when you can’t rely on traditional banks. They have limited requirements whose credit ratings are not influenced by the banks.

9.   Government Programs

One of the most reliable funding options for entrepreneurs and start-ups in India are government programs. The Government of India launched a start-up fund project worth Rs 10,000 crore under the Union Budget to strengthen SME’s ecosystem in India. Further, the government also launched “Bank of Ideas and Innovations” to encourage innovative products and business ideas.

The government supports the “Pradhan Mantri Micro Units Development and Refinance Agency Limited (MUDRA)” to help spread the benefits to around 10 lakh SME’s in India. Under this scheme, business owners are provided with a MUDRA card post-approval of the loan amount request. It acts like a credit card through which business owners can purchase raw materials and cover other expenses.

In addition to central government schemes, the state government has also established various programs, Kerala State Self Entrepreneur Development Mission (KSSEDM), Rajasthan Start-up Fest, Maharashtra Centre for Entrepreneurship Development, so on to support small businesses. Besides, SIDBI – Small Industry Development Bank of India also provides commercial loans to the MSME sector.

Provided enterprise meets the eligibility criteria, government schemes and programs are the best funding options compared to the rest. It is vital for business owners to educate themselves about various government initiatives; research thoroughly about the Indian government’s Start-up India Action Plan. Recently, GOI announced a new program – “Atmanirbhar Bharath”, a package to combat the COVID-19 economic crisis.

10.   Quick Financing Options

Funding options for enterprises have increased drastically over the past decade. Apart from the popular financing option mentioned above, you can also try out other ways to raise capital. Although these options may not apply to all enterprise types, it’s worth exploring these options.

Product Pre-Sale

Selling your products before the official launch is an effective funding strategy. Sadly, not many businesses in India follow this funding approach. Some of the most popular companies worldwide follow this funding option to improve their cash flow and prep themselves for the consumer demand.

Asset Sale

Asset sale can be a daunting process in terms of raising funds. But look at the bright side, it helps meet the short-term enterprise requirements and finances. You can always re-purchase the assets once your venture becomes stable.

Credit Cards

Having a business credit is a boon; it is the best funding option that provides instant cash. If your new business idea doesn’t require a lot of investment, you can use business credits cards to cover your small expenses. However, beware of the interest rates and card costs. They can sum up into a large amount and accumulate in no time.

Conclusion

Finding the best financing option can be the most challenging part of starting a business. It takes a clear understanding of your business model to decide what option best suits your enterprise requirements. However, once you crack the deal, save some capital, get your loan approval, or outsource money from investors, you will likely see your business grow. Although it might take quality time for you to succeed in this journey, your dreams will undoubtedly turn into a reality. Finding allies along the road; friends, investors, capitalists will ease your burden.

Businesses in India must focus on their finances in their early stages and later. Is your small business ready to see the limelight of success? Implement an all-in-one business intelligence software that keeps you up-to-date and modern. You can always rely on Imprezz cloud-based invoicing software to streamline your small business accounting. The GST billing system will help keep your business GST compliant.

We offer a 14 days free trial software program for SME’s in India. Log in to get started!

Basics: Input Tax Credit - Comprehensive GuideGoods and Services Tax (GST), so far, is one of the most nuanced tax reforms implemented by the Government of India (GOI). The primary agenda behind introducing GST was to eliminate the rippling effects of various taxes applicable under the Value Added Tax (VAT), Service Tax, and Excise Duty. Since its inception, GST has introduced different tax calculation methods, including facilitating (ITC) Input Tax Credit under GST.

The constant flow of credits throughout the chain (from production to consumption) across the country is one of the prominent characteristics of GST. Under GST, ITC can be claimed regardless of the supplier’s location. This way, it is more convenient to access the purchase and sale of goods and services. Over the past few years, the GST regime has successfully built a unified tax system in India. Ever since understanding the concept of ITC has become crucial for taxpayers to stay GST compliant.

Previously, regular taxpayers were asked to follow “input credit rules”; wherein, businesses followed “VAT input credit rules”. However, this guide on Input Tax Credit will help you differentiate input credit and VAT input credit from GST ITC. This article is a part of our “Comprehensive GST Guide” – here’s everything you ought to know about Input Tax Credit Rules under GST.

Latest Updates on ITC as of 22nd December 2020

Changes Under GST ITC Rule 36 (4) That Were Made Effective Since 1st January 2021

The New GST ITC Rule 86B

Changes Under GST Registration Rule

What is the Input Tax Credit (ITC)?

According to Section 2 (57) of Model GST Law (MGL) and Section 2 (1) (d) of IGST ACT, ITC is defined as the tax levied on the day-to-day supply of goods and services that is either used or intended to be consumed by the taxable entity concerning the CGST and SGST Laws. The taxpayer can further subsume the amount of tax payable under Sub-Section (3) of Section 7.

In simpler words, Input Tax Credit defines that, when paying taxes on outputs, an entity can reduce the taxes to be paid on the inputs. ITC is the amount of tax reduced from output tax payable on account of sales.

Basic Obligatory Requirements to Claim ITC

Under ITC rule, there are specific mandatory requisites that taxpayers must adhere to claim Input Tax Credit. Here’s a detailed list of requirements that every taxpayer registered must follow to avail ITC:

How to Claim & Reconcile 100% ITC?

Claiming input credit varies as per the types of taxes that are applicable under GST. Goods and Services Tax consists of 3 types of tax calculations; CGST, SGST and IGST. Here’s how you can claim and reconcile ITC completely under these three tax forms.

Central Goods and Services Tax (CGST)

The central government controls CGST on transactions that occur within one state. The credit can be used to offset CGST liability. In case the taxpayer has any credits remaining, it can be used to offset IGST liability.

State Goods and Services Tax (SGST)

The state government controls SGST on transactions that occur within one state. The credit can be used to offset SGST liability. The remaining tax credits can be used to offset IGST liability.

Integrated Goods and Services Tax (IGST)

IGST is a single levy tax controlled by the central government on transactions that occur between states. The credit can be used to offset IGST liability. If credit remains, it can be applied to CGST liability first, and then SGST liability.

Utilization of Input Tax Credit

According to the GST rule 88A, a notification issued by the (CBIC) Central Board of Indirect Taxes and Customs stated that firstly, taxpayers must utilize the ITC available on their integrated taxes to pay off other applicable integrated taxes. The credits remaining can be used to offset CGST, SGST and UGST liabilities later. This rule is applicable only when the beneficiary ITC on integrated tax has been completely used before availing the ITC on CGST, SGST and UGST.

Documents Required for Claiming ITC

Any registered taxpayer is eligible to avail input credit based on the following documents.

Reversal of Input Credit (ITC)

There are certain circumstances under which taxpayers can reverse their claim for ITC. Here’s when taxpayers can do that:

What to Do When ITC is Reversed?

Here’s what taxpayers can do under circumstances where ITC is already reversed:

Ineligible Input Tax Credit – Blocked Credit Under GST

Taxpayers cannot avail the credit under the following cases:

How to Avail ITC Under Reverse Charge Mechanism (RCM)?

Taxpayers can benefit from the credit if the taxes are paid under the Reverse Charge Mechanism (RCM). When taxpayers pay on the reverse charge basis, ITC can be claimed in the same month in which the payment is processed. However, to avail ITC on reverse charge bases, it is necessary to meet the following criteria:

Time Limit to Claim ITC

ITC can be claimed either against an invoice or debit/credit note before the following time frame, whichever occurs first:

Conclusion

Filing tax returns has become one of the hassle-free accounting processes since the implementation of GST. Writing off taxes and availing credits is easier than ever. However, the mandatory laws and rules under GST have been pushing businesses and taxpayers to stay GST compliant. The number of registered taxpayers in India subsequently increased after the raise of the GST regime. The emergence of GST e-invoicing system and digital tax processes under GST has led to the evolution of accounting software in India.

Imprezz is the pioneer of small business accounting software that has helped various business sectors and taxpayers stay GST compliant. The cloud-based accounting system offers remarkable features for remote operations that enabled businesses to sustain during the tough times of COVID-19. The live version of Imprezz online accounting software allows business owners to control and share data access among ten different users. Imprezz GST billing software is just what your business is needs.

We offer a 14 days free trial software program for small businesses in India. Log in to stay GST compliant!

Which GST Compliant Software to Use for Invoicing?

Small businesses in India are increasingly transiting to the Goods and Services Tax (GST) regime. GST accounting is a more comfortable and cost-effective approach to all the indirect tax systems that previously existed in the country. Since the GST launch in July 2017, GST compliant software has become the most significant factor for the government and corporations. The recent changes enforced to counter COVID-19 economic crisis has helped MSME business owners to keep their accounts organized amid the tough times.

GST has been an evolving process; it has brought several benefits to small businesses by reducing tax calculation complexities, the introduction of digitalization and online portal for GST return filing and related processes. According to the recent survey carried out in April, there are around 13 million GST taxpayers; 6-7 million from B2B sector and 5-6 million from B2C sectors. MSME’s in India contribute about 8% of India’s GDP with 45% industrial output, 40% of exports and 40% of the total workforce.

The raising scope for GST has increased the demand for accounting software. With the advent of remote working culture due to COVID-19, small businesses now prefer cloud-based data access. Digital is the new convenient for solving accounting and billing problems. However, a large percentage of companies still rely on pen and paper for invoicing. Manual accounting offers a minimum understanding of business operations such as profits, account receivables, inventories, etc., learning the know-how of accounting software becomes complicated when business owners primarily rely on CPA’s.

Indian MSME’s must go digital. Using simple accounting software to manage accounting operations helps stay on top amid the cut-throat competition in today’s modern world. Implementing GST can be a daunting task for enterprises that do not rely on digital solutions; they might spend most of their time balancing their accounts and compliances. Worry no more! This article is a comprehensive guide on “GST Billing Software Feature”; here’s everything you ought to know about GST accounting and ideal invoicing software for your business.

What is GST Compliant Software?

GST billing software is designed and developed by various service providers to help taxpayers with real-time invoicing and return filing. GST software allows enterprises and registered persons to upload documents to the government portal automatically from the software. The software simplifies the tedious registration task of filing complex data with automation. It also helps taxpayers relate and understand the impending structure of GST.

GST software development companies are working hard on preparing accurate models for GST filling and invoicing. They are focused on providing hassle-free accounting experience by making it easier to under the filing process. They fasten the process of filing and offer complete access to the GST data, anytime, anywhere. Since government-mandated online GST registration and return filing, modern accounting software like Imprezz is designed with relevant and updated features.

Why Use GST Compliant Software for a Small Business?

Modern businesses are in a constant search for better online accounting software to do their calculations accurately. Accounting operations today involve managing various functionalities such as ledger, finance, inventory, tax calculations and precise presentation of all the above. To manage multiple accounting functions, enterprises must look for software that can perform all these tasks and calculate GST under a single platform.

SME’s spend a lot of time in manual compliance from invoicing to filing returns. Small business owners prefer doing it all by themselves. However, how helpful is that? Instead, it is ideal to implement the best GST accounting software, minimize the effort and time spent on compliances, and better focus on other business operations that matter the most. Here’s why you should use GST compliant software for your small business.

1.   GST Compliant Invoices

GST is a transaction-based tax regime; invoices issued under GST must meet the standardized requirements. The Goods and Services Tax Law define specific GST invoice rules and provisions; the necessary details must be recorded while creating invoices. Besides, the law states that different invoices must be issued as per the nature of their supply under GST. Issuing tax-compliant invoices is a crucial aspect of registered businesses; it enables the customer to avail Input Tax Credit (ITC) on their purchases.

The GST software has a built-in system to capture necessary GST invoice details. Alongside, it also provides an option to add non-mandatory information as per your business requirement. Smart software is also capable of understanding the nature of the transaction and auto-calculate the applicable GST rates. Ideal business intelligence software offer error-free invoicing and automation of recurring invoices.

2.   Hassle-Free GST Settings       

A small business GST invoice software allows quick tax settings with minimal efforts and time. Traditional or lifetime free GST billing software would ask you to configure the details; GTS rates, GSTIN for ledgers, etc. In case your enterprise offers hundreds of products, you might have to enter GST details for each product, this can be time-consuming and daunting as GST rates constantly fluctuate time-to-time. Traditional software does not support modernization, get rid of them if you are still operating under such a platform.

Modern invoice and GST software are designed to provide effortless experience; the amount of work you put in uploading 50 product entries or 500 entries is the same. GST intelligence software allows user to configure settings at the group level. For instance, if you have grouped 500 products with the same GST rate, you can change the GST rate at the group level rather than editing each product entry. This way, it is convenient and easier to update GST rates on the software.

3.   Alerts & Preventions

GST accounting and billing software offer one of essential GST features – prevention and alert capabilities. “Prevention is better than Cure” – Ideal software programs come with built-in capabilities that automatically bifurcates potential errors while recording transaction data and notify users through alert messages.

Smart business intelligence software like Imprezz can read details like price, status invoice match, record type, etc. On a significant level, it can also read party ledgers, products, etc. The software accordingly anticipates the right value/type of supply. In case users record incorrect tax type, the software automatically corrects it and sends an alert message. It results in error-free GST invoicing and tax returns filing.

4.   Accurate GST Returns

Small business accounting software helps create GSTR-1 and GSTR3B Forms in Excel and JSON format, which can be uploaded to GSTIN system/GST portal directly from the software. The built-in software intelligence helps achieve 100% accurate GST annual returns with the click of a button. It is what Imprezz is popularly known for in India; the “Avert-Detect-Correct” technology.

The software adheres to the parameters of updated return filing requirements. It can also detect transactions that provide inadequate information or errors to help upload correct files for return filing. GST billing systems analyze 100% of the transactions to ensure accurate and real-time return filing.

5.   Auto-Update GST Changes

In the past three years of GST implementation, there have been several changes in GST rules and laws. During COVID-19, government-provided several relaxations to the taxpayers by making amendments in the GST ACT. Changes in the GST regime can be as small as tax rate changes or can size up to changes in the entire return format.

GST billing software like Imprezz is highly flexible in terms of adapting to these changes. It allows the user to change the price rates on their own rather than waiting for product updates. However, it also supports product update feature, which is necessary to keep the overall GST accounting operation auto-updated.

Which Is the Best GST Invoicing & Billing Software in India?

Imprezz is the pioneer of Indian accounting software for MSME. The software company has seen remarkable growth in the past few years of establishment. Imprezz takes pride in being #1 billing and invoicing software in the country. The software has been helping several medium and small businesses to grow while they stay GST compliant. Managing GST compliances in Imprezz is much easier and faster compared to other conventional software.

The GST return filing process seems smooth and efficient after implementation of Imprezz accounting system. The software is user-friendly and does not require more than three to four steps to complete recording an invoice or filing returns. Here’s what you can do with Imprezz business intelligence software.

Imprezz #1 GST Billing Software: Features – Overview

Implementing a standardized GST billing system makes establishing a new business easier and hassle-free. Imprezz eliminates the tax calculation confusion and makes billing easier with remote data access. Log on to the official website to check the most reasonable offers exclusively designed for small businesses, entrepreneurs, freelancers and CA’s.

Conclusion

Implementation of GST in India has reduced the complexities of accounting operations for business owners. The centralized tax system has opened doors for several entrepreneurs with small businesses ideas to grow amid the though times of COVID-19. GST provides business owners with the ability to retain accounting data in e-invoices and tax reports which simplifies the management of business tax needs with GST

Imprezz GST compliant software is the best fit for all your accounting requirements. It helps you manage your taxes and report accurate tax data on time. It is integrated with various accounting functions primarily focused on business mechanisms, processes, and tax automation. Use the customizable GST software as a marketing tool to help your business grow alongside staying GST compliant.

We offer a 14 days free trial software program for MSME in India. Log in to stay GST compliant!

Basics: Time, Place and Value of Supply Under GSTThe Goods and Services Tax (GST) regime has subsumed all the indirect taxes in the past few years of its successful implementation. However, the new tax calculation system has streamlined indirect taxes. The government has unified the current and previous tax systems by introducing “Supply Under GST” – Time, Place and Value of Supply. GST is classified into three types, namely, SGST, CGST and IGST. Taxpayers can apply GST charges on their e-invoices based on this classification. Under GST, “Supply” is primarily enforced by the government to help taxpayers determine whether a particular transaction falls under SGST and CGST (intra-state transactions) or IGST (inter-state transactions). The GST regime has established specific rules and provisions for determining the time, place and value of supply. This Comprehensive GST Guide is a key to understand the concept of “Supply” under GST. Being aware of the different supply types will enable you to issue GST compliant e-invoices and accurately file your GST annual returns. You can also use Imprezz business intelligence software to create GST compliant invoices and file your returns with a click of a button.

What Is the Meaning of Supply Under GST?

As per the GST regime, Supply is an event under which taxes are charged. Any transaction of goods/services is considered as a supply by the government when an event meets the following criteria.

What Are the Types of Supply Under GST?

The supply of capital goods and services under GST is broadly classified into two main categories – Taxable Supplies and Non-Taxable Supplies. Further, it is classified into different sub-categories in accordance to the nature of supply.

1.   Taxable Supply

Goods and services supplied under GST are termed as taxable supplies. Registered taxpayers can claim Input Tax Credit (ITC) under GST on the purchase of taxable goods or services.

Supply of any goods and/or services that incur a GST rate higher than 0% within India’s territories is termed as a regular taxable supply.

Supply of any goods and/or services that incur a 0% GST rate within India is termed as nil-rated supply.

Supply/Export made to an SEZ or consider deemed exports; applicable GST rate on these supplies is 0% (i.e., the rates applicable becomes zero) even though they incur a tax rate higher than 0% when sold within India. This category of supply is known as zero-rated supply.

2.   Non-Taxable Supply

The supply of goods and services that is not leviable under the GST Act is termed as non-taxable supply. Non-taxable supplies are either exempt goods or do not qualify to claim Input Tax Credit in GST.

The supply of exempt items or services that do not incur GST charges despite being under the purview of Goods and Services Tax (GST) is termed as exempt supply. A registered person cannot claim ITC on inputs that fall under exempt supply.

Supplies that are not subject to GST; it refers to the supply of items that fall outside the purview of the GST law. Note: Sale of goods from a non-taxable region to another without entering Indian provinces, stored goods sold to consumers before they pass clearance for consumption, and sale of goods related to foreign sales should not be considered as a Supply.

Components of Supply Under GST

Supply under GST is considered as a taxable event that helps determine and charge tax rates. The concept of supply can be divided into three sub-topics namely;

It defines the moment when a particular transaction of goods or services are supplied. When a supplier is aware of the transaction time, it helps determine when the associated GST payment of tax and GST return filing are due to be paid.

It defines the place where a particular transaction of goods or services is supplied. The location helps determine whether the transaction is an inter-state supply, an intra-state supply or an external trade; enabling taxpayers to understand the type of GST associated with the transaction.

It defines the value of a particular transaction of goods or services supplied. Determining the supply value helps calculate the amount of tax payable. If the supply value is incorrect, the tax rate charged on the invoice will also be wrong.

Time, Place & Value of Supply Under GST: Briefly Explained

1.   Time of Supply Under GST

Section 10 (Chapter 5), CGST (Central Goods and Services Tax) Act 2017 defines the time of supply; the section states that the leviable tax rates entirely depends on the timing of the supply of goods and services. In simpler words, the taxable person is supposed to pay GST when the goods and services are supplied. Under the GST Law, the provisions concerning the supply of goods are different from that of the supply of services. Here’s what you need to know about the differences.

Time of Supply of Goods

The time of supply of goods is considered the earliest of the following dates:

Time of Supply of Services

The time of supply of services is considered the earliest of the following dates:

Time of Supply Under Reverse Charge

In the case of a Reverse Charge Mechanism (RCM), the time of supply to the service recipient is the earliest of the following dates:

As of 11/15/2017 “Date of Payment” does not apply to goods and applies only to services. Notice No. 66/2017 – Central Tax

2.   Place of Supply Under GST

The role of place of supply in the GST section is very crucial. It helps determine whether the sale of goods or services carried out falls under inter-state or intra-state supply. As mentioned above, inter-state supplies attract IGST (Integrated Goods and Services Tax), while the intra-state supply attracts either CGST (Central Goods and Services Tax) or SGST (State Goods and Services Tax). Chapter 5 of the IGST Act clearly defines the place of supply under GST.

Place of Supply of Goods

Place of supply of goods usually means the place where the goods are sold or supplied; it is where the ownership of specific goods is changed in exchange for money or considerable reward. In case there is no movement of the goods, the goods’ location when delivered to the recipient is considered the place of supply. If the delivered goods require assembling and installation, the place of supply is where the installation is done.

Place of Supply of Services

In general, the place of supply of services under GST means the site where the services are sold or supplied. In case specific service is provided to an unregistered seller whose location cannot be tracked, the service provided area will be considered the place of provision for the supply of that service. The GST regime has set out some special provisions to determine the place of supply for the services mentioned below:

Considering immovable properties, the provision for place of supply of service is the location of the property itself.

3.   Value of Supply Under GST

Section 10 of CGST (Central Goods and Services Tax) Act 2017, defines the value of supply as the concept that evaluates the cost/price of the goods or services supplied. It is the final component that helps determine the applicable GST rates of an item or service. Valuation has a significant impact, as GST is collected based on the value of goods or services. Generally, under GST, for tax collection, the transaction value of a supply is taken as the bid’s actual value. However, here are some of the effective methods used to determine the value of a supply of goods/services.

Conclusion

Time, place and value of supply are the three major components of the GST regime that determine which of the three GST rates (CGST, SGST and IGST) apply to the supply. Lack of understanding might lead to the issuance of incorrect invoices that might reflect on GST return filing. What to do if you are an accounting toddler who doesn’t understand the complexities of tax calculation? Implement Imprezz invoicing and billing software to rid of the hassles of GST accounting. We offer a 14 days free trial software program for small businesses, chartered accountants, and freelancers in India. Log in today to know more!

How to Come up with Hundreds of Small Business Ideas?“Choose your dreams over your fears”. Starting your own business can be a daunting task. Yet, given an opportunity, most people in their 20’s are likely to become entrepreneurs. According to one of the recent studies, 39% of employees working in corporate jobs aspire to build their own venture. Do you want to be your own boss? If yes, you are in the right place. This article is a part of our comprehensive guide – “small business ideas.”

Coming up with new business ideas can be as easy as icing on the cake or almost impossible. Thinking innovative is not an innate ability; it is a skill that one can develop over time with learning experiences and practices. With increasing researches on creative thinking and innovation, people can now learn quickly through applied examples. One of the best ways of finding business ideas is practising and making conscious efforts to recognize peoples’ problems and identifying the means to solve them.

What’s stopping people from starting their own venture? Well, the reason for failing to start is the lack of having a great business idea. Not many people are aware of how or where to start. Knowing where or how to look enables you to spot ideal small business opportunities and ideas. Generating a business idea need not be difficult. This article will help you understand how to develop new business ideas to make money and the science behind it.

Brief Bit of Science Behind Innovative and Creative Thinking

Over 100 billion neurons in a human brain are connected, forming a network called the nervous system. It enables us to make decisions, feel our emotions and environment, and controls our body. The neuron connections largely influence what we think, the way our thoughts process, every feeling, memories, and sensations. It is noteworthy that each human is born to reconnect these connections and build new ones, regardless of age. Neuroscientists have termed this phenomenon as “Plasticity”.

The human brain becomes more flexible at building new connections or reconnecting old ones over time; with new experiences, environment and behavioural changes. As people age, they often work less. Staying less active in our heads leads to forgetting things, giving up on the habit of forming new neuron connections or having firm control over the body. Thus, the simple hack to thinking sharp is to practice consistently. Longer you keep your brain cells active, the easier it is to come up with new ideas.

Creative Thinking is a State of Mind

Several authors have published books on the essence of having an ideal state of mind. It provides us with the wings to think in new dimensions; widening the horizons of our thoughts. When in the right state of mind, we are open to new experiences, experiments and exploration. It enables us to develop new ideas over time. Our mistakes also play a prominent role in helping us think in the right and new direction.

The environment in which you spend most of your time either contributes or destroys your ability to think of new ideas. Spending most of your time in a stimulative environment strives your brain to explore higher limits of your potential. Sometimes we also come up with innovative thoughts motivated by something that already exists. Thus, it is vital to interact with good ideas from multiple people through books, online platforms, and other means of communication. “Interconnectedness is the key”.

How to Generate Small Business Ideas that Can Turn into a Million-Dollar Start-Up?

1.   The solution to an Existing Problem Can be Your New Business Idea

Every successful business is a solution to a specific problem. Thus, the best way to develop a new business idea is to find a problem that you would love to solve. It need not be the more prominent solution; you can start with something small. Several everyday products that you have grown used to were invested in solving a problem. You can come up with hundreds of small business ideas if you get good at identifying problems. What’s frustrating you now can be your million-dollar business idea.

2.   Solving Problems that May Exist in Future

Solving futuristic problems can be a great start-up idea. Consider Elon Musk, his inventions like Solar City, and Tesla are ideal solutions to what might be a problem tomorrow. For instance, Tesla Motors are designed to fight fossil fuel scarcity which we may face in days to come. Taking the initiative to fix something that is yet to happen provides room to innovate and gives you an outstanding market share. If you feel deprived that your idea doesn’t have an ideal market place, know that you might just end-up creating one.

3.   Recognize & Reorganize the Evolving Needs

Thinking ahead of the curve is also a great key to coming up with your small business idea. Physiological needs (food, water, shelter and so on) and emotional needs (pride, greed, envy and so on) stand the same. What keeps changing are the products and services that fulfil these basic needs. These products and services are also the easiest to market. For instance, CDs still exist in today’s market, but it is more convenient to store data online on cloud storage. Selling cloud storage is effortless due to the its demand out there in the market. Small business ideas that can fulfil current needs can go from zero to million dollars in no time.

4.   Help People Save Their Money

The best way to succeed as a business in India is to develop ideas that help people save money. Indian customers choose quantity over quality. They are likely to settle for less quality and buy a cheaper product than pay more for quality. Unless people are making hundreds of dollars, buying luxury is not an option for everyone. If you can think of anything that can save people’s money, whether new or not, you have an excellent chance to sustain in the market.

5.   Be the Business that Provides a Hassle-Free Lifestyle

Generating new business idea doesn’t necessarily mean inventing a new product or service. You play with ideas that already exist; provide a new feature or introduce a unique benefit that can make daily chores seem much more effortless. There are several small ways through which you can make life easier for yourself and others. Let that means fuel your new small business idea. Start looking for things around you. Question yourself, could that be easier or more convenient? Is there any way you can make it more pleasant to use or less stressful? Even the tiniest change can help create a great product.

6.   Turn Your Hobby or Passion into a New Business

Think of ways you can convert your passion or hobby into a business. It can be your life-changing business idea as you are already good at what you have been doing. Starting with something you already know can be intimidating; you will also enjoy running your business. On the other hand, think twice before you start, you might as well lose interest in your hobby as you will have to do what you love to meet customers’ demand. Do not end up wanting to find a new hobby instead.

7.   Ideas that Appeal to a Base Emotion

Humans tend to make decisions based on their emotions. It also includes our choices to buy a product or service. Just think of services like pedicure or waxing in saloons. Is having your nails buffed or legs waxed necessary for survival? Several products like hairspray, dry shampoo, salt spray and many others are still able to exploit our base needs successfully. Products these days play with our seven deadly sins (Pride, Envy, Lust, Greed, Gluttony, Sloth, and Anger). If you can pick on that, you will understand how advertisements work.

8.   Get Inspired from Others’ Small Business Ideas

There’s nothing wrong in getting inspired by others’ ideas. As long as you can add value to it, you can always provide one of its kind to your customers. Albert Einstein once quoted, “Creativity is knowing how to hide your sources”. If you come across an idea that you think is ideal for you to build on, go ahead and do it. It saves you a lot of time; you can instead focus on planning and executing your final product.

Conclusion

There are several ways to come up with excellent business ideas. Hopefully, the pointers mentioned above were helpful to you. Generate new ideas or improvise what already exists. Once you find a solid business idea, check out our blog post – “Small Business Checklist – Steps to Start a Small Business”. Imprezz is a small business accounting software, helping business owners in India stay GST compliant. Digitalize your small business with Imprezz GST invoicing software.

We offer a 14 days free trial software program for SME’s in India. Log in to know more!

COVID-19 Small Business GuideThe impact of the COVID-19 pandemic has transformed the way businesses operate around the world. The current pandemic is no different from the past; resembling the historical uncertainty index and its economic impact. While few small businesses are striving hard, many are creatively rediscovering themselves as explained in this COVID-19 small business guide. Although switching to an online mode is not feasible for everyone, most businesses find innovative ways to advance their operations to fight the pandemic technically.

On the contrary, several businesses failed during the tough times of coronavirus lockdown. They were unable to replicate their previous working models or move in a new direction, despite the availability of remote working mediums, they shutdown. Small and medium businesses in India must align their operations with the primary mission. What works best for an organization can be drawn depending on its value, customer demand, and work culture.

The Indian government implemented social distancing, regular usage of masks in public places, limited storage capacity, and several other changes to ensure people’s safety across the nation. These changes are daunting and confusing, especially for struggling businesses. Since the government has lifted the lockdown, companies need to ensure their employees’ and customers’ safety and protection from the virus.

Sustaining an existing business or starting a business can seem a bit overwhelming during the COVID-19 global pandemic outbreak. Goods news? Imprezz GST billing software is here to help. Here’s the “Business Survival Guide for the COVID-19″ to help you learn everything you ought to know to successfully navigate your business while facing the complexities and impacts of coronavirus COVID-19.

Impact of Lockdown on SME’s in India – Small Business Problems and Solutions

Small businesses in India employ about 110 million people across the nation. According to McKinsey’s report, 25% of the 63million SME’s are likely to fall behind due to the prolonged lockdown. The consumer and retail industry experienced about a 25-30% decrease in production during the second half of 2020. It was mainly caused due to the disruption in China’s supplies, production shutdowns in affected countries, cash flow restrictions, and decreased economic activities.

Likewise, the manufacturing sector’s production rate, including electronics, textiles, pharmaceuticals, and automobiles reduced by up to 50%. The higher number is mainly due to extreme reliance on raw materials, production, and auto industry demand from china. It has placed several lives at stake. If SME’s in India fail to build resilience or adapt, it might result in millions of people losing their livelihoods.

Challenges for Small Businesses

SME’s are facing a various host of threats for survival. Some sectors like travel, accommodation, food have suffered more than others. The wise strategy would be to go through the four-stage process: shut down, supply chain disruption, declining demand, and recovery. Although businesses have been witnessing the severe effects, none know how long the crisis is going to last.

Below mentioned are some of the crucial business challenges small business owners face while transiting from closure to recovery.

1.   The decrease in Demand & Liquidity

Demand has collapsed for SME’s and Entrepreneurs regardless of the industry type. Moreover, payments from customers have slowed down on orders already received. It is important to note that SME’s have small cash reserves. In this case, they shut down first in the vent of liquidating stocks. Businesses involved in international trade, relying on US dollars are more vulnerable than others.

2.   Input Access & Inventory Management

SME’s import most of their inputs from abroad. It is why the supply chain is long and complicated. The collapse in orders, inputs, and raw materials in other affected countries can complicate the supply chain for SME’s India.

3.   Work Environment

SME’s in the manufacturing industry can’t remain open while operating in a confinement situation. Factory floors are not designed for social distancing. Factories shut down led to a mass migration of workers. Many factories lost their employees, and it can be challenging to re-group them all.

4.   Political Uncertainties

The pandemic crisis has led to rapid changes in government policies. It is not a feasible option for SME owners to create a crisis team that can track each policy change; they usually work alone. Frequently changing, uncertain policies have resulted in supply chain disruption that leads to enormous responsibilities.

5.   Emergency Support System

Most SMEs operate either informally or on the edge of the formal economy. They barely seek government support or participate in supportive government networking. However, during any crisis, it is the government that renders support. In such a scenario, it is difficult for the government to reach out to these businesses and find ways to help.

Survival Strategies for Businesses – COVID-19 Small Business Guide

India lifted the lockdown quite early to cope with the economic crisis caused due to COVID-19. Although everything is now back to normal with states re-opening completely, there are various precautions to consider. Businesses must adhere to guidelines and steps to protect their enterprises. One way to successfully secure businesses amid the pandemic is to plan essentially for survival.

Here are some of the significant steps small businesses must follow to navigate their ways towards success and survival.

1.   Focus on Finance

Business owners can make financial decisions only when they have an accurate picture of the cash flow. The decisions must be primarily driven by customer and small business accounting data. While taking any decisions to fight against COVID-19, it is recommended that business owners take financial assistance from an expert to secure the enterprise financially. Businesses facing financial problems must lookout for online resources that can assist with their cash flow.

2.   Real-Time Custom Reporting

Although it may seem complicated, it’s worth it! Generating financial reports and having all-time access to data unique to your business requirements is vital while fighting crisis like the pandemic. Rid from accessing data through multiple excel sheets, manual data review, and a bunch of manual reports. Spend time effectively by making data-driven decisions. Install Imprezz online accounting software that enables you to generate reports directly within the system.

3.   Leverage the Free Marketing Opportunities

Most small businesses are drastically trimming their budget on marketing. Instead, the best economical option is to explore free online marketing resources. In today’s digital world, spreading brand awareness and value-added messages establishes stable sales. There are various marketing mediums such as social media platforms, lead generation platforms, blogs, content marketing tools, email marketing tools, and more that helps build ideal customer relationship.

4.   Build/Re-Build the Eco-System

COVID-19 pandemic has increased the need of guidance for business organizations more than ever. SME’s including government enterprises require assistance. ITC’s institutional strengthening teams usually connect trade promotion organizations worldwide to share their best techniques in practice, along with emerging resources for small businesses. Businesses can learn from each other and grow stronger together in these challenging times.

5.   Alliances and Value Chains

Businesses involved in the entire value chains are supposed to work together to restore global trade. Have more significant alliances among each other and consumers.

How Can Financial Service Providers Help SME’s Re-Discover Themselves?

Financial Service Providers (FSPs) offer financial services; it encompasses a broad range of businesses that include credit unions, money management, accountancy companies, investment funds, and more! They play an integral role in the financial life-cycle of the enterprises they serve. FSPs have a relatively closer relationship with SME’s in India. They are positioned to help small businesses adapt to the new reality, implement changes, and restart with new business strategies.

Financial institutions like Imprezz accounting software company enables small businesses to grow successfully. It provides mediums for digital payment, business education through blogs, and mentors business owners through 24*7 customer support. Since its inception, Imprezz has helped several small businesses in India expand their reach and adapt the best strategies and practices. Implement Imprezz accounting tool to build financial health and resilience.

Conclusion

Sustaining a small business amid the global pandemic is tough. Small business owners will have to be flexible, focused, and disciplined. It is vital to ensure safety measures among both employees and customers. It is going to get more complicated in the days to come. With the drastic decrease in business profits, it will get more challenging for businesses to cope with economic uncertainties. Business owners must instead focus on the things they can control and ignore the rest. With the right systems and resources in place, businesses will all be able to successfully meet the biggest challenges for small businesses.

Imprezz provides a comprehensive 360-degree view of business performance, enterprise education, client engagement, and create credit and risk analysis tools to support SME’s in India. It helps your accounting team make the best possible decision to cope with the COVID-19 crisis. Our software is customizable as per your business requirement. If your business is suffering from any financial challenge, feel free to contact our customer support team. Work safe and remotely with Imprezz online billing platform.

Hopefully, our COVID-19 small business guide was helpful for you. We offer a 14 days free trial software program for small businesses in India. Log in to get started!

Subscription Billing Software - Definitive Guide

Businesses today are still unaware of the term “subscription bills.” However, the concept of subscription billing is not entirely new. It is one of the billing methods that businesses use to charge their customers when processing transactions. Although the idea of subscription billing software roots in earlier times, companies have recently started recognizing the need to issue bills consistently.

Today’s service-oriented digital world has increased the scope of the subscription billing system. Businesses, organizations, and people are slowly leaning towards online subscription platforms for media, entertainment, and more. Most enterprises prefer subscribing to access the latest content instead of wasting money on products that soon become obsolete. Thus, subscription billing business models have boomed recently.

The subscription billing system offers several benefits for both businesses and customers. The user interface of the subscription billing system is simple and easy to navigate. The software enables users to predict the accounts receivables from a company or customer and the number of bills issued in a specific accounting period. In turn, subscription helps attract and retain customers over the long run, irrespective of the business sector or market.

What Does Subscription Billing Platform Mean?

Subscription billing software is a multi-purpose billing system that enables businesses to manage recurring payments, subscriptions, and automate invoices to customers. It is a platform that helps bridge the gap between your products or services and the online payment gateways. Subscription billing allows you to issue e-invoices regularly as per your business requirements.

What is Recurring Billing System?

Recurring bills are the invoice bills issued to subscribers (customers) frequently instead of one-time billing. The billing system is usually used by digital service providers, anything from music apps, magazines, entertainment apps to customer relationship management solutions that feature recurring bills. Recurring billing models offer pricing model management (scale-based or volume-based), billing cycle (monthly, weekly, etc.), automatic billing model, and batch processing.

What is Subscription Management?

Subscription management deals with managing subscribers and their preferences throughout the cycle. The regular system enables you to store necessary information such as the catalog, prices, subscriber’s data, add-ons, subscriptions, transaction history, billing cycle, and more. However, SaaS billing software enables you to perform complex tasks such as experience management, event pricing, charges, pay upgrades, downloads, and cancellations throughout the subscription cycle.

As explained earlier, it is evident that both subscription management and recurring billing go hand-in-hand. In this article, you will understand how creating invoices can result in far-reaching consequences in terms of the revenue recognition and generation process.

Why Should Small Businesses Use Subscription Billing Software?

Hassle-Free Subscription Management

Providing customer services, along with subscriptions, can be challenging for small businesses. Keeping track of add-ons, cancellations, updates, and other changes can be frustrating. The good news is, a subscription billing software does meet these ever-evolving customer preferences with a click of a button.

Pro Pricing Plans

How do you know if the product price is overvalued or undervalued? It would be best to try various pricing plans to understand what works best for you and your customers. The data-driven approach towards pricing enables you to try multiple pricing options. You get your ideal pricing plan sooner by trying out the odds, by removing, adding, bundling, or customizing the plans.

Access Data at Your Fingertips

Subscription billing software provides smart dashboards with KPI’s (Key Performance Indicators) that helps manage executive, sales, marketing, and financial functions. The system offers valuable insights drafted from the metrics that help make data-driven decisions.

Enhanced Customer Retention

The billing process primarily influences customer retention. The built-in software capabilities like voucher management, variable billing cycles, pro-rata billing, and multiple payment methods enhance customer retention.

How to Fast Track Your Business with Subscription Billing Software?

Effectively Manage Your Subscription Business in all Aspects

Simplify your business with the customization and unique features offered by subscription management software

Automate Subscription Billings & Payments

Getting paid instantly has become a no-brainer task with cloud-based integrated systems. Receive your payments on time by automating your subscription billing system.

Receive Instant Payments & Late Fee Notifications

Track Progress & Develop Real-Time Reports

Effectively track the progress of your subscription business by creating various customer reports. Subscription billing enables you to generate reports, outstanding invoices, paid bills, invoice aging that streamlines customer management.

Utilize Powerful Invoicing Features to their Full Potential

Recurring Billing and subscription software enables efficient payments. They offer various features that help customize invoices as per the business requirements.

How Does Imprezz Billing Platform Enable Subscription Billing?

Imprezz is cloud-based billing software that enables small businesses to implement and manage complex subscription models. The platform is agile and customizable, making it easier to adapt to any business or pricing model as required. The uniquely integrated invoicing and billing platform provide custom data to manage all sorts of financial services.

The live version of the software is a multi-user billing system that helps share data access with up to 10 employees. It helps effectively manage various aspects of subscription billing under a single unified platform. Implement and manage multiple subscription pricing models simultaneously while setting up the custom billing cycles and pricing models. The configuration rules help automate updates, cancellations, demotions that help demonstrate a well-designed subscription system.

Conclusion

Implementing subscription billing software mainly provides security for the transaction. Why choose the Imprezz billing system for your business? Imprezz offers 24*7 customer service and support. It is one of India’s most reliable software that helps companies become the leaders of their respective industries. It is an all-in-one subscription suite.

We offer a 14 days free trial software program for small and medium businesses in India. Log in to get started with subscription billing!

GST Billing Software - E way BillsWhen a transporter wants to carry goods from one place to another, he needs to keep the e-way bills. Also need to meet certain conditions.

What is an E-Way Bill?

E way bill stands for Electronic-way bill. The e-way bill portal can generate an E way bill and is used when the goods have to move from one place to another. There is other e-way bill software that helps to generate the bill. If the value of the transport goods of a registered person exceeds Rs. 50000, then the person needs to carry an e-way bill. The e-waybillgst.gov.in can generate an e-way bill. The other means to generate an e-way bill is through an android application, SMS, or a website.

When the e-way bill generates, there is a unique e-way bill number associated with the bill. This number is available with the recipient, transporter, and supplier.

Conditions to Generate E-Way Bills

There are different conditions to generate e-way bills. Thus, a common portal generates the bill. There is a specific type of goods for which we need to take the e-way bill. Whether the consignment value is more or less than Rs. 50,000.

The Conditions Are:

Who Needs to Generate an E-Way Bill?

Three main parties need to generate an e-way bill.

1.   Registered Person

The GST registered person has to generate an e-way bill if the consignment value is more than Rs. 50,000. The movement of good can be from or to a registered person. If he wants to carry an e-way bill with consignment having a value less than Rs. 50000, he can do that.

2.   Unregistered Person

The unregistered person also has to generate an e-way bill.  If an unregistered supplier delivers goods to a registered person, the receiver must check it as if they are the suppliers.

3.   Transporter

If the supplier has not generated an e-way bill, then the only transporter has to generate it. Anyhow, transporters need to carry e-way bills carrying goods via rail, road, air, etc.

These people can use GST e-invoice software to guide and tell all the necessary conditions required to generate an electronic-way bill.

Conditions Under which E-Way Bill Generation in Not Required

There are various conditions when there is no need to generate an e-way bill. They are:

Rules to Generate E-Way Bills and Its Implementations

Every state has different rules for the electronic-way bill and its implementation. The e-way bill generation started on 1st April 2018. There is a rapid increase in the interstate transportation of goods. There is an excellent response to the e-way bill from the states and union territories. They also joined this league of generating e-way bills. Few states/ union territories have given some relief and exemption from e-way bill generation.

The exemption is based on the monetary limit and some specific items. For example, in Tamil Nadu, there is no need to generate an e-way bill if the monetary value of the items is below Rs. 1,00,000. More details are there on commercial tax websites for states/union territories.

You can refer to Imprezz GST software or any e-filing software to see the limits and other exemptions.

Process of Generating an E-Way Bill

There is E-invoicing software that can generate an e-way bill. An electronic-way bill portal can also generate the bill. You have to log in to the portal and follow the necessary steps.

  1. Go to the e-way bill system.
  2. Log in by entering your login credentials, username, password, and captcha code.
  3. Click on the e-way bill dropdown option on the left side of the dashboard and select generate new.
  4. Fill in all the details that you see on the screen. Like:

You have to submit the form after filling in all the details. Your form will get an error if the data entered is not valid; otherwise, a 12-digit unique number will appear.

E-Way Bills Validity

The e-way bill is valid for a specific period. The validity depends upon two factors. One is conveyance used, and the other one is distance.

The validity of an electronic-way bill depends on the time and date of generation of the bill.

Let us see the validity according to the different factors.

For Over-Dimensional Cargo

For Conveyance Other than Over-Dimensional Cargo

We can also extend the validity of the e-way bill. This extension can happen in only two conditions.

Necessary Documents Required to Generate an E-Way Bill

Conclusion

Many GST registered or unregistered users and transporters do not know from where to generate this electronic-way bill. So, there is GST billing software like Imprezz; that will guide and help you fill the form according to your need. These conditions need to consider if you are generating the e-way bill using Imprezz accounting software.

We offer a 14 days free trial software program for small business owners in India. Log in to start your GST accounting today!

Easy Guide to GST ANX-1 and GST ANX-2Many reforms have been made in the Goods and Services Tax (GST) return filing system. There is an addition of GST ANX-1 and GST ANX-2. A person used to fill the forms before the reforms, i.e., GST RET 1/RET-2/RET-3, are now supplemented with GST ANX-1 and GST ANX-2. These forms have similarities with GSTR-1 and GSTR-2A forms. These forms play a crucial role in the return filing process currently.

As you will continue reading this article, you will know more details about the annexure, GST ANX-1, and GST ANX-2.

Correct Reporting of Supplies: GST ANX-1 and GST ANX-2

There is a slight difference in mentioning the details of the supplies in both the annexure.

In GST ANX-1 format, the registered taxpayers have to mention all the outward supplies, all the inward supplies that come under reverse charge, and all the imports made at a certain tax period.

In the second annexure, GST ANX-2 format, the registered taxpayers have to give all the details of inward supplies done by the registered person, supplies obtained from an SEZ developer/unit, and imports.

As and when the registered taxpayer needs to upload all the documents related to supply in GST ANX-1, the taxpayer can see the same in GST ANX-2. The recipient has three options that can be taken against these documents. You can accept them, reject them, or you can keep the documents in the pending state, where the action can be taken at a later stage.

GST ANX-1 and GST ANX-2: Trial Rollout

These two annexure forms were rolled out on a trial basis earlier in 2020 and officially implemented by October 2020. Notwithstanding the annual turnover, all the registered taxpayers must fill both the annexure forms and correctly file the same. In April and May 2020, GST ANX-2 is available only in view format. The recipients are not allowed to take any action against this annexure.

Note: New return system is effective from October 2020, allowing both the taxpayers and the system to transform and get familiar with the new process. Due date is also given to make changes in return in FORM GSTR-3B and outward supply details in FORM GSTR-1 for September 2020.

The new GST return filing system facilitates the recipient to upload all the documents related to inward and outward supply details on a real-time basis. These documents can be uploaded in GST ANX-1 and are auto-populated in GST ANX-2.

The other important addition in the new GST return filing system is that you can match inward supply details from the invoices in GST ANX-2 by the purchase register. You can take appropriate actions accordingly. If all the details filled by the taxpayer got tally, then the recipient will be eligible to get an invoice, and this can be used to claim ITC.

If the details do not match, then the taxpayer has to reject the invoice. If it is not rejected, the recipient cannot claim ITC. The other option which a taxpayer is having is to mark an invoice as pending. In the later tax period, if the recipient wants, he can defer claiming ITC.

There is a cut-off date, which a taxpayer needs to keep in mind. Before the due date, the taxpayer can upload the invoices in GST ANX-1.

GST ANX-1 can be seen from two sides,

Supplier’s Side:

The taxpayers filing monthly returns have to submit the B2B invoices before or by the 10th of every month.

The taxpayers filing quarterly returns have to submit the B2B invoices previous to the 23rd of the successive month in the given quarter.

Recipient Side:

The taxpayers filing monthly returns can take action on the invoices uploaded in GST ANX-2 previous to the 20th of the following month.

The taxpayers filing quarterly returns can take action on the invoices uploaded in GST ANX-2 previous to the 25th of the month following the quarter.

There can be a mismatch in the invoices uploaded by the recipient and the supplier. The invoice uploaded by you might not be reflected in GST ANX-2 because it is not uploaded by the associated supplier in the corresponding GST ANX-1.

You may question that if a supplier does not upload or fails to upload the invoices before the due date, what will happen?

In this situation, the recipient has to alter the claim submitted in GST RET-1. The recipient has to pay the amount of tax after all the reversals.

There is a specific period for the suppliers to upload the invoices.

* Here T is the tax period.

T+2

For the taxpayers filing monthly returns, the time is two months after the tax period.

T+1

For the taxpayers filing quarterly returns, the time is one quarter after the tax period.

The recipient has to face difficulties in claiming ITC because of the delay on the supplier’s side, and the genuine recipients have to face problems.

The government is getting benefitted from the Provisional Credit Facility, which comes under the new GST system. Let us see how?

For recipients, the process for provisional credit is clumsy. These data help the government solve various cases in which genuine taxpayers cannot assure the suppliers for reporting or uploading invoices.

What the Government has to Say About the New GST System?

There will be ease for the recipient in claiming for ITC if everything is done properly from the supplier’s end. These all require the help and support of technology. The role of technology is to check if ITC is not blocked, it should quickly identify the mismatches, and if there is any problem, it should get resolved under the new GST return filing system.

Conclusion

To simplify the process of the new GST return system, you can use GST billing software. One such software is Imprezz. You no longer need to worry about the complex process. The software will simplify everything in just a few clicks.

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