GST Tax Calculator: Tax Calculation under GST, Deductions, and RatesIndia is a nation that is emerging towards the greatest days of all time. With the literacy rate up to almost 75% of 132 crores of population, people are now ready to educate themselves and find transparency in everything that the government offers. Recently, GST tax calculators have gained immense popularity due to apparent changes in the GST regime.

The government has notified economic relaxation measures and extended due dates to overcome the impact of the COVID-19 pandemic crisis. The GST Council of India has also implemented several tax calculation changes to relieve the taxpayers of the compliance burden. Each registered person or business registered as a taxpayer is linked with the taxation policy to track funds effectively. This article will walk you through GST rates, deductions, and calculations.

Categories of GST

There are four departments of GST, they are:

UTGST

The Union Territory Goods and Services Tax (UGST) includes taxes that are claimed by the government of union territory.

IGST

The Integrated Goods and Services Tax (IGST) includes taxes claimed by the state government on the inter-state exports and imports department.

CGST

The Central Goods and Services Tax (CGST) includes taxes claimed by India’s central government.

SGST

The State Goods and Services Tax (SGST) includes taxes that are claimed by the State government.

Tax Rates Under GST Regime

The different rates of GST in India are accurately calculated through a GST tax calculator. It includes the following tax rates:

Every small-scale business or large-scale business has to consider the GST policies of the country to maintain a smooth and professional financial relationship with the government.

GST Tax Calculator – Tax Calculation Requirements

India is now following a unified single tax structure across all the states. Many people in business found it a worrying factor as it may increase the burden of compliance. On the other hand, the nation has a more significant deal under GST taxes in day-to-day food and personal care products.

These are few essentials that are required to calculate GST Tax. These essentials are usually required to calculate the GST amount on GST tax calculators, such as Imprezz.in.

How to Calculate GST Amount

Step – 1

Covert the GST rates (The GST rates – 5%, 12%, 18%, 28% ) into decimals. I.e., divide the percentile by 100.

Example: 12 ÷ 100 = 0.12

Step – 2

Multiply the actual amount of the product, for instance, consider it to be RS. 12,000, multiply the amount with the decimal value of the GST tax percentage.

Example: 12,000 × 0.12 = RS. 1,440

Step – 3

Now, RS. 1,400 becomes the GST amount, excluding the original amount. Further, add the GST tax amount to the actual amount.

Example: 12,000 + 1,440 = RS. 13,440

It is the calculated tax, including the GST of the imaginary product.

How to Calculate Taxable GST

To calculate the taxable GST, follow the step – 1 mentioned above, add “one” to the applicable tax rate and divide the total receipt by that value derived. For instance,

If the tax rate is 12%, then after step – 1, i.e., 0.12 + 1 = 1.12.

Now divide the total receipt amount derived from step – 3, as mentioned above, by 1.12, i.e., 13,440 ÷ 1.12 = RS. 12,000.

You can easily calculate the GST tax through the online GST tax calculator. GST tax calculation at your fingertips – Imprezz.in, the best accounting software in India. Visit Imprezz.in to know more about GST invoices, formats, quotations, and more.

Types of Taxpayers Under the GST Regime

Generally, there are two types of taxpayers under GST.

Type – 1: Taxpayers Registered Under the Normal Scheme

Under this taxation scheme, the taxpayers can claim the Input tax credit and collect the tax through tax invoices. It includes businesses or taxpayers with a specific turnover threshold.

Type – 2: Taxpayer Registered Under the Composition Scheme

Under this taxation scheme, taxpayers are not allowed to claim the input tax credit, nor are they permitted to collect tax through tax invoices. Both schemes have their pros and cons. The aim is to bring up the tax culture to an appreciable facility level.

The nation is slowly trying to adapt the portal services and online form procedures for a better experience. The government is focused on speeding the process related to GST to encourage people to pay their taxes for the nation’s better tomorrow.

Conclusion

GST tax calculation is a no brainer task. Yet, as a taxpayer, be aware of what you follow in terms of calculating your taxes. As a citizen of India, we must pay taxes on time with greater transparency possible. It is the only way we can contribute to the nation and overcome the COVID-19 economic crisis.

To automate the GST tax calculation, Subscribe to Imprezz.in. Rid of multiple tax calculations and automate GST calculated Invoices on our online accounting software. For GST related help, feel free to contact our support team. We are ever ready to offer an uninterrupted business environment for you.

At Imprezz.in, we offer a 14 days free trial software program, empowering entrepreneurs, freelancers, and small businesses in India. Log in to start your GST calculation.

What Is Invoice Numbers Importance On A GST Invoice?What is an invoice number? Each person or business registered as a taxpayer is given a unique consecutive number for identification of the flow of payments known an Invoice Number. It enables the government to keep track of funds that rotates across the country for various purposes.

In other words, we can define the GST invoice number as an Aadhaar number of a tax-paying business or a person. The given number should always be mentioned on purchases if the purchased goods or services are worth Rs.50,000 or more.

For creating a GST compliant invoice, quotations under GST invoice rules without any confusion, visit Imprezz.in. Send invoices, quotes, and reminders with just a few clicks. The cloud-based invoicing software helps automate invoicing processes and enables you to access financial data from anywhere, anytime. Keep track of all your transactions with zero hassles.

What is Invoice Number and Its Importance in the GST Invoice?

The invoice number is generally within 16 digits and should not exceed 16 characters. The number is either initiated by “1” or an integer higher than 1. Often, the given number includes the date of registration, for example, “20200003”. Some invoice numbers also include alphabets representing the company name or the owner’s name, for example, “2020KP005”.

The given number is reflected in the GSTN portal every time it is used, which acts as a pre-validation. A unique number is also issued along with an invoice number known as IRN (Invoice reference number). An IRN is sent to the taxpayers directly once IRN is generated.

Importance of Invoice Number in GST Invoice

The invoice number is a crucial component of GST invoices and is vital to manage bookkeeping processes. It acts as a record or documentation towards securing a company’s or a service’s history. An invoice number is also significant concerning legal protection. It helps prevent small businesses in India from being jeopardized by improper or fake lawsuits.

About 7% of revenue is generated by the taxpayers, who sum up to a population of 132 crores. In a country like India, the exchange of goods and services takes place even without government involvement.

Previously, the inadequate taxing procedures in India were one of the prominent reasons behind taxation fraud. Thus, the government adopted improvised taxation principles such as numbering GST invoices to avoid misleading goods and services. Therefore, enabling the government to keep track of accurate GST return filings.

The GST invoice number also helps lead the auto-populated filing under the new GST return forms, increasing the accuracy and speed of the procedure with ease. Thus, it also helps auto change the relevant information in ANX-1 and ANX-2 of the taxpayers.

Connectivity is another major issue faced by taxpayers in India. The GST portals malfunction often during the auto-population or during uploading the GST forms of clients by government. However, the introduction of new GST returns filing procedures has successfully failed the technical issues of returns failing.

Conclusion

GST invoice number linked to the exports and imports of goods and services is a boon. It helps carry out a secured transaction as it acts as a written agreement or a proof of the transaction.

India has the lowest taxpayers despite its overpopulation. Thus, the GST invoice number’s implementation and use can significantly help track down violations of laws related to funding transactions in the nation.

Professionally creating invoices with the GST invoice number helps emerging companies or a potential client get paid faster, which generates more revenue for the nation.

To have the safest invoice billing and hassle-free GST returns filing, subscribe to  Imprezz. in, India’s leading online invoicing software. We offer a 14 days free trial software program, enabling entrepreneurs, start-ups, and small businesses in India to skyrocket their business in no time. Log in to access the free invoicing tools.

Why to Use an Invoice Generator Software?An invoice generator software helps create invoices and credit notes under the standard format. It enables accountants and business owners to calculate the taxable amounts, keep track of all transactions, and interact with vendors/customers.

Integrated bookkeeping software like Imprezz rids businesses from the risk of human errors and redundancies of manual invoicing processes. Invoice generator software eliminates the need for hours of repetitive tasks related to manual invoicing.

What is an Invoice Generator Software?

In its simplest form, the best invoicing software helps your business by automatically generating invoices for the goods and services provided. Generally, billing software creates a list of products and services, adds their cost with discounts, and issues the invoice by email or other electronic delivery.

Online invoicing software offers ready-made templates, ridding from time spent on manual processing while providing a professional invoicing consistency under updated invoice rules. Cloud billing systems make billing, collection, and recordkeeping more automatic and uncomplicated for your small business.

Why Use an Invoice Generating Software?

The advent of automation in all industries has given us a software and technology option to run businesses efficiently. Technology has revolutionized the field of invoicing. Previously, the cumbersome and time-consuming task was simplified by using off-the-shelf applications and software. But the question that arises is, should a small and medium business or a startup invest in such technology?

The answer is yes! They should. The software enables businesses to create paperless invoices and store them in the cloud that can be quickly processed, reconciled, and calculated and are environmentally friendly (less or no paper waste). Invoicing software is an ideal recommendation for any business type.

Here are some of the vital benefits a business should consider before using an invoice generator software

Reduces Errors

Online invoice generators calculate the total amount for you to prevent errors. It adds the taxes and ensures that the right client is billed. Processes done by humans are prone to error. They can also damage the relationship with the customers. Issues in Invoicing software can be fixed easily with the implementation of the right accounting software.

Increase in Sales

We can increase sales and generate revenue by giving out discounts, Seasonal Offers, and Combo Packages. Invoicing software gives you the options to modulate offers and add into it as and when the vendor decides without worrying about the changes and the calculations that come in the invoicing.

Increasing Customer Database

A business that operates fast and has an adequate workforce makes the company acquire the customers’ trust. Having a reliable and user-friendly invoicing software makes getting work done quick and easy. It provides credibility to the company’s reputation and image in the market.

Cloud Storage & Remote Access 

A cloud-based invoicing solution allows you to save all your financial data. Your estimates, invoices, expense receipts, and other related documents are online and in one dashboard.

Professionalism

When Invoices are generated with customized messages and greetings towards customers, it gives them a sense of attention

Interacting with Customers & Vendors

The preferences and choices for your customers and vendors shape the business and production of your company. Massive corporations have a separate department that handles and manage their interactions with customers. Small and medium scale companies use an invoice generating software to do these tasks and call to action.

Options of Multiple Payment Options & Currency

Providing payment according to the region and conversion of foreign currencies gives customers ease of doing business.

Multiple Platform Interface

Invoices can also be made with mobile versions of a web app or desktop software. This way, it’s easier to be notified in real-time. When payments are carried out or when businesses generate invoices, you get to verify it in your hand-held devices.

How to Choose the Best Invoice Generator Software?

Now that you are well aware of the lucrative benefits of implementing an invoice generator software, you should know how to choose what is best for your business. While searching, you will find many free invoice generators stacked together. Some are reliable, while others are not.

So here are some professional tips for choosing the best accounting software:

Having said that, it is best to point out that the features of the invoice creator software should be chosen according to the needs and specifications of your business.

Conclusion

It is vital to choose a reliable and suitable invoice generating software according to the business type. The top software available online is free but comes with Paid Premium features, which makes work easy. These features come on a subscription basis or can be customized according to your organizational requirements.

Some of the subscribed features on Imprezz invoicing software include instant invoicing, billing, hassle-free syncing anytime to your database, recurring bills, crediting notes, managing multiple businesses, mobile compatible pages, connecting even in offline mode, and most importantly, giving complete security when it comes to invoicing and transaction confidentiality.

With Imprezz invoice generator software, you will know the exact time and date of delivery. You will also get notified when the bill gets opened. We offer a 14 days free trial software program for small businesses in India. Start invoicing today!

Rules to Follow When You Export Under GSTManaging invoices and following the prescribed rules is vital to export under GST. The registration process is mandatory for goods or services exported to places not included in the domestic territories. Registration allows exporters to leverage the schemes in terms of the current taxation policy.

Generally, when you export under GST, it is considered as a zero-rated supply. In other words, GST will not be imposed on any goods or services you provide that are registered under GST.

To claim the benefits of export goods or services, exporters must adhere to the government’s options.

Necessity seeds innovations. The COVID-19 pandemic has stirred the economic crisis globally. It made India believe in “Aathma nirbhar.” The government of India has notified various tax relaxations to increase the export of goods and services in India. Thus, several tax benefit regimes are introduced to avoid the burden of domestic taxes on exporters.

Besides, exporters are requested to follow specific rules and procedures. Maintaining accurate documentation can help exporters avail of the tax benefits. Imprezz.in, the best GST billing software in India, enables exporters to be GST compliant concerning the GST updates. You can file your GST annual returns under the specified rules with zero hassles. In this article, we have listed the rules to follow when you export under GST.

Rules to Be Followed on Exports Under GST

Rule – 1

PAN (Permanent Account Number) is legalized as the symbol of import and export by the DGFT (Directorate General of Foreign Trade). Exporters will have to create their quotes for the same. It is applicable if the exporter deals either with goods exempt under GST or products outside the GST system.

Rule – 2

Invoicing with GSTIN on shipping bill is mandatory when exporting products concerning GST for domestic clearance.

Rule – 3

In case of exports carried out by special agencies under the United Nations Organization or notified Multilateral Financial Institutions, Embassies, and deputations, the exporter can quote Unique Identity Number (UNI) instead of GSTIN, in the Shipping Bill.

Rule – 4

Without GSTIN/PAN/UIN, the shipping bill cannot be filed.

Rule – 5

The claim for refund on IGST or Input Tax Credit paid, inputs consumed in exported goods cannot be processed without GSTIN and GST Invoice details in the Shipping Bill.

Rule – 6

Exporters must provide information on Commercial Invoices in the Shipping Bill. Wherever Commercial Invoice is different from a Tax Invoice, details of both have to be provided in the Shipping Bill.

Rule – 7

GSTIN numbering scheme includes the state code. However, in the Shipping Bill concerning the field “State code of origin,” exporters must declare the state code from where export goods originated. The process remains the same as it was being done before.

Rule – 8

The taxable value and Tax amount should be mentioned against each item in the Shipping Bill for processing the refund amount. The same GSTIN holder issued multiple tax invoices are allowed only in one Shipping Bill for the same consignee.

Documents and Procedures for Exports Under GST

Export of Goods

Any tax invoice furnished by an exporter must contain the details mentioned below:

Shipping Bills can be used to claim refund provided that:

Export of Services

Under Section 2(6), IGST Act, 2017, services qualify as exports only under the following circumstances.

Documents Required to Export Under GST

On exports carried out without the payment of IGST, furnish the LUT or a relevant bond. Maintain the Foreign Inward Remittance Certificate or Bank Realisation Certificate to avoid incurring GST charges. You can furnish them as proof of receipt within the prescribed period of one year from the date of export. Otherwise, GST is applicable to transactions in which exporters do not take this step.

Any document furnished under GST must include a service agreement. The issued tax invoice document must contain the following details:

As mentioned earlier about “Aatma nirbhar,” Imprezz.in is the best cloud accounting software, effectively helping India’s small businesses. The software is programmed with GST compliant invoices and quotations that enables self-employed and small business owners to create their invoices, quotes, and reminders. The cloud-based accounting software allows businesses to file GST returns directly on the portal in just a few clicks.

Conclusion

Amidst the on-going pandemic crisis, several businesses have failed to file GST returns on time despite the GST audit extension. Not staying GST compliant can harm growing business to a greater depth. By following these rules and documentation, exporters and young entrepreneurs can be relieved of the new taxation policy.

Instead of running all the errands, businesses can switch to Imprezz accounting software. Automate GST invoice processing and returns filing to avail benefits and to make life better for oneself and your employees. Stay updated with GST rules and other relaxations, subscribe to Imprezz invoicing software.

We offer a 14 days free trial software program for small businesses in India. Log in to start exporting under GST rules.

How to Scale Account Management for Business Growth?Small businesses in India must prioritize leveraging account management to drive massive business growth. Many startups often tend to operate with a motive to sustain. Thereby, they overlook that having formal systems and design at an initial stage can take the business to a new level in no time.

The difference between businesses that succeed and don’t is the ability to scale their strategic execution. Each business, irrespective of its size, must focus on building ideal customer relationships. It is easier to generate strategic accounts from loyal customers. Because selling to an existing customer is much easier and profitable than otherwise.

As a business owner, you need to acquire resources as you expand. For instance, when the customer base increases, you need to hire more professionals to serve them. Scaling primarily refers to adding adequate revenue, while businesses add resources at a marginal rate.

Retaining customers in today’s competitive world can be devastating for businesses. One way to achieve this aspect is to scale account management. The strategic accounts represent at least 40-50% of revenue and margin of an enterprise. Thus, businesses must reassess the systematic approach towards top customers.

This article is a comprehensive guide to small business owners in India. After having done thorough research, we have laid out key strategic methods. Find out how you can grow your business without over complicating account management.

What is Account Management? – Importance

Account Management is an extension of the sales process. It starts once the sales transaction is carried out successfully. Strategic management helps to handle customer accounts regularly. It is a process of building long-term relationships with valuable customers. They drive more profit to the enterprise, and account management helps convert them into business partners.

A key account manager who carries out the management processes provides necessary resources, periodic meetings, and offers. Modern businesses automate financial management processes from inception to keep track of each transaction. Current online accounting software for small businesses in India, provides financial analytics and business solutions that help businesses stand out among their competitors.

Automate Account Management with Imprezz.in

Growth of sales for small businesses in India begins with analyzing and understanding purchase and preference patterns. Most buyers these days are sophisticated in making purchase decisions, bids, and negotiations. It is where Imprezz cloud-based accounting software comes to play.

The integrated software runs all the accounting errands for small businesses. It not only helps retain current customers but enables to poach new clients though customizable quote creator. Imprezz automation tools reduce the workload for account managers and other employees, eventually streamlining the organizational workflow.

Strategies to Scale Account Management to Drive Business Growth

Traditional Account Management strategies can hurt the growing business. Here are five strategic methods that can transform a small business into a successful organization.

Method – 1: Increase Renewals

Increasing your renewal rates doubles your income base and gross revenue growth. Adding points to the renewal rates and improvising it over time can be a twisted process. Lower renewals hamper revenue growth and scalability. A renewal rate of 85% will consume at least 15% of the growth in new business bookings to maintain revenue growth.

Most companies struggle to overcome renewal rates, while the best companies never drop lower than 95% renewal rates. Imprezz cloud-based software counters the problems and provides tools to improve renewal rates.

Taking a “land and expand” approach to sales could positively affect renewal rates. For instance, you can aim to capture half of the target growth rate of expansions by demonstrating value in one area of ​​your client’s business and then expanding to others. As your platform or solution becomes more stable and long-term, the customer (renewal) will likely stay with you.

Method – 2: Hire Creative Minds That Understand Your Goals

Most SaaS and Tech companies fail to employ product strategists or marketers. Commonly, not many CEO’s have experience working with them. It is one of the mains reasons why businesses are not able to scale their growth. Here’s how hiring creative minds can bring about a change in an entity.

Hiring ideal employees is a strategic function laid out to generate market reports that guide the CEO’s to make business decisions. They help prioritize and group technical requirements for business sales and customer retention.

Method – 3: Offering Value-Added Services

Whether you seek each project to be a professional service (as if it were unique) based on business hours, sell one-size-fits-all services, or, worse yet, provide free service hours, these practices are not scalable. Provide packages on the services or products that you render. You can offer a project-based, annual or timely subscription for your customers. Here are a few examples.

         1. Implementation

Examine what it takes to implement your solution in one customer profile versus another. Inspect in terms of roles or types of service required, such as discovery, integration, QA, architect, and project management. Look into the hours of each kind of service you offer.

Incorporate this into production deployment packages at a total flat rate compared to the software’s annual cost. It allows your sales representatives to sell your price list rather than looking for resources to define each deal’s scope. The implementation strategy also leads to the aligned organization of services in terms of lifetime expectations (revenue recognition).

         2. Creating & Managing Reports

Do your account managers provide regular reports?  Are they responding to custom report requests from clients? How many hours a month do you dedicate to this? Can these interactive service requests be turned into a value-added proactive reporting or analytics service for a fee?

         3. Optimization

Set and Forget. Offer an upgrade package for a fixed annual fee. Ensure that your solution is actively launched and used so that it is consistently aligned with your customers’ business needs and that they get the most out of their deployments.

Method – 4: Integrate Product Management Ownership with Delivery of Services

Integrating product management and product delivery keeps the money roadmap in place. Keep the customer experience at the center of the roadmap and focus on revenue generation. It lends not only a scalable service offering but also a more scalable end product.

Especially for startups and small businesses, product managers need to see how products are implemented, merged, improved, etc. If done so, they will be better positioned to produce capabilities that would otherwise require customization work and service hours to activate.

Method – 5: Launch Sales & Marketing Engines Across Multiple Cylinders

Multifaceted market models tend to present the best opportunities for growth and scalability when implemented effectively. Here’s what launching sales and marketing engines across multiple cylinders mean.

Successful businesses seize the opportunity to shoot multiple cylinders in an early stage of their journey. It helps in the optimum utilization of resources. In case you plan to expand to mid-markets, you can extend the base of target buyers. In this way, you can leverage existing tactics of lead generation and resources.

Conclusion

Of course, there are many ways to scale a growing business. What are your strategies and methods for expanding growth? Embrace failures and learn from your mistakes. Focus on bringing the right system in place. Implement a strategic account management plan. Allow your account managers to shape the future of your growing business.

Better yet, go for cloud accounting software that can automate it all for you. Rid of the challenges of implementing your account management plans. Imprezz.in, the best accounting software enables businesses to gain internal support and advocacy. Utilize the analytical solutions to measures the success of your account plans.

At Imprezz, we offer a 14 days free trial software program for small businesses in India. Log in to start your accounting today! Grow with us.

Changes Under New GST Return FormatAs we all know, the whole world is suffering from a substantial financial loss due to the COVID-19 pandemic. On the other hand, India, with its vast population, is trying to bring in the best solutions to counter the crisis. Be it ‘Atma Nirbhar’ or “Vocal for local,” the government has notified several changes under the new GST return format relaxations and taxation policies to encourage many young and innovative minds of India.

By providing GST audit extension on due dates to file the GSTR-4, the government has given itself and the composition taxpayers a time of relief and recovery till 31st August 2020. If not for COVID-19, it would not have been possible for the government to overcome the confusion that previously existed due to multiple amendments and technical glitches on the GSTN portal.

In this article, you will know about the new GST return format declared on the 31st GST council meeting that came into force from April 2020 onwards. For more Invoice and GST related queries, reach out to us on Imprezz.in. We are an Indian company helping entrepreneurs emerge by programming GST invoices and quotations that enable self-employed, small scale businesses to create their invoices, quotes, and reminders directly on the cloud. Reduce the compliance risk and stay GST compliant with Imprezz accounting software for small businesses.

Rules to Be Followed Under the New Gst Return Format Relaxations

Generally, in the old GST return format, depending upon taxpayers’ category, people had to fill and file multiple forms of return, such as GSR-1(Goods and Service Tax Rate-1), GSTR-2, GSTR-3, GSTR-4, etc. Thanks to the new GST return format, only one easy return form, “GST RET-1,” is to be filed by all the taxpayers. The “GST RET-1” consists of 2 annexures, namely “GST ANX-1, GST ANX-2”.

GST ANX-1

The form primarily consists of the section that deals with inward and outward supplies. It typically consists of 4 sections in the form to be filled. The first two sections are about the taxpayer’s details, that is, his and his company’s registered name, date of filing, and ARN (Application Register Number).

The third section deals with all the exports’ details, inward and outward supplies carried out during a particular tax period, which attracts a reverse charge. The last section deals with all the e-com operated supplies that are accountable for collecting tax.

The taxpayers must be well aware that the inward supplies accountable to RCM (Reverse Charge Mechanism) must be acknowledged at the GSTIN level in the GST ANX-1.

GST ANX-2

The form mainly consists of 5 sections of inward supplies that are auto-drafted. The GSTIN has to be provided by the recipient in the first section, and the third person will automatically fill the second section.

In the third section, the recipient will be providing the details about the inward supplies received from the registered person, imports, and SEZ (Special Economic Zone) unit on BOE (Bill of Entry).

The fourth section of this form deals with Input Tax Credit: the rebates that the government provides in case of exceptional circumstances surrounding a person.

The fifth section primarily determines eligible credit received from ISD (Input Service Distributor). Via this, the recipient will also be provided with an HSN (Harmonized System of Nomenclature) to submit details at a document level.

New Return Filing System

When it comes to the changes made to bifurcate between small taxpayers and large taxpayers, in the old return format, the taxpayers whose turnover is up to 1.5 crores are regarded as small taxpayers and above that are considered to be large taxpayers. Wherein, in the new GST return format, the taxpayers whose turnover is up to 5 crores are regarded as small taxpayers and above that are considered to be large taxpayers.

Immediate Cancellation

The taxpayers have to file the GST returns until their registration has been canceled through an application for cancellation. Wherein as per the new GST return format, on the application of the form of cancellation, the GST return will be canceled immediately, after which you are exempted from filing the returns of that period.

The Remake of Amendment Returns

If in case the taxpayer loses his amendments or invoices, according to the new GST returns system, on filing an amendment return, it can be remade, instead of waiting for a specific tax period as in the old GST return format.

Claiming ITC

If the taxpayer provides or uploads debits or invoices within a certain period, he/she can claim ITC on returns except for the first ten months of visibility. Thereby, on the eleventh month, it will be posted on the ITC table. It will be published in the concerned department of the recipient’s return for the subsequent month.

Resolved GST Return Filing Complications

When the taxpayers filed invoices in GSTR-1, its month of the amendment could not be seen due to which many complications started arising. It had left many taxpayers worried. But, the release of the new format has successfully resolved the significant parts of the issue.

Visibility of Input Credits

With the introduction of GSTR-2B, the information of the input credit available on the imports will be shown. Unlike the old GST return format, the GST returns on the imports were not reflected anywhere in the GSTR-2A.

Easy Returns Filing

In the new GST return format, the government has made specific changes to make the procedure of the GST returns filing easy and encouraging for the business and professional communities throughout India.

GST E-Invoicing

Also, from 1st October 2020, under the GST arrangement and applicability of QR codes, the implementation of GST e-invoicing of bills has been made definite.

Conclusion

The changes implemented by the government of India have undoubtfully been for a better tomorrow and under the citizens’ favor. However, with the simplified format of the new GST return format, the procedure and the complications that made taxpayers concerned have now been relieved.

The new budding businesses all over India can now aim towards a higher level of progress by these changes. For more exciting education and a helping partner in terms of GST, invoices, and quotations, subscribe to Imprezz.in, the best accounting software in India.

We offer a 14 days free trial software program for small businesses in India. Stay GST compliant with updated invoice rules and format. Log in to start your accounting today.

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

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

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

GST Exemption on Goods: What Does it Mean?

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

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

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

Reasons Why GST Exemption on Goods Is a Bad Idea

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

Pros of GST Exemption

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

Cons of GST Exemption

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

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

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

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

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

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

Conclusion

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

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

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

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

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

Imprezz Accounting Software Integration – GST Accounting

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

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

Benefits of Imprezz GST Accounting Software – Tally Integration

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

Other Benefits of Imprezz Integration with Tally

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

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

Conclusion

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

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

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

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

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

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

Indian Accounting Standards – Definition

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

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

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

Objectives of Accounting Standards

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

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

Objective – 1

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

Objective – 2

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

Objective – 3

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

Benefits of Accounting Standards – Why Ind-AS?

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

Uniformed Accounting

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

Acceptability

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

Readability

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

Comparability

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

Changes in AS Concerning the Economic Situations

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

Foreign Investments

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

Rids of Fraudulent Accounting and Manipulations

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

Compliance Under Accounting Standards – ICAI

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

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Applicability of Indian Accounting Standards

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

Mandatory Requirement

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

Non-Bank Financial Companies (NBFC)

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

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

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

Voluntary Applicability

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

The requirement to Follow AS

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

In a Conflict Between the Companies Act and Indian Accounting Standards

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

List of Accounting Standards – Mandatory

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

Policies Related to Accounting Disclosure (AS 1)

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

Stock Valuation (AS 2)

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

Cash Flow Statements (AS 3)

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

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

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

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

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

Construction Contracts (AS 7)

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

Revenue Recognition (AS 9)

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

The property, Plant, and Equipment (AS 10)

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

Effects of Changes in Foreign Exchange Rates (AS 11)

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

Government Scholarships (AS 12)

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

Investment Accounting (AS 13)

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

Merger Accounting (AS 14)

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

Employee Benefits (AS 15)

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

Borrowing Costs (AS 16)

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

Reporting on Financial Sectors (AS 17)

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

Disclosure of Transactions with Related Parties (AS 18)

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

Accounting Policies and Disclosure of Lease Transactions (AS 19)

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

Earnings Per Share/ Per Share Earnings (AS 20)

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

Preparation and Presentation of Consolidated Financial Statements (AS 21)

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

Income Tax Accounting (AS 22)

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

Accounting for Investments in Associates (AS 23)

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

Operations Stops (AS 24)

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

Interim Financial Information (AS 25)

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

Intangible Assets (AS 26)

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

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

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

Impairment of Assets (AS 28)

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

Contingent Liabilities, Assets and Contingent Provisions (AS 29)

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

List of accounting standards – Non-mandatory

ICAI announced the withdrawal of the following accounting standards:

Conclusion

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

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

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

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

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

GST Annual Returns Filing in India: GST Audit Extension

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

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

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

Possible Reasons Why Government Gave GST Audit Extension

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

Reason – 1

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

Reason – 2

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

Reason – 3

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

Reason – 4

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

Reason – 5

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

Reason – 6

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

Reason – 7

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

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

GST Audit Extension: What it Means?

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

Conclusion

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

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