The government has made hundreds of changes in the Goods and Services Tax Act to ensure that the taxpayer’s convenience in complying with the regime. The stability of the taxation regime has long been under a great risk due to the rising compliance-related complications. As you must know the fact that many businesses got involved in the fraudulent practices that extensively sabotaged the Goods and Services Tax Act. However, it is completely understood that the regime is still evolving and will need some amount of time to become seamless, the tax evasion is no valid option to comply with.
If you are a registered taxpayer under the Goods and Services Tax Act, then you must be aware of most of the developments that the government made in the regime. And even if you don’t, here are the most complicated processes under GST of all time:
- E-way bill– Besides comprehending the fact that an e-way bill is a document required to lawfully carry the goods and services from one place to another, the businesses have not been able to understand any other rules of it. First the crash of the portal and then the confusion on the matters like which consignment to get an e-way bill for baffled the businesses as well as the logistics industry in the entire nation. But even after so many complications, more than 20 million e-way bills have been generated so far.
- Return filing– The government has been experiencing the flaws in this process since the implementation of the Goods and Services Tax Act in India. The return filing mechanism has created some of the serious impacts on the businesses especially on those that are still unaware of the technologies like GST software. Initially, a taxpayer was required to file a total of 37 returns in a financial year. But following the repercussions of the hectic process of return filing, the government advised the taxpayers, for the time being, to file only summary return form and sales form.
- Profiteering- India has a diverse market. There are millions of committed minds behind such an extravagant network of businesses. But few of them dare to walk the wrong path to achieve things the con way. Similarly, there are thousands of businesses that are involved in the profiteering measures. In the case of Goods and Services Tax Act, the profiteering simply refers to the act of business not passing on the benefits of GST to the consumers. According to the complaints filed by the customers, the real estate industry has been found to be profiteering heavily and taking the leverage of the new indirect tax act.
The exceptional role of the GST software
No matter if a person is registered or unregistered under the Goods and Services Tax Act, everyone is well aware of the fact that the regime is completely digital after the establishment of GST software. Hence, the software became an aspect of the utmost importance in the taxpayer’s lives. Due to the advent of the taxation software in the market, millions of businesses became able to comply with the Goods and Services Tax Act. Here are some of the vital processes that got simplified with the incorporation of the taxation software:
- Invoice preparation– Without invoices, there could be no taxation. An invoice shows the record of the transaction whether sale or purchase that occurred over the course of time in business. Under the Goods and Services Tax Act, the registered taxpayer is required to upload all of the sales invoices on the GSTN (Goods and Services Tax Network). But the taxpayers weren’t able to cope well with the creation and maintenance of the invoices in such large numbers. Hence, the GST software, integrated with high-end technology, helped the taxpayers to effectively generate the invoices in bulk and upload on the GSTN.
- GSTR forms– There are multiple GSTR forms under the GST Act, and a taxpayer was initially bound to fill all the forms. But the forms were made so extensive and included multiple pages that incurred lots of mistakes in the forms filed by the businesses. Fortunate to the Indian taxpayers, the taxation tool comes handy with all the GSTR forms and also the facility to fill it on the automated- basis with the requirement of only a few human inputs.
- Tax calculation– The destination-based nature of the regime confused the taxpayers with the rates of GST as well as the destination codes that are HSN and SAC (Harmonized System of Nomenclature and Services Accounting Code respectively). As the software can process most of the tasks automatically, it requires the taxpayer to enter the values, and it further calculates the applicable tax and also discovers the HSN/SAC codes for the user making the tax calculation easier than ever.
- Registration– This is the very first step for anyone who wishes to comply with the Goods and Services Tax Act. However, the process of registration is easy even if a person tries to do it on the manual basis. But with the help of a taxation software, the person would just be required to submit some of the mandatory documents like identity and address proof with valid bank account details, etc. and the software would do the registration within the stipulated time.
The Goods and Services Tax Act could be relieved from the external hassles only when the taxpayers of the nation would be made aware of the regime. If the unawareness of the people about the indirect taxation process would keep on increasing, then ultimately the regime will fall at the end. Hence the government should take the smart way and make the taxpayers aware of the rules and regulations of the regime through unique and interactive sessions. As of now, equipping the taxpayers of the nation with the vitalities of the taxation system would help the government to achieve the objective of one tax, one nation.