GST software for return filing
CA Poonam Gandhi
September 4, 2023

Post introduction of Goods and Services Tax (GST), due to high compliance requirements, the adoption of effective technology has become a prime necessity rather than just a choice. Further, the necessity of effective technology gets even stronger with the rapid introduction of e-invoicing.

There is a wide range of GST software available in the market. Accordingly, it is important to analyze and select the one which fits the best to our requirements. It is a general perception that GST Software for return filing is more reliable. However, there are various other tasks which are quite essential and needed to be marked while selecting GST Software for return filing.

The present article highlights some of the tasks which GST Software can do apart from mere return filing to enable simplification of GST compliance. Following is the list of the task which is taken up and briefed in the present article –

  • Detailed and clear invoice data;
  • Tracking of GST compliance at the organizational level;
  • Effective GST reconciliation;
  • Eyeing on vendor compliance;
  • Consolidation of GST data required for GST audit; and
  • Payment collection records and sending reminders to customers.

Detailed and clear invoice data

Detailed and clear invoice data enables tracking of business growth. GST Software should ensure the accuracy of data entered in an invoice. The Software should allow the auto-filing of GST returns based on the data generated.

Post introduction of e-invoice generation, advanced GST Software is needed which can enable seamless integration with the authorized Invoice Registration Portal (IRP) in order to generate IRN for the invoice.

Tracking of GST compliance at the organizational level

Organizations having multiple registrations under GST need to keep a high level of tracking with regard to GST compliance. Entire organizational GST compliance as well as other related issues can be easily overviewed with the help of the GST MIS report

Further, the GST MIS report also enables the organization to optimize their input tax credit availment and also achieve accuracy in GST reconciliation.

Effective GST reconciliation

Reconciliation of data like outward supplies, input tax credit, payment of tax, etc. tends to consume lots and lots of time and energy of the taxpayer. However, GST Software ensures converting the exhausting reconciliation task to be simplified and carried out in just a click.

Eyeing on vendor compliance

After various amendments in GST law, now it is critically important to keep an eye on timely and effective compliance by the vendor. Availment of input tax credit highly depends on the timely compliance by the vendor. Non-filing or delayed filing of GST returns by the vendor will result into the non-availability of input tax credit and accordingly blockage of working capital.

GST Software should enable the following basic tasks to keep an eye on the vendor’s compliance-

  • Verify the GSTIN of the vendor;
  • Match actual entries with the entries reflected in GSTR-2A/ GSTR-2B;
  • Intimate the errors if any or the missing entries if any to the vendors.

Read related article:

Input Tax Credit Under GST - 10 Cases Where You Cannot Claim It

Consolidation of GST data required for GST audit

Consolidation of GST data and complying with GST audit requirements is a highly tiring and time consuming task. For making the consolidation task easy and quick, GST Software plays a crucial role.

GST Software automates the process of organizing, collecting, evaluating and reconciling a wide amount of transactional data from different sources. Basically, GST Software ensures the complete compilation of data as well as accuracy thereon.

Payment collection record and sending reminders to customers

Effective collection and payment process is the gist of any business. GST Software can easily keep track of the collection and payment process. Acting as a collection manager, GST Software can even send auto reminders to the customers whose collection is pending.

CA Poonam Gandhi

About the author

Poonam Gandhi is a Chartered Accountant and a Lawyer. She is a Professional Freelance Content Writer/ Editor and an Educator.

She masters in creating result-oriented as well as Search Engine Oriented Content. Currently, she is associated with some of the topmost leading sites of India.

She holds more than 3 years of experience in the content field. Before entering the content writing field, she possessed a wide practice experience of more than 9 years, specifically, in the field of Indirect Taxation.

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