To secure your business and run it profitably in India, the most important thing that you should be doing is paying your taxes right. India’s business landscape is heavily monitored on the grounds of accounting and billing. And, to make things easy for entrepreneurs and businesses, the Indian government has unified all its taxes into one single bracket called the Goods and Services Tax (GST).
For businesses, the GST plays an important role in their success. Proper GST billing can help you build a transparent, reliable, and secure business in India. However, your traditional accounting methods and tools are no longer applicable when you generate GST bills. Modern-day businesses in India need effective GST billing software. This software supports you in defining the taxes levied on the supply of goods and services made through your business. It gives you a comprehensive and multi-staged accounting of your bills, clearly highlighting the GST part of the business transactions.
Today, India’s best accounting software such as Zoho Invoice, Tally.ERP 9 and Business Bill, among others, have made this one-tax system easier to incorporate and highly profitable for long-term business growth.
What is GST Billing?
GST billing is the process of producing business invoices with the application of GST. Since the GST launch in July 2017, every business in India, from small to large, must adopt the practice of GST billing. The GST invoices issued by this method serve as a business instrument. They provide details in the form of receipts on how a supplier or a seller has supplied goods and/or services to a buyer.
By using a GST billing software, you can generate the GST billing documents that indicate the names of both parties, buyers and sellers, involved in the trade of goods and/or services under a given transaction. Apart from that, a GST bill also gives details on the product name and its description, the number of goods and/or services being sold, the details of buyers and suppliers, the terms of supply, the price of each item or particular, and the date of the supply. Some GST billing processes also allow businesses to mention discounts on the given transactions.
GST billing is a multilateral process, which is why GST billing software can generate different types of GST bills for businesses. The three main types of GST bills include:
- Tax Invoice: A commercial document issued by a business to the buyer in a given transaction of sale. It generally specifies the names of both parties, the details of goods and/or services being sold, and other basic transactional details of a GST bill.
- Receipt Voucher or Refund Voucher: A document, developed under India’s business laws, that specifies the details on a business receiving advance payment for the purchase of goods or services from a buyer. A receipt voucher is an important proof of receipt of all advance business payments. Under the GST laws, this document is used for refunding the advanced payment back to the buyer if the business is unable to supply the goods and/or services as prescribed in the given terms of trade.
- Bill of Supply: A unique type of invoice provided by a registered business to the buyer for supplying goods and/or services exempted under the Composition Scheme of GST. This scheme makes it mandatory for businesses to issue a bill of supply instead of a tax invoice for all the exempted goods and services listed under the GST.
A business owner needs to implement proper GST billing and produce the necessary types of GST bills to secure the lawfulness of their business in India. With the help of GST billing software, the process of generating GST bills becomes a lot easier and efficient. For example, an online GST billing platform such as Business Bill helps India’s local businesses produce accurate GST bills and tax invoices by offering customization features and producing over six different types of GST bills. Such platforms and accounting software can be of great help for local businesses in India as they are less equipped and underskilled with technology.
Importance of GST Billing and Accounting in India
As illustrated in the above example, there have to be reasons why businesses in India need GST billing software. In fact, there are several key importance for Indian businesses of having a GST billing and accounting process in place.
With the aforementioned example of online Business Bill GST accounting software, you get to know how it can help a local business that has no technical support for its GST billing. In addition to this, the three main importances of GST tax software in India’s business domain are:
#1 ITC Claims
Investment Tax Credit (ITC) allows India’s business owners to get a tax credit for up to 30% of the cost of their business investments. Any advanced accounting software in India generates GST invoices that can help businesses invest more in their own goods and services in order to claim the ITC benefits. Simply put, up to 30% of your investment is not taxable if you use the best accounting software in India and maintain a record of your GST bills.
#2 Proof of Supply
GST bills are important invoices that serve as proof for the supply of goods and/or services by the registered businesses. On the basis of these bills, a business can demand payment from the buyer in the instances of cheque returns, frozen payments, and pending dues.
#3 Time of Supply
GST bills are important business instruments that denote the time when the supply of goods and/or services was conducted. Based on this time, the GST is calculated. The date and the time hold key to the percentage of GST applied to the given transaction. Generating these invoices with a GST accounting software online can help a business maintain records of all the key particulars such as the date and the time of transactions.
All the importances of GST billing makes your business more profitable. And, the best way to generate these GST bills is to use online GST billing software such as the one mentioned in an example earlier. The Business Bill online GST accounting software was of great help to a local business. But, such online GTS billing platforms are also beneficial to mid-sized and businesses in India. Let’s learn more about how your big business can earn even bigger profits by using online GST billing software.
The Benefits of Online GST Billing Software
Like Business Bill, there are several GST tax software and GST accounting software online. All these online tools have several benefits that they offer in common to all their user businesses. Many big companies and business organizations in India are adopting online GST software to avail of some of the following benefits.
- Online GST software keeps business owners more aware and updated about the applicable GST rates and liabilities
- This software has online tools that help businesses know how they can save taxes by changing the destinations of their trade
- Small and mid-sized companies in India get access to pre-design their taxation programs by using these low-cost online billing platforms
- Online GST software such as Just Billing or Business Bill is for their convenient design and robust development
- These online billing systems can help you identify major discrepancies in billing accuracy, processing speed, cost-savings, etc.
- GST for even the most complex transactions of sale can be calculated with this high-end online software
Moreover, if you are into an export business, then online GST billing software can let you enjoy higher production and lower taxation by finding tricks to exempt your goods from heavy GST charges wherever possible.
So, go ahead and secure profitable business for yourself by adopting the best online GST billing software in India.