GST is almost here and you must be wondering about lot of things, like – how this is going to impact my business, which vouchers will change, what are the minimum things I need to do in order to comply with GST and so on.
We know this is going to be confusing and sometimes uncertainty causes fear. Don’t worry, you’ll get the clarity about GST changes in this article.
At ProfitBooks we are working round the clock to make our software GST compatible. Our goal is not only to add GST related features but to make everything so simple that even a non-accountant business owner can confidently comply with the new tax laws.
So, after 1st July 2017, you can expect following changes in ProfitBooks:
1) Company Settings (Updated in ProfitBooks now)
I’m sure you must have done your GST registration by now. You’ll need to enter your unique GSTN number in the system. In GST, a lot of importance has been given to the place of supply. So, you’ll need to specify your detailed company address.
Apart from that, system will ask you if you are a part of GST composition scheme, if you export goods/services or if you are an e-commerce retailer.
2) Customer and Vendor Screen (Updated in ProfitBooks now)
New customer and vendor creation screen will look much simpler. You’ll need to enter GSTN of your customers and suppliers. Presence of GSTN will determine the type of tax charged for that customer. This will also determine if the invoice is B2B or B2C. So, please make sure that you update it correctly.
You’ll also need to correctly enter billing and shipping address for calculation of CGST and IGST.
3) Product Screen (Updated In ProfitBooks Now)
While creating a new product, its now mandatory to mention if its an inventory or a service. Apart from this, you’ll need to enter HSN code for that item.
Government has announced GST rates for HSN codes recently and we’ve already created that database in ProfitBooks. So, when you select the HSN, system will suggest which GST rate is applicable for that item.
4) Invoicing (Updated in ProfitBooks now)
This is going to be the most important change. Invoicing is something which is used almost 80% of time by businesses and after GST rollout, your invoices need to be in a specific format.
At ProfitBooks, we’ve taken utmost care to ensure that our customers do not get confused by the new format. Your invoice creation screen won’t look too different but the final PDF will be according to the format prescribed by Government.
5) Purchases (Updated in ProfitBooks now)
Similar to invoices, there will be changes in purchase recording screen as well. You’ll need to mention the GSTN of your supplier along with his address and other details.
If you’ve mentioned these details at the time of vendor creation, system will automatically pull those details. Purchase voucher will also contain details about CGST/SGST/IGST and reverse charge.
6) Delivery Challan
Delivery challan will now contain details of goods supplied and the applicable taxes. GST council is still working on the format and rules.
ProfitBooks will be updated automatically once we get more clarity about the changes.
7) Advance Receipts
This is also an important change. Earlier, we used to just mention the details of payment and customer while creating an advance receipt voucher. After GST rollout, advance receipt will contain details of goods or services for which that advance payment is received.
So, you’ll see options to enter items while creating an advance receipt. ProfitBooks will automatically pull GSTN details of the customer.
8) Credit Note & Debit Note
Like advance receipts, its now mandatory to mention item details on Credit Note and Debit Note. Now, you’ll be able to create a credit note from an invoice so that it will be linked with it. You’ll be able to change quantity and rate of the items and based on that ‘differential value’ will be calculated. It will be later reported in GSTR-1.
Similarly, debit note will be created from a purchase voucher and it will also contain details of the goods or services.
9) GSTR-1 Filing (Sales Upload)
This is going to make your life super simple. With ProfitBooks you’ll be able to file your GSTR-1 in just one click!
You’ll see a new menu to work on your GSTR-1 in which you need to upload your invoices to GSTN portal. ProfitBooks will automatically fetch invoices, credit notes and debit notes, advance receipts from the previous month and show you a summary.
You’ll be able to review them and upload directly to GSTN portal with one click. Due date for completing this activity will be 10th of every month.
Read about types of GST Returns.
10) GSTR-2 Filing (Purchase Reconciliation & Upload)
By 15th of every month, you’ll need to reconcile purchases uploaded by your supplier using GSTR-2A and then file GSTR-2. ProfitBooks will show you simple option to correct mismatches and complete the reconciliation process.
You’ll be able to file GSTR-2 directly from ProfitBooks. Later option will be enabled to file monthly return – GSTR -3 by 20th of every month.
11) Electronic Ledgers
ProfitBooks will fetch sales and purchase ledgers maintained at GSTN portal and show them to you in an easy to understand format.
So, there is no need to ever login to Government website to find any discrepancies.
12) Recording Tax Payments
Finally, ProfitBooks will add a new screen to record your tax payments. You’ll need to just enter the payment details and ProfitBooks will take care of the accounting part.
Simple! isn’t it?
Government is regularly making changes to the GSTR formats and announcing new rates and rules. We’ll keep updating this article as when there is any change in the system.
We understand the even after making our software super simple, businesses are going to need an expert help to comply with new GST regime. That’s why we’ve roped in experienced CAs and Tax consultants who can assist you with everything related to GST.
You can contact us if you need more details about the assisted CA service.
Also read about GST related articles.