The Complete Guide To GST Billing Software

Author: Marg Erp

Introduction

With the introduction of GST billing software, which was created to address the shortcomings of the indirect tax systems, the Indian tax system was completely transformed. This marks an important shift in the taxation system of the country following its independence. The total quantity of GST collected by the federal and state governments as of September 2023 was INR 1.62 trillion. This month's collection is the fourth-highest since the indirect tax regime's inception. The structural change and improved management efficiency are the reasons behind the surge in GST collection.

In India, companies that violate the GST Act's provisions risk facing legal costs for their failure to do so. However, creating GST-compliant invoices by hand is a laborious and wasteful process. If you wish to use the outdated Excel application, it is ineffective.

to immediately post your sales orders and invoices to the tax portal. So how should a firm handle its finances and billing? Software for GST billing is the solution.

Benefits of GST Billing Software

Businesses may create and handle GST-compliant purchase orders, sales orders, purchase orders, service purchase orders, and other documents with the help of the GST billing software. This software is a third-party tool or program that offers several functions to help businesses track payments, manage inventories, handle invoices, compute taxes, keep an eye on financial activities, and provide reports. In essence, it is an automated solution that ensures GST compliance while automating the billing process. From the preparation of invoices to the filing of returns, the GST billing software acts as a complete instrument to ensure GST compliance.

The increasing popularity of online tax filing and invoicing in India has led to a growing need for improving the efficiency and accuracy of e-invoicing and GST filing.

Only companies that submit exact bills and properly calculate the costs are eligible to get benefits from input tax credit (ITC) claims. Businesses lose money when there is non-compliance with GST because of incorrect GST calculations and penalties. GST-compliant invoices are a requirement for ITC, which helps small and medium-sized enterprises manage their cash flow.

Businesses must keep all invoices, confirm validity, check the data format, upload correctly, and format the file appropriately to make sure they may submit for ITC. The development of GST billing software has eased this labor-intensive and time-consuming procedure.

Some of the benefits of using GST billing software are

  • Assure GST Compliance: By accurately calculating taxes, creating correct invoices, and timely completing GST returns that comply with the laws and regulations, you may avoid fines and legal problems.

  • Automate Billing and Invoicing: By automating every step of the billing and invoicing process, you can cut down on human error and save time and effort on transaction reconciliation, GST calculation, and invoice preparation.

  • Promote Quality: By using automated GST and tax processing, mistakes in tax calculations and invoices can be reduced or eliminated.

  • Real-time Updates: Update your invoices by the most recent standards and laws by using the most recent and updated data that comply with GST.

  • Faster Invoicing: Generate invoices more quickly and efficiently by using templates and pre-configured data.

  • Automate the Filing of GST Returns: To expedite the filing process, file GST returns straight from the program.

  • Assure Data Security: When managing important financial information, automate data security using common encryption and safe data storage.

  • Collaborate with the Finance Team: By having a single location for billing, invoicing, and tax preparation, the finance team members will be able to communicate and collaborate more effectively.

  • Creation of GST Reports: Gain deeper insights into corporate financials by creating a variety of reports with a few easy clicks, including purchase overviews, service purchase summaries, sales reports, and order summaries.

  • Real-time Inventory Management: Use the automated invoicing and billing software to monitor stock levels and manage inventory in real time.

  • Grow customer and supplier interactions: Use a single platform to use the visibility of GST billing software to enhance customer and supplier interactions.

  • Minimize Operation Cost: By automating billing processes and record-keeping and using a single piece of software to handle all firm financials, you may save time and money.

  • Prepare for an audit: To increase reliability and openness, keep a thorough record of all financial transactions involving your company.

  • Access invoice and billing information anytime, anywhere: With cloud-based GST billing software, you can access your banking, invoicing, and billing information from any location at any time.

  • Simple Data Export: To simplify corporate finance operations, export firm financial reports to accounting software like Tally according to your demands.

Choosing the Right GST Billing Software for Your Business

Automating your company's banking, invoicing, and billing procedures is required for the finest GST billing software. Not every GST software is helpful, though. You need to make sure that your software solution includes some of the fundamental capabilities that let you simplify your billing and invoicing process, regardless of the cost. The following are some characteristics of GST billing software to look for:

1. User-Friendliness

Ease of use is the primary goal of billing automation software. It must be possible for the user to make bills and invoices using the program, even if they lack in-depth financial understanding. The program shouldn't have a significant learning curve to get started with.

2 Insurance of GST Compliance

The software must constantly ensure GST compliance. SGST, CGST, and IGST must be applied automatically, depending on the transaction's location and type. Additionally, GSTIN validation and verification must be supported.

3. Complete Dashboard

The process for the billing and invoicing automation software has to be improved. You need to have a full dashboard with your software that shows your purchases, sales, cash balance, and other information. Making business choices based on data will be possible for you if you have all the financial information on one dashboard.

4. Billing and Invoicing Template

With a few clicks, you can produce invoices and bills using common layouts. When you alter these templates, you can also include company names and logos. Verify that the application created both of the invoices.

5. Simple Filing of Returns

You should be able to fully automate the preparation and submission of GST returns using the GST billing software. Direct export of GST reports to the GST portal must be possible.

6. Support for Multiple Locations and States

State-by-state variations exist in the GST laws, and your invoicing software has to be flexible enough to accommodate them. In light of the data on the invoice, it needs to appropriately apply the GST rates.

7. Support for Multiple Users

A completely working GST billing software must be able to conveniently provide support for multiple users. To properly cooperate, numerous users must be able to access the invoicing software, and you must be able to manage several firms with a single account.

8. Bank Reconciliation and Cash

With continuous monitoring and tracking of various cash and bank activities, the billing, payment, ordering, and invoicing application should also make it simple for you to reconcile bank accounts.

9. Keeping an Inventory

The GST billing software should handle your inventory tracking and update the system depending on stock movements, just as you update orders and purchases.

10. Extensive Reporting

Reporting capabilities are one of the most important aspects of GST billing software that you cannot skimp on. With only a few clicks on the program, you must be able to produce several kinds of GST and financial reports.

11. Capabilities for Integration

Your GST billing software has to make it simple to integrate with accounting programs, e-commerce platforms, e-invoicing portals, and GST portals.

12. Reliable Information Protection

To protect private financial and corporate data, the program has to include robust data encryption and secure storage features.

13. Management of Suppliers and Customers

The billing software should also automate vendor and customer data administration, which will increase the visibility of your suppliers and customers. With only one click, you'll be able to retrieve information about customers and suppliers.

14. Simple access

Without incurring IT expenses, you may use a cloud-based application to access the program straight from a browser. You will be able to handle invoicing and tracking while on the move if your GST billing software provides mobile accessibility, such as a dedicated mobile app.

15. Compliant in real-time

Over time, the GST laws will continue to evolve, and your billing software has to adapt accordingly. All of your billing and invoicing processes must always abide by the laws and regulations around GST.

Typical Errors in GST Billing Software Utilization

To simplify taxation, the Goods and Services Tax (GST) was implemented to replace other indirect and direct taxes, including excise, service tax, VAT, and other taxes. The consolidation of tax policies enables company owners to more effectively monitor their tax payments. You may avoid errors while reporting your GST in several ways with the aid of the GST billing software. Among the typical errors to be aware of are:

  • Incorrect data entry while filing the GST return

  • Selecting the incorrect kind of invoice and

  • Putting the incorrect GST number in the wrong kind of GST

  • The invoice does not include the HSN code.

  • Relating zero-rated materials to nothing at all

  • Not filing GST returns when there are no sales

  • Improper input of data while utilizing the GST portal

  • Differences between GSTR reports

With automation, all of those mistakes may be avoided when using the finest GST billing software. To ensure that the bills and invoices are always GST-compliant, the program automates the populating of customer, supplier, and product data, minimizing data entry. Additionally, all human mistakes are removed when GST reports are uploaded directly to the GST system.

With Marg ERP, an industry-leading free GST billing tool, you can automatically generate GST-compliant invoices and bills for your company. For your company, this cloud-based software solution improves banking, inventory, billing, and invoicing.

Make sure your purchase and sales orders are automatically filled in so you get appropriate tax computations. As the program extracts the data from the master system, be sure to avoid errors regarding the GSTIN information of suppliers and customers. You may specify the GST for each product so that the appropriate GST is applied based on the location each time a sales order or purchase order is produced.

Along with the HSN/SAC codes for every good and service, the automatic invoice creation makes sure you always submit the proper GSTIN number for your supplier and customer. Errors cannot occur since this data is automatically filled in when producing an invoice or bill because it is recorded in the master system.

To correctly apply SGST, CGST, or IGST while running a business in various states, all you have to do is choose the appropriate location.

Marg ERP produces many GST reports automatically, including GSTR-1, GSTR-3B, and GSTR-3. The pertinent bills and invoices are automatically pulled from the main database. It improves GST report accuracy to help you avoid paying tax fines. With just one click, you can quickly produce an Excel file and send it straight to the GST site.

Your financial information is securely protected, so you can relax.

If you operate more than one firm, you may use the same platform to manage them all with a single Marg ERP account. Consolidated information about your enterprises will be shown on your dashboard, so you can gain insight into GST compliance.

Take Advantage of the GST Billing Software Cost Reduction

There are several ways in which using GST billing software online in India may save on total business expenses. Small-business entrepreneurs are always searching for methods to operate their companies more cheaply. During the Marg ERP, billing software is completely available to use. To use, test, and explore all of the capabilities of the program

Conclusion

The GST tax system is advantageous to all types of businesses, and the government gains from it as well because it provides accurate GST receipts. The eCommerce sector has grown as a result of the tax system's simplification, and this has aided in the expansion of SMEs and start-ups in India. With all-inclusive GST billing software to automate your banking, invoicing, and billing procedures, you can now run your company without a professional finance team.