What is GST???
“The current tax system in India is complex, making it hard for business owners to comply with regulations. This is mainly because there are multiple taxes that need to be filed with multi-level tax authorities. It comes as no surprise that Indians on average spend 241 hours per year on tax preparation and filing” -World Bank Survey, 2016
The new GST law will simplify the current tax system by replacing multiple indirect taxes with a single, straightforward tax. The GST will have THREE components:
- Central GST (CGST) which needs to be filed with the Centre
- State GST (SGST) filed with the State.
- Integrated GST (IGST)
This simplifies the entire process for businesses because each component of the GST has its own clearly defined tax authorities. Business owners will know where to file taxes.
Since the GST is a complete transformation of the existing tax system, quite a few changes in financial compliance requirements are mandatory. It may be a bit troublesome to think of modifying the way we have been doing business for so many generations. Altogether a new environment of creating paperwork, tax preparation steps, and filing processes to submit the compliances may seem to be critical.
But with use of Bizgaze, Automation Suite – We make your business ready for GST unworried.
Setting up GST rates
The GST will have a four-tier tax structure consisting of
- Higher rate -28%)
- Medium rates -18% and 12%
- Lower rate -5%
- No rate or a zero rate (0%).
These rates depend on the type of goods and services you promote.
Since GST has dual components, these rates will be split equally between the State and the Centre.
For example, if GST for a product is levied at 12%, then 6% will be levied by the State and 6% will be levied by the Centre.
For interstate transactions, there is an Integrated GST (IGST) that combines central and state GST components. This requires a major change in the way you calculate and track taxes for all your transactions.
Bizgaze is built to handle GST calculations for all. We can set up different GST rates applicable for your business and have Bizgaze automatically calculate the tax for each sale and apply it to your invoice instantly. This reduces the chances of making errors in tax calculations.
Updating GST Information
for a Customer or a Vendor
The Ministry of Finance has released a draft of the GST invoice rules, which specifies the elements that every tax invoice must contain.
For example, they must include the name, address, and GST Identification Number (GSTN) of both the seller and the customer, as well as the place of supply.
In Bizgaze, we can update the GSTN number in the individual Customer or Vendor details or can be uploaded in the Master Upload feature in CRM.
HSN –Harmonized System Nomenclature mapping
If you are exporting or importing products, your invoices must include HSN or Harmonised System Nomenclature, a tax code which specifies the tax rate applicable for the products that you sell, along with the GST rate.
With our Bizgaze HSN Can be added manually or can be uploaded for all variants in the Master upload feature in CRM which is inbuilt.
Alternatively,This configuration is directly made when implementation cycle kicks off and the master databases can be uploaded through .xlsx uploads(Bulk Uploading).