Common GST Filing Challenges Faced by Businesses - And How LEDGERS Helps

India has introduced a Goods and Services Tax (GST) in order to create a common standardized process of tax collection on all goods and services sold.

The GST is a critical aspect of our economy, but its implementation has created many complexities for businesses operating in India that need to be dealt with on a continual basis. Businesses are required to source large amounts of information from various different places, keep track of multiple revisions and updates from Government authorities and learn how to accurately file GST on time each month.

This article outlines some of the difficulties that businesses currently face when submitting GST returns and details how the software created by LEDGERS simplifies the process of preparing and submitting a company's GST return through automating many processes and creating greater control over data.

Errors When Manually Creating GST

Most businesses continue to use spreadsheets or other disparate means to create invoices and calculate their tax liability.

The use of disconnected tools increases the potential for data entry errors at the time of entry into the system, resulting in the potential for:

• inaccurate tax amounts being recorded.
• missing invoices; and
• discrepancies between the accounting records of the business and what is reported to the Government on the GST return.

How LEDGERS Makes This Process Easier

The unique capabilities of the LEDGERS system allow users to organize invoice and tax data in an intuitive manner allowing users to reduce the number of manual entries.

The ability to create consistency between the records of a business and that of their GST return allows for the elimination of many of the more common mistakes encountered when completing a business's GST return.

Business Records Not Matching the GST Portal

Many businesses face the challenge of reconciling the inconsistent data shown in their accounting records to that shown in the GST Portal.

Often, this problem is created by a delayed upload of the vendor invoices into the Portal, failures in completing the reconciliation or simply missing data, which may result in a notice or need for a Change File.

How LEDGERS Aides in Compliance

LEDGERS allows for easy access to the GST portal data, allowing for quick review of any discrepancies prior to the filing of a Return.

Coping with Input Tax Credit (ITC) Tracking Issues

Each Input Tax Credit reduces the amount of tax due to the tax office, but it can also lead to compliance risks if they are not tracked properly.

Many businesses experience issues when attempting to understand which Input Tax Credits are eligible, when attempting to track them at the invoice level and/or when reconciling them with the returns.

How LEDGERS Assists in Tracking Input Tax Credits

LEDGERS provides comprehensive insight into the Input Tax Credit information for business owners, with the option to track at the invoice level.

This enables them to track Input Tax Credits effectively to ensure compliance with the GST Act.

Managing GST Registrations Across Several States

If you have businesses in several states, managing multiple GST registrations can be a complicated task. As each business must file and report separately, error rates increase due to greater opportunity for error, and increased compliance workload for both.

How LEDGERS Simplifies the Task of Filing Multiple GST Returns

With Centralized GSTIN Management, LEDGERS allows you to manage all your GST Registrations from a single Platform, thus simplifying your Return Preparation and Monitoring Activities and removing the risk of losing sight of your Returns.

The Time Factor of Filing GST Returns

Filing GST Returns often takes a great deal of time, particularly when nearing the Returns Filing Deadline (due to the multiple times you will have to compile your data, validate the data, and upload your data to your Portal). These time constraints can create stress for your Finance Team and consume time needed for other aspects of your business.

How LEDGERS Increases Efficiency in Filing GST Returns

Through the organization of your data in Read-Ready Formats, along with a more efficient Workflow for Filing GST Returns, LEDGERS helps you reduce your last-minute rush to file your GST Returns during Busy Times.

Maintaining Compliance and Avoiding Penalties

Even a single error or missing Deadline can lead to a Penalty, Interest, or a GST Notice. With no reliable systems in place, meeting compliance demands while growing your business can be very challenging.

How LEDGERS Helps to Maintain Compliance

With the use of Structure Workflows and Validation Workflows, LEDGERS enables you to maintain accuracy and confidence while filing your GST Returns.

Reasons why Businesses Prefer to use LEDGERS for GST Compliance:

Businesses use LEDGERS because it provides them with an integrated solution that combines both accounting and GST compliance into one platform. Some of the benefits of using LEDGERS include:

• Less Manual Work
• Better accuracy in GST data
• Improved control over compliance activities
• Ability to Compile and File Returns Faster and with Fewer Hassles

Conclusion:

GST compliance will always require your attention, but it does not need to be difficult or stressful. By implementing the proper tools, you will have the ability to effectively manage your GST obligations while at the same time reducing the number of errors and delays associated with the filing process. With LEDGERS GST filing software, you will have an easier and more reliable way to complete your GST compliance requirements, giving you greater clarity and confidence when it comes to filing your returns.