The most common question asked by many SMEs right now is the required to have software for migration or implementation or filing returns for the GST. There are many software which are available in the market by the GSP service provider starting from range of Rs 3000 to 25000. Are these software’s really worth? Do your organization really require GST software? 

In past the government has always provide utilities to file returns under excise, service tax and VAT. The returns software or utilities provided by the government are free of cost and any individual can download the utility online and find the returns under excise, service tax and VAT. The government has specifically stated while communicating with the general public that there is no requirement to use service of GSP provider GSTN Suvidha Provider and one can download online utility and file returns for free of cost. To take service from them is optional and one can always use free utility provided by government.

So for small entity who has limited turnover can continue use of existing method of book-keeping and accounting and use government free utility to file returns. Software provider may be required in the business where there is a huge volume of supplies, inter -and intra state supplies and there is a requirement of a maker checker system. Such organization can continue using existing software like Tally or ERP for accounting and filing GST returns. But the real question is do the small and medium enterprise SMEs requires a software? The answer is it all depends on the volume and complex nature of transaction the transaction. Usually all SME may require one time help of professionals to create a set up, and may require help at initial stage of chartered accountant but once process is defined it is routine for filing requirement and only a periodic review by professional should suffice

Following are the Four Categories of Tax payers in GST and return filing requirement

1)   Aggregate turnover less than Rs. 20 Lakhs

No Required to Take GST Number So No Filing Requirement

2) Aggregate turnover up to Rs.75 Lakhs and availing the composition scheme

No invoice wise details required only summary of Supplies in Form GTR 4 and Quarterly Filing Required. It is advice to use free utlity software which will be provided by government. For entity dealing in b2c businesses the filing requirement does not require them to give invoice wise details, only simple supllies summary is required, such filing can also be handle easily by the government utilities and even they may not require a GSP service provider or a software

3) Aggregate turnover more than Rs. 20 Lakhs and availing the composition scheme but supplying to consumers B2C

No invoice wise details required only summary of Supplies in Form GTR 1,2,3 and Monthly Filing RequiredIt is advice to use free utlity software which will be provided by government. For entity dealing in b2c businesses the filing requirement does not require them to give invoice wise details, only simple supllies summary is required, such filing can also be handle easily by the government utilities and even they may not require a GSP service provider or a software

4) All other suppliers including suppliers to re-sellers and/ or consumers (both B2B and/ or B2C supplies)

Invoice wise details of all B2B. Tax- rate wise summary of B2C . Form GTR 1,2,3 and Monthly Filing Required It is advice to use free utlity software which will be provided by government. However if the volume of transaction is huge then an ERP based software is recommended for proper maker checker. 

 

Summary of Software requirement

Category of Taxpayer

Details to be given Form to be used and periodicity of filing

Software Required

Aggregate turnover less than Rs. 20 Lakhs

No Required to Take GST Number So No Filing Requirement

NA

Aggregate turnover up to Rs.75 Lakhs and availing the composition scheme

No invoice wise details required only summary of Supplies in Form GTR 4 and Quarterly Filing Required

Use Free Govt Utility once out as need to provide only summary

Aggregate turnover more than Rs. 20 Lakhs and availing the composition scheme but supplying to consumers B2C

No invoice wise details required only summary of Supplies in Form GTR 1,2,3 and Monthly Filing Required

Use Free Govt Utility once out as need to provide only summary

All other suppliers including suppliers to re-sellers and/ or consumers (both B2B and/ or B2C supplies)

Invoice wise details of all B2B. Tax- rate wise summary of B2C . Form GTR 1,2,3 and Monthly Filing Required

Use Free Govt Utility once out as need to provide Invoice wise details

* Government will provide Free Utility Software for all filing requirement   Powered by Expertmile.com

* No need to buy software from GST Suvidha - GSP - GSTN unless multi state huge volume

 

Myth and reality on GST return filing and use of software:

Myth1: Every tax payer has to file invoice wise details in the return using software

Reality: Only suppliers to re- sellers (B2B suppliers) not under composition scheme have to file invoice wise details and not all. Using of Software is optional.

Myth 2: There are 3 returns to be filed every month using software

Reality: There is only one return to be filed by the taxpayer with other components getting auto- populated. And no external software is required.

Details to be given at the time of return filing:

Category of Taxpayer

Details to be given

Form to be used

Periodicity/ last date

Aggregate turnover less than Rs. 20 Lakhs

Nil

Nil

Nil

Aggregate turnover up to Rs. 75 Lakhs and availing the composition scheme

  • Consolidated details of outward supplies made by you during the quarter including that of advances received
  • Details of supplies received (auto-populated from GSTR-1 of the supplier)

FORM GSTR- 4

Quarterly/ 18th of the Month following the quarter

Aggregate turnover more than Rs. 20 Lakhs and availing the composition scheme but supplying to consumers

Tax- rate wise summary of all intra- state supplies made

FORM GSTR- 1

Monthly/ 10th of the following month

Supplies received

FORM GSTR- 2

Auto- populated by the computer and only needs to be verified and submitted by 15th of the following month

Final return

FORM GSTR- 3

Auto- populated by the computer and only needs to be verified and submitted by 20th of the following month

All other suppliers including suppliers to re-sellers and/ or consumers (both B2B and/ or B2C supplies)

  • Invoice wise details of all B2B supplies and intrastate B2C supplies of value above Rs. 2.5 lakh
  • Tax- rate wise summary of B2C intra-state supplies
  • State- wise and tax rate wise summary of B2C inter-state supplies of value below Rs. 2.5 Lakhs

FORM GSTR- 1

Monthly/ 10th of the following month

Supplies received

FORM GSTR- 2

Auto- populated by the computer and only needs to be verified and submitted by 15th of the following month

Final return

FORM GSTR- 3

Auto- populated by the computer and only needs to be verified and submitted by 20th of the following month

Remarks: Even in case where the details of invoice has to be provided, an offline free software utility by GSTN can be used during the month, which can automatically convert into return on uploading.

Provisions for first two months of transition

Return filing process has been simplified and a simplified form GSTR- 3B, containing only summary details, has been provided for all classes of tax payers for acclimatization of the taxpayers with the new r

Return for the month of

GSTR-1

GSTR-2

GSTR-3B

July 2017

5th September instead of 10th August

10th September instead of 15th August

20th August

August 2017

20th September instead of 10th September

25th September instead of 15th September

20th September

For any query you can write to Chirag@cachauhan.in . Before making any decisions do consult your Professional / tax advisor.  Author does not take any responsibility for misrepresentation or interpretation of act or rules. Neither the author nor the firm accepts any liability neither for the loss or damage of any kind arising out of information in this document nor for any action taken in reliance there on.

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CA Chirag Chauhan

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Chartered Accountant, CA Chauhan



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    I hope by reading this article you got enlighten on ,Do you really require to buy Software for GST? further to mention before taken any financial decision based on this content it is prefered to take an expert opinion as matter can be subjective.