GST - Accounting and Software - How to Decide ?

GST is not just a tax reform, It is also a reason for many industries to cheer, specially hardware & software. To encash advantage of processes set in GST for record keeping many new companies have emerged with so many products to fulfill demand arisen on account of GST. There are two options, You can buy a software only, or a complete system (Hardware i.e. desktop/notebook/laptop with inbuilt GST Softwares). You can buy an average software from Rs. 5K (Single User) to Rs. 60K (Multi-User) or Complete System (HW+SW) from Rs. 20K to Rs. 75K. Many companies have come together to supply complete systems e.g. Lenovo launched GST Advantage (collaborated with Intel and three solution providers: IDOS, Marg and WeP Digital). Invoicing software by KPMG alongwith HP with cloud facility. Bizguru by Acer & Tally.

I would like to share some tips to help to take a decision on which software to Choose:

1. Analyze your current software: Most of the software companies have already launched updated versions of their software. Available at minimum cost. If Such a case, To save time on Re-setting of Accounting, Inventory & Tax Masters and regenerate & redesign formats for reports, continue with your existing software, I believe in most of the cases it would be Tally & Busy.

2. If you are exempted (Turnover upto Rs. 20 Lakh) or Composition dealer (Turnover upto Rs. 75 Lakh), can wait for some time. In due course many modified versions of software will be introduced.

3. If you are using customized software (developed in house or by a software company to meet your industry specific needs) and now want to try another software. Mind following points while choosing your next software:

a) It should be integrated accounting software. Just not an invoicing software. Must be able to take care of Invoicing (in GST Prescribed Format), Stock records, could prepare various GST Returns.

b)Great, if have reconciliation facility for vendors and customers. It will help you to finalize data in case of any mismatch found in GSTR-1 and GSTR-2.

c) Can create GST Payment Challan.

d) Alarming facility, e.g. if Goods Returned, to alarm to issue credit note, for goods sent to job worker, for cenavt availed but no payment made within 180 days etc. Check how much can be automated in the software.

e) Able to customize input cells e.g. GSTIN, PAN for Alphanumeric Formats and making mandatory HSN and SAC Codes in Invoices. (To link with inventory codes).

f) Prefer software that keeps your data on cloud to share real-time data with your consultant, or accessible to you and all important persons in the organisation.

g) Apart from the point mentioned above, all basic features of an accounting software. Able to generate all relevant reports.

4. At last, if you do not have budget or you are a small trader or your transactions are very limited in terms of numbers (may be large in value), do not worry, you can maintain your accounts as you were keeping. Govt is establishing GST Centers in all areas to facilitate all GST Tax-payers who are not able to afford high end technology to meet GST Compliance or who need support, their they can file all returns and keep track of their accounts. 

Remember GST is just not a change in Tax System, It is going to change entire business culture related to tax compliance. 

Keep Enjoying GST. :)

Sukhvinder (@sukhcma)