The government and GST Council collectively are trying to transform the Goods and Services Tax in order to make the process easy for the people to comply with. The process to make the return filing process easier will ultimately liberalize the entire rules and regulations of the new taxation regime. And the simpler taxation process to return would give a boost to the government revenues.
The people involved in the small businesses and small-scale trading account for the larger part of the taxpayers of the nation. The council is planning to modify the way the purchase return filing and comprehensive monthly return filing occur. The people might only have to, instead of filing a comprehensive return, file a summary return that will be sufficient in order to provide them with the benefit of the tax credit.
As per the research was done on the new businesses in India, the government has figured that about 36 million small and medium enterprises are fully-functional and mostly in the rural areas of India. Moreover, these enterprises have employed over 80 million people. Thus the government, identifying the core of the revenue in the nation, have made up its mind to give such businesses a leverage of three to six months to shift to the new taxation regime and get their businesses registered.
Whereas on one hand, the government is trying to stabilize the taxation process by changing schemes and modifying the return filing process, the people with technology have also taken the charge in order to make the taxation easy.
The leap of technology
The government has recognized the loophole that the people in the rural areas associated with the small and micro businesses require the real support. Hence, the council introduced many helpful changes in the process. And disclosing the innovative side of the tech world, the companies with high-end and compatible GST tool have taken over the taxation field to help the people at a minimal cost. And combined with the lucrative proposals of the government for the ease of taxation, the tool-assistance has, to a great extent, made GST effortless. Here’s how:
- Bills and invoices– As per the rules and regulation of the new taxation regime, the creation of the bills and invoices and keeping the record of every supply of goods and services is highly required in order to file successful tax returns. The tool basically helps in an easier and hassle-free creation of invoices which often requires a minimum output of the user. Once the information is feed into the software, form next time onwards, it will automatically retrieve the information while the user tries to make a new entry.
- GSTR forms– One of the highlighting features of an efficient GST tool is that it enables the user to have an instant access to all the forms that are required to file returns under the Goods and Services Tax Act. Not only the tool makes you easily access the documents but also organizes your sales/purchase data so that it could easily relate to the forms and an error-free return could be filed in a time-effective manner.
- Applicable tax rate– With the high-end technology, the tool helps the user in the actual calculation of the taxes. As everyone is aware of the five different slabs on which the whole GST is placed. These five slabs of the tax percentage are 0%, 5%, 12%, 18%, and 28%. A person is more likely to make mistake while calculating the applicable tax on his business. On the other hand, the usage of GST tool for the tax calculation completely eliminates the chances of occurrence of any type of mistake.
The changing era of taxation in the nation is taking the ill-effects of the earlier system away. The technology taking control all over in various ways is befitting to the people especially of a developing nation. And besides providing multiple benefits for GST regime, the technology also adds to the credibility of the living standards of people. With both, the government and people running at the same pace would bring the nation to a level that will result in the formation of a corruption-free nation.