How To record transactions Under GST Since Good and Service Taxes or GST came into existence with the agenda ' One Nation One Tax', business owners have faced confusions and challenges in the realm of transaction and keeping the records of financial details. Whether it is a small business or a large one, every business have to keep the details of each business transaction. You have to record each sales invoice and purchase invoice systematically. And under the GST, one has to submit the summary of sales and purchases along with tax due and input tax credit on monthly basis to the Government. The process of keeping these records manually a cumbersome and required doubling of the efforts but, thanks to the bookkeeping business software, one doesn't have to worry about recording the details of all the transactions one has made. With the simple bookkeeping software, you can easily accomplish the the data that required in respect of sales, purchases, tax due and input tax credit for the purpose of e-file your GST returns.
What was the old Scenario? Under the pre-GST regime one has to deal with so many separate laws like excise, VAT, CST and service tax and certain other taxes. And for every laws separate compliance procedure needs to be followed that has multiplied the work of business to several fold and moreover the business those who have spread in multiple states have to follow even more tough regime handling with multiple state tax authorities. Under the GST Regime Under GST all the indirect taxes are merged in to one and the businessman has to apply this one tax on all its sales and purchases. Now, the businessman need to maintain following accounts, under GST:
Input CGST a/c Output CGST a/c Input SGST a/c Output SGST a/c Input IGST a/c Output IGST a/c Electronic Cash Ledger (to be maintained on Government GST portal to pay GST)
Though now the businessman is to deal with one tax however they have to keep the separate track of interstate (IGST) and intrastate (CGST+SGST) supply and have to pay the applicable tax accordingly. One have to understand why it is so important to pass accounting entries for the correct GST head. And as GST is a completely new way of taxation it would be difficult initially to understand the concept of interstate (IGST) and intrastate (CGST+SGST) supply,. However here the GST basic bookkeeping software will help to pass the right accounting entries under GST, successfully. In fact, with the complexity involved it is desirable for the registered business owners to buy the license of accounting software for calculating their correct GST liability under different head and for filling their tax returns. How Can Bookkeeping Software Help In Accounting Entries Under GST?
An accounting software will make you free from the stress of maintaining transaction records. It will help you in generating tax invoices, maintaining the guidelines of GST. It will assist you in e-filling of your GST returns. With an accounting software, no longer you will need to prepare the tax invoice or pass accounting entries manually. It will help you to manage your ledger or account book with the happening of transactions like issuing of invoice and registering a purchase.
Therefore, instead of losing your temper in the midst of maintaining transaction records, managing accounting entries, and computing taxes, it would be a smart decision, if you get the easy bookkeeping software.