The current tax system in India is complex, making it hard for business owners to comply with regulations. This is mainly because there are multiple taxes that need to be filed with multiple tax authorities. It comes as no surprise that Indians on average spend 241 hours per year on tax preparation and filing (World Bank Survey, 2016).
Setting up GST rates
The GST will have a four-tier tax structure consisting of a higher rate (28%), standard rates (18% and 12%), a lower rate (5%), and a zero rate (0%). These rates depend on the type of goods and services you sell. Since GST has dual components, these rates will be split equally between the State and the Centre. For example, if GST for a product is levied at 12%, then 6% will be levied by the State and 6% will be levied by the Centre. For interstate transactions, there is an Integrated GST (IGST) that combines central and state GST components. This requires a major change in the way you calculate and track taxes for all your transactions.
Zoho Books is built to handle GST calculations for you. You can set up different GST rates applicable for your business and have Zoho Books calculate the tax for each sale and apply it to your invoice instantly. This reduces the chances of making errors in tax calculations.
Customising your tax invoices
In Zoho Books, all the details of both the seller and the customers, along with the HSN code, and the corresponding GST rate are automatically filled in when invoices are created. Zoho Books also comes with fully customisable invoice templates. This means you can add and rearrange information fields in your invoice templates as needed. You can also set your own format for the invoice numbers that are generated automatically when invoices are created. Zoho Books will ensure that you follow GST’s invoicing rules and regulations.
You can file GSTR1, GSTR2, and GSTR3 within Zoho Books in a single click, without having to spend time trying to enter transactions or fill in forms manually. All your sales and purchase information are automatically sent to the Government by Zoho Books when you file returns. To help you ensure that you file your returns on time, you will be notified automatically a few days before the filing deadline every month.
Go beyond tax compliance; get prepared for the future
Adapting to a new tax system can be challenging, especially if it requires you to change key business functions that you’ve been doing a certain way for a long time. With a proper Zoho Books, you can streamline the entire process, save time, and reduce inaccuracies in your tax preparation. Switching to Zoho Books is not just about tax compliance; it gets you ready for any other changes that you may need to make to your finances in the future. Sign up for Zoho Books today and future proof your accounting.