NEW FEATURES OF GSTN THAT YOU NEED TO KNOW?
INTRODUCTION
The Goods and Services Tax Network (GSTN) in India had introduced several new features and enhancements to improve the efficiency and effectiveness of the GST system. Please note that there may have been additional developments since then, so it’s advisable to check the latest updates from GSTN and the government authorities. Here are some of the new features of GSTN that were introduced or planned up to that time:
some of the advantages of the new features of GSTN:
Improved Compliance: The new features make it easier for taxpayers to comply with GST regulations, reducing errors and enhancing the accuracy of returns. This leads to better compliance rates and increased tax revenue for the government.
Simplified Tax Filing: Auto-population of returns and offline filing tools simplify the process of tax return filing, saving time and effort for businesses. This encourages more businesses to file their returns on time.
Enhanced Transparency: Features like e-invoicing and QR codes on invoices improve transparency in transactions. This helps tax authorities monitor business activities more effectively and reduces the scope for tax evasion.
Real-time Reporting: E-invoicing and real-time reporting enable tax authorities to access transaction data promptly. This facilitates quicker verification and audit processes.
Reduction in Tax Evasion: The new features are designed to minimize tax evasion opportunities, as they provide tax authorities with real-time insights into business transactions and invoices.
Faster Refunds: Expediting refund processing benefits businesses by providing faster access to their working capital. It also encourages businesses to export and invest more.
Ease of Reconciliation: The Matching Tool for reconciliation simplifies the process of matching input tax credit (ITC) with purchase records, reducing errors and disputes.
Digital Adoption: The adoption of digital tools and features encourages businesses to move away from paper-based processes, which enhances efficiency and reduces paperwork.
User-friendly Interface: Many new features come with user-friendly interfaces and offline tools, making it easier for businesses to navigate and use the GST portal effectively.
GST Practitioner Enrollment: The enrollment of GST practitioners allows businesses to seek professional assistance in compliance, which is particularly helpful for smaller businesses and startup.
some of the disadvantages of the new features of GSTN:
Learning Curve: Businesses and taxpayers may need time to adapt to the new features, which can lead to a learning curve. This may require additional training and resources to understand and effectively use the system.
Technical Issues: Like any digital system, GSTN can experience technical glitches or downtime, which can disrupt compliance processes and cause frustration for users.
Data Privacy Concerns: With the collection of extensive transaction data, there may be concerns related to data privacy and security. Ensuring the protection of sensitive financial information is essential.
Increased Compliance Burden: Despite efforts to simplify compliance, the introduction of new features can initially increase the compliance burden for businesses as they adjust their processes to accommodate these changes.
Costs of Integration: For some businesses, integrating their accounting and ERP systems with GSTN through APIs may require investments in technology and software, which can be costly.
Dependency on Technology: Businesses become increasingly reliant on technology for compliance, which can pose a risk if technical issues or cyber threats disrupt operations.
Potential Errors: While automation reduces errors in compliance, it’s not foolproof. Incorrect data entry or system errors can still lead to inaccuracies in returns and reporting.
Inequities in Access: Smaller businesses, particularly in rural areas, may face challenges in accessing and effectively using the new features due to limited digital infrastructure and resources.
Reliance on Government Systems: Businesses have to rely on the stability and effectiveness of government systems and infrastructure for successful compliance. System outages or inefficiencies on the government’s end can impact businesses.
Resistance to Change: Some businesses may resist adopting new features, especially if they have established processes and systems that are not easily adaptable.
some specific examples of how these benefits can be realized:
- The auto-population of GSTR-3B can save taxpayers time by automatically filling in the return with data from their GSTR-1 and GSTR-2 returns. This can be especially helpful for businesses with a large number of transactions.
- The communication between taxpayers feature can help businesses to resolve disputes or clarify transactions by allowing them to communicate directly with each other on the GST portal. This can save time and money by avoiding the need to file paperwork or hire lawyers.
- The additional trade name feature can be helpful for businesses that operate under multiple names by allowing them to add an additional trade name to their GST registration. This can make it easier for businesses to track their transactions and to comply with the GST law.
- The improved search functionality can make it easier for taxpayers to find the information they need by providing a more comprehensive and user-friendly search interface. This can save time and frustration by making it easier to find the information you need.
- The new training modules can help taxpayers understand the GST law and procedures by providing them with a more comprehensive and up-to-date understanding of the law. This can help taxpayers to comply with the GST law and to avoid penalties.
CONCLUSION
Overall, the new features of GSTN offer a number of benefits for taxpayers. However, it is important to be aware of the challenges associated with these new features and to take steps to mitigate them. By doing so, taxpayers can maximize the benefits of the new features and ensure that they are compliant with the GST law.
HOW AURIGA ACCOUNTING HELP YOU
Education and Training: Auriga Accounting can provide comprehensive training and education to your finance and accounting teams. This includes explaining the new features, their implications, and how to use them effectively to stay compliant.
Customized Solutions: The firm can offer tailored solutions based on your specific business needs and industry. This includes assisting with system customization and integration to ensure seamless GSTN interaction.
Integration Support: If your business uses accounting or ERP software, Auriga Accounting can help integrate these systems with GSTN. This ensures efficient data flow and reduces manual data entry, saving time and reducing errors.
Technical Assistance: Auriga Accounting provides technical support and troubleshooting services. They can address technical issues, system glitches, or challenges related to using the new features effectively.
Data Security: To address data privacy concerns, Auriga Accounting can help you implement robust data security measures. This includes encryption, access controls, and data protection protocols to safeguard sensitive financial information.
Compliance Management: Auriga Accounting can assist in managing your GST compliance efficiently. This includes using the new features to streamline compliance processes, reduce errors, and ensure accurate filings.
Audit Support: In the event of tax audits or scrutiny by authorities, Auriga Accounting can provide guidance and support. They can help you gather required documentation, respond to inquiries, and navigate the audit process.
Cost-Benefit Analysis: The firm can conduct a cost-benefit analysis of the new GSTN features. This helps you assess the impact on your operations, make informed technology investments, and optimize your resources.
Documentation and Record-Keeping: Auriga Accounting can help establish effective documentation and record-keeping practices aligned with the new features’ requirements. This ensures that you maintain the necessary records for compliance.
Risk Assessment: Auriga Accounting can assess the risks associated with using the new features and develop strategies to mitigate these risks effectively, reducing potential compliance issues.
