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What is the Need for GST Analysis in Business?

GST is one of the most significant tax reforms in India since independence and successfully implemented from 1st July 2017. Before GST, different taxes in different states added only complications. Thus, with centralized registration, GST has eased the process of starting a business, and with GST easing this process, there can be a rise in the SME sector. Earlier all SMEs had multiple taxation systems, and GST has reduced the tax burden of small dealers and traders. 

How can GST analysis help in the growth of a business?  

The technologically advanced solutions will enable the business owners to track every transaction and keep all the records organized and up-to-date. This will help them to reduce tax liability and save on time and cost. While the GST is certainly a complex topic, there are ways of making this complexity seem simple.

The trick is to provide your business with a smart analysis solution that will enable you to quickly understand all major and minor challenges in GST compliance by keeping tabs on your business’s transactions. With the right analysis and reporting tools, businesses can make sense of their complex tax data and ensure compliance with the GST.   

Before delving deeper, let us all about GST, GSTIN and its uses, GST’s impact on business, and how service providers offering GST analysis solutions can play a pivotal role in the growth and development of a business.  

An insight into GST-IN analysis   

GST effects on various industries are different. The Government of India made the taxation system in the country in simple steps. The aim of GST is to create a single taxation system however, the impact of GST will vary for industries like manufacturing, distribution, retailer, service providers, and they are different from one another. GST boosts performance in India’s manufacturing sector. With the introduction of GST, the effect of indirect taxes is causing a growth in the planning process of various businesses.     

Before GST came into force, all dealers, manufacturers, businessmen, or any taxpayer registered under the state VAT law were all given TIN numbers by respective state tax authorities. GSTIN (Goods & Services Tax Identification Number) is a 15-digit identification number, which is a PAN-based number where the first two characters are state code or Union Territory code of the state. Obtaining GST-IN and registering GST is free of cost.  

GSTIN is used for –   

  1. The process of availing loan is made easier with the help of the GST number   
  2. Refunds can be claimed with GSTIN   
  3. The verification process is easy with GSTIN   

Also, Read – Financial technology companies

Know about GST return filing   

GST Return Filing is a part of maintaining financial accounts per year. One can seek the help of a chartered accountant for GST Return Filing and related fields, which include financial GST Return Filing and managing General GST Return Filing. The GST Return Filing has details of income that a taxpayer files with the tax administrative authorities. While filing GST online on the official portal, the registered dealer requires some of the details like-   

  • Total sales   
  • Total purchases 
  • Output GST    
  • ITC or Input Tax Credit    

GST returns should have all the details of income, sales, expense, or purchase which every taxpayer needs to file with the tax administration authorities. The multi-GSTIN analysis involves processing, consolidation, and curation of GST data.

Multi-GSTIN involves Working capital movement, funds sources utilization and borrowings, identifying related parties and supplies, auto consolidation of multiple GST-INs, zero data modification, single triggering to fetch data. This data gives insights into business transactions. It provides details of cash flow, turnover of the entity, and other key insights.   

All taxpayers have to file GST returns every year. Now it can be filed online through software by GSTN (Good & Services Tax Network). Tax payer can then use the GST portal, and based on state code and PAN number, a new 15-digit number will be issued. All invoice documents need to be uploaded, and a reference number will be issued.  

How can an intelligent GST analysis solution help a business?   

GST has added transparency into the system by making it easy to depict the financial health of an individual. Making the complex picture simpler, Perfios evaluates the financial data of the borrowers, enabling lenders to make a wise decision.

Unique solutions are offered with the raw data of the applicant (company) from the GST portal or from GSTR forms. An analysis of the company is done on the basis of their GST-R filings on a monthly basis. Using this data, companies can assess the recent financial condition of their business. Get insights into their sales and purchase invoices.    

Some new features were added, like multi-GSTIN support. Such financial service providers also have sync-selected transactions to keep a record of the customer of the company’s actions.

Also, Read – How To Manage Your Unplanned Financial Expenses with an Affordable Personal Loan!