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iSPIRT – Indian Software Product Industry Round Table is a non-profit think tank formed by leading practitioners of the industry
to assist in the cause of building a healthy, globally-competitive and sustainable industry. Visit www.ispirt.in for more details.
Goods & Service TaxIntroduction
● 7M Businesses (VAT + ST Base)● ~5B Invoices/Month in the system● 37 returns per year instead of 2!● GST rates are released - range between 5% and 28%.
GST Basics
Up to Rs. 20 lakhs
Up to Rs. 50 lakhs
Anything above
• Registration is not required• No GST needs to be charged
• Can avail Composition scheme• 1% and 2.5% for traders / service
providers and manufacturers respectively
• Restrictions on who can register
Technology Shift: Pre & Post GSTN
Cloud/Mobile based
GSTn is fully API based which opens up innovation & flexibility in user experience
Full automation due to GET APIs from GST and systems able to auto reconcile (less manual intervention)
Banking, Accounting & Tax filing can be bundled
Mostly Desktop based
Tax filing is cumbersome as it is file & screen-scraping based
Manual re-entry & adjustments in accounting, tax filing
Silo’ed systems
GSTN Technology Ecosystem
Tax Payer Application
(Local ERP, Standalone Custom Application, Excel
based System etc.)
GSP Portal(Providing Excel , csv etc.
based invoice upload/GSTR2
download/GSTR1 Summary)
GST Server
GSP GST
Server MPLS
SMB
GST APIs - 3 broad types
Authentication Returns Ledgers
http://developer.gstsystem.co.in/apiportal/
GST Returns - 3 every month
GSTR 1 - Sales Information
GSTR 2 - Purchase
Information
GSTR 3 - Consolidated information (1&2)
GSTR 1 Flow
SMB Selects a GST Software Application
Authentication - One time or OTP
Export Sales Register [With Invoice Level Details]
Generate GSTR1 in JSON
Prepare Return & View Summary [GST portal or Application]
Receive Acknowledgement
Digitally Sign & Submit Return
Every SMB gets a GST portal username & password. He can use this to authorize an application to
fetch his details on his behalf
He can manually upload a CSV from an external source or his application can perform this
function on his behalf
CSV of sales invoices have to be converted into a JSON as per
format defined by GSTN
GST FilingProcessTimeline
SMB (Tax Payer) GSTn
By 10th - GSTR1Save / Upload Sales Invoices
File Form GSTR1 Return
By 15th - GSTR2
Get purchases through GSTR2A
Reconcile Purchase register
Add / Amend Purchase Details
File Form GSTR2 Return
By 17th - GSTR2 Accept / Reject buyer changes
Get buyer changes through GSTR1A
SMB can modify uploaded invoices by counter parties or add additional purchases not uploaded
Compare purchase details received with what’s uploaded by counter parties
By using better collaboration, SMBs can avoid these discrepancies
Generate / Get GSTR3 details
File Form GSTR3 Return
Make GST Tax PaymentBy 20th - GSTR3
Life of an SMB: Pre & Post GSTN
All my Invoices needs to be GST compliant & uploaded to GST network every month by 10th of the successive month
Follow-up for payment from my client is more painful (If I don’t upload my client will not pay as they can’t claim credit)
Need to reconcile purchases as mismatches will lead to loss of tax credit and hence it is critical to track purchases too
Sending the transactions offline (excel) may not be viable as the returns are broken into 3 stages with tighter deadline & penalty
My invoices and expenses are tracked in my system of record (typically excel) and later given to my CA
Follow-up for payment from my client is painful (I can send invoice through any medium and claim input credit later)
Don’t have time to record my vendor bills so don’t know my total expenses (my CA will do that)
Tax payment & filing is a backend process. Multiple sources of data is submitted to the CA who prepares returns
GSTN Compliant Invoice - Sample
GSTIN of the supplier is required
Place of Supply is critical to determine tax rates applicable (CGST/SCGST) or IGST
Every item (Good or Service) need to have either CGST/SGST or IGST
Every item needs to have a HSN (Good) or SAC (Service) assigned by GST
Data Driven Decision Making for SMB Credit
Others
BBPS
Digital Payments
ETC
GSTN
Machine Learning & Algorithms
Smartphone
SMBs
CONSENT
Thank You
