GST Act is going to be implemented from the first day of July, which is why the owners of various businesses and enterprises across India are confused that how will the GST tax calculation be done accurately. The GST calculations, in the beginning, are going to be quite complex and so even the minor errors might impact the businesses with huge financial losses. It is, therefore, important to rely on an automated GST calculator, software or a tool that simplifies the task and assures about the accuracy. A highly sophisticated, scientific and advance GST calculator will not only help to calculate the tax liabilities with utmost precision but also let you know the current GST rates for different goods and services. This way, one can easily determine the net profit and impact of GST on their businesses. In order to provide the authentic calculations and GST rates, calculator or a software must have the following features. Let’s take a look.
1. High Accuracy
In the current system, most of the tax-related calculations are performed by accounting software or with the help of chartered accountants. However, after the implementation of GST, the entire taxation system is going to be changed and so will be the GST-related calculations. In order to know the GST tax rate, business’s profit, and losses, one needs to have a calculator or a tool that performs all the necessary calculations with high-accuracy. A minor error may impact the business with huge financial losses. Therefore, a GST calculator must have the ability to calculate the tax liabilities such as SGST, CGST, IGST, and UTGST according to the rates provided under the GST Law.
2. Quick Updation
Unlike any other calculator that is used to subtract, add and multiplication of figures, the GST calculator must have an ability of quick updation according to the changes taking place under the GST law, rules and regulations. It should also be able to adapt the new modifications in tax rates of various products, goods and services. If a GST calculator has such features, it will help you in the calculation related to GST rates and tax liabilities more precisely.
3. Threshold Exemption Management
One of the most important features that any advance GST calculator must-have is the calculation of threshold exemption. GST threshold value is the value exceeding which GST tax will be applicable on any business or enterprise dealing with the supply of goods and services. According to the GST Act, businesses whose annual turnover is more than twenty lakhs need to pay the GST tax whereas those businesses whose turnover is less than the threshold value need not register under the GST taxation. Instead, they can get registered under the composition scheme. It is, therefore, important that a GST calculator is capable of managing and calculating the threshold value.
4. Multi-Platform Adaptability
Every business needs to be compliant after the implementation of GST. The invoice matching concept is introduced so that every taxable individual is in the value chain for the GST tax fining and returns. This can highly affect the compliance rating of businesses dealing with any sort of supply related to goods and services. It is, therefore, important that any GST-related calculations can be done using a multiple-platform interface such as tablets, mobile phones, or desktop to simplify the calculations process and can be performed whenever required as per the availability of the resources.
Few Parting Words
After the implementation of GST Act, the calculator would be one of the necessary tools that will be required by every business. In fact, many taxpayers have already started to make use of these highly efficient GST calculators. Besides the features that are mentioned above, there must be some additional features such as it copies the results on to the clipboard when using a desktop, can share the output via WhatsApp or SMS, and can take a snapshot. These features will make the calculation process much easier, effective and sharable. They not only make the GST tax calculation much efficient but also transferable from one person to another. Therefore, it’s advisable to choose the calculator which supports multiple user interfaces and comprise of all the above-mentioned features including the GST rates.