Imagine an entity operating on large scale in a metropolitan city, and issuing 100s of invoices to its customers, MANUALLY. Yeah, you heart it right! It seems so unpractical to even imagine of any such scenario but many of the business entities are still doing their operations manually even after 6 months of GST implementation.

While some of them are issuing bills manually, others are doing their whole accounting procedures on a manual basis. Some of the others, who are issuing bills or doing their accounting electronically, are using a software without GST compliance features.

GST compliance software isn’t a discretion any more. Rather it has become need of the hour to use GST compliance software, which will not only saves the time, but rather focuses on error prone and automation for complying with GST provisions easily, quickly and securely.

Tax consultants, such as GST practitioners and Chartered Accountants understand the need of GST compliance software much more than their clients. Receiving bills in hard copies, and then entering them online before even preparing and filing the GST returns is a tedious task, and requires huge time and efforts. Hence it is important that tax consultants recommend the clients to use GST compliance software which will be beneficial – both for the client as well as tax consultant.

Challenges while using manual software

Retrieval of data according to needs of GSTR-1

All B2B transactions, i.e. goods or services supplied by a registered taxpayer to another registered taxpayer, have to be reported invoice-wise in GSTR-1.

Details to be given in GSTR-1 in respect of each such invoice are –

  1. Recipient GSTIN
  2. Recipient Name,
  3. Invoice Number
  4. Invoice Date
  5. Place of Supply
  6. Total invoice value

If a business still continues to bill the customers manually, it will be very difficult to retrieve the details from each invoice, if there are plenty of invoices issued by the business.

GST compliance software will encounter this issue, since on a single click, data will be extracted from everywhere and GSTR-1 will be automatically filled.

Recording data online to file GST return

Further, even if data is retrieved by going through all the invoices, next big step would be to record all the data online, according to the needs of GST portal. Imagine the hardships for tax consultants to maintain accuracy in such scenarios. Not only this process would consume a lot of time, also there would always be a high risk of duplication, and mistake while recording details.

GST compliance software will automate the process, thereby eliminating any risk of duplication of incorrect data filing.

Correction of Data requires taxpayer’s approval

At the time of entering data in electronic mode, or while reviewing the entered data, tax consultant might require taxpayer’s approval to edit, add or delete any detail. For giving approval, taxpayer will have to go through the bill, and then communicate to taxpayer, which would again consume time and effort.

If the business uses GST compliance software, all the data will be available online, and taxpayer can easily match the data as per GST return against the bills he has issued to customers (B2B and B2C).

Revision of returns not allowed

To check accuracy of data entered online by tax consultant would be a tedious task. Since GST returns cannot be revised, data once entered and filed in GST return would be considered final. This may be a huge risk for the business if data as per books doesn’t match with data filed in GST return.

GST compliance software enables the taxpayer to preview the return before it is filed. Hence, he can cross examine the data before it is filed.

Some features of a GST compliance software which will make the operations fast, quick and accurate

Same data filed in GSTR-1 and GSTR-3B

It is very important that data filed as per GSTR-1 matches with total figures filed in GSTR-3B. GST compliance software will make it very easy to reconcile the data and in case any discrepancy is found, it will issue the alert so that discrepancies can be corrected timely.

Reconciliation of invoices and ITC

GST compliance software can match your purchase invoices against sales invoices uploaded by the suppliers. Matching of ITC is utmost important and GST compliance software can quickly handle mismatches and ensure that they are timely corrected.

Mobile app access

Taxpayers can view all the details right from their mobile. Return filing success/ failure, filing reminders etc. can be tracked on a single touch.

Multiple users or state management

Using GST compliance software can help in centralization since multiple GSTIN IDs can be matched to a single user account. Multiple state filing or multiple business units can be handled through a single dashboard.

Hence, it is high time that businesses understand that they should use GST compliance software. Through it, they can link their existing ERP system or billing system and manage their GST on few clicks.

Avalara is an experienced application service provider (ASP) and partner of authorized GST Suvidha Providers (GSPs). To understand how our cloud-based application Avalara TrustFile GST can help you with GST compliance automation, contact us through

Author Bio

Qualification: Graduate
Company: Content Flavour
Location: Jaipur, Rajasthan, IN
Member Since: 31 Oct 2017 | Total Posts: 18
Creating articles on GST, Income Tax, Business Compliances and other related topics for top fintech startups as well as companies in India. View Full Profile

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June 2021