GST (Goods and Services Tax) is going to have huge impact on the way business is conducted across India. A lot is being said and printed in newspapers and tv channels about the GST which is scheduled to be implemented from 1st July 2017 across India. Let’s quickly clear up some doubts about GST.
What is GST?
GST (Goods and Service Tax) is the single unified tax levied and charged on the taxable supply of goods and services created in the course or furtherance of business in India by a taxable person. GST is set to simplify the taxation process for both retailers/service providers and government. All the different and varied taxes levied by State governments like value added tax (VAT), purchase tax, sales tax, entertainment tax etc. along with central government imposed duty tax, import export excise duty etc. will get substituted by one single comprehensive Goods and Service Tax (GST). The streamlined and simplified taxation system will boost Indian economy and attract foreign investments.
Simplified Example of GST
|Particulars||Dealer A||Dealer B||Dealer C|
|Billing(Selling Price including Tax)||1100||2200||3300|
|Input Tax Credit Available||0||100||200|
|Total Tax Paid||100||100||100|
The most crucial aspect of GST is the stages in which it is collected. GST is levied every time the good/service moves into next stage of sale. You are liable to pay tax on your output and entitled to get input tax credit (ITC) on the tax paid on its inputs (therefore a tax on value addition only) and ultimately the final consumer will bear the tax.
In above example Dealer A sold goods worth 1000 Rs and paid 10% GST to Dealer B. Dealer B sold the same goods for 2200 Rs and paid 200 Rs tax. The Dealer B, now has 100 Rs in Input Tax Credit, which he can claim back. When dealer C sold the same goods at 3300 RS, he paid 300 Rs in tax and got returnable Input Tax Credit of 200 Rs.
It is therefore important to issue correct and proper tax invoice to customers with clear distinction between price of goods/services and amount of GST charged. Your business must ensure that 100% transactions are recorded and data saved in the system. The transaction receipts acts as the primary evidence and enable you to claim Input Tax Credit claim.
Pegasus developed the technology solutions to empower business become GST compliance. With the efficient POS Solution, any business can now easily issue receipts, capture payment, and record all the transaction data which is required to be a GST compliant business.
The Simple GST enabled POS Solution- Phomello LitePOS
Phomello LitePOS will help you be GST compliant
1) With GST coming into implementation it becomes necessary that your vendors, dealers and partners must be GST compliant as well in order to manage your cash flow and working capital. Phomello LitePOS enables you to create vendor and manufacture groups and associated tax liabilities.
2) In sync with the current GST policies, we have configured Phomello LitePOS to work with any form of business, from small local restaurant to café’s, saloons and spa, from the local taxi service to an international travel agency, no matter what your business is, with Phomello LitePOS app you can have smart POS experience at your fingertips to simplify your day to day billing activities.
3) Create bills seamlessly for your customers and process your sales quickly and efficiently. Phomello LitePOS makes it easy to manage your customers and billing them during the rush hours. Phomello LitePOS allows you to quickly and accurately calculate GST levied taxable amount for customers. You can manage all your transactions, inventory and purchase record easily. This will give you more time to concentrate on your other business aspects. You can now serve more customers in less time with Phomello LitePOS billing.
4) The rough paper bills or ‘Kachha’ bill will be of no use. All business will need to provide proper invoice. LitePOS app is the easiest and fastest way for any retailer, or service provider to generate the customized print invoice.
5) You can set-up and customize GST Input Tax Credit (ITC) and GST carried forward automatically for every financial transaction and item automatically.
6) Phomello LitePOS Inventory Management System can keep track of items that are taxable and generate GST report with a few clicks.
7) Cloud based Phomello LitePOS to allow you complete uptime with multiple backups.
8) Install and run the mobile friendly application of Phomello LitePOS on major mobile platforms i.e. iOS and android. The secure and mobile friendly app reduces the chances of error and allows you to carry out business from anyplace at anytime.
Get in touch now with our customer care representative for more information