ClearTax introduces new features in GST software

Sangeetha Chengappa Bengaluru | Updated on January 08, 2018

Software helps businesses verify and match sales reported by vendors for inflow of tax credit and refunds

With the new GST regime now effective across the country, ClearTax, income-tax returns e-filing and enterprise compliance service provider, has introduced intelligent features in its software to help businesses ensure a seamless flow of credit without making a dent in their working capital reserve.

The software now includes registered dealers using the GSTR-2A feature on the ClearTax GST Software who can verify whether their vendors have filed their GSTR-1 accurately, and, if not, urge them to do so before the October 10 deadline.

GSTR-1 is a return of outputs of a business, whereas GSTR-2 is a return of inputs of a business. To help with issues concerning reconciliation, the government has introduced GSTR-2A, a form that gets auto-populated by information from GSTR-1 of all vendors associated with a particular trading concern.

GSTR-2A helps businesses verify and match the sales reported by their vendors as purchases so that input tax credit can be claimed.

CAs and tax professionals can also identify any reconciliation mismatch much ahead of the deadline through these features on the software.

Unavailability or delay in claiming input tax credit means locking up of funds, making it difficult for the business to pay outstanding dues.

ClearTax GST software will help businesses prevent this scenario by making sure returns are filed on time and accurately by vendors, so that the flow of working capital is not hindered. Taxes paid to purchase these inputs are available as credit while paying taxes on output.

As per the GST law, a sale made by a business is recorded as a purchase for another business.

Tax credit on inputs can be claimed where your purchases in GSTR-2 reflect in your vendor’s GSTR-1.

Archit Gupta, CEO, ClearTax, commented , “Ensuring vendors file their returns timely is critical to avoid loss of input tax credit. Our software will help prevent this situation so businesses don't face delays and funds are not locked up. This feature of ClearTax GST software is the best way a business can stay on top of claiming credit and paying taxes without worrying about cash flows.”

By using the ClearTax GST software, a business can download the GSTR-2A data in MS Excel format and verify the vendor’s sales details. This will make GSTR-2 filing a breeze for CAs, tax professionals and businesses.

Filing all GST returns on ClearTax GST software is simplified with a three-step process, after which all data can be submitted to GSTN for three returns a month – GSTR-1, 2 and 3.

Published on October 01, 2017

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