
Goods and Services Tax (GST) is applicable to goods and services that are exchanged for domestic consumption in India. The tax is levied on customers who pay it to businesses, which is then remitted to the government based on predetermined tax rates.
Indian businesses come under the purview of GST, and they must adhere to the rules under the law. A cursory reading of the law includes accounting for GST, filing GST returns, and maintaining proper records.
While introduced to ease the taxation system in India, the multiple tax slabs, refund issues, lack of proper anti-profiteering mechanisms, and technical glitches make accounting difficult. Hence, you need a good accounting software compatible with everything related to GST.
Accounting software helps businesses manage, analyse, maintain, and report their financial transactions, specific to their operations. Manually calculating everything related to GST accounting is a cumbersome task, but when you use GST accounting software, things get much easier.
From accelerating critical financial processes to closing books, filing GST returns, etc., the right accounting software will streamline account management, update, and all the processes. Here are the key features you must look for in the software for GST accounting.
The software has built-in support for varying GST rates based on different types of goods and services. It also includes Harmonised System of Nomenclature (HSN) codes or the Service Accounting Codes (SAC). The ideal software for GST accounting must automatically differentiate between standard, reduced, and exempt rates.
Since all the GST rates are preseeded into the software, it automatically applies them during calculation. Not only does this speed up time-consuming processes, but it also ensures every account is accurate, and you won’t have to manually calculate the GST returns.
Choose the software that prepopulates GST returns data based on recorded transactions, effectively reducing manual errors. It’s mandatory for an accounting software with GST integrations to generate accurate GSTR-1, GSTR-2, and GSTR-3B forms, among others.
Moreover, look for additional features like filing reminders, alerts, and notifications based on predefined deadlines. Lastly, look for error validation within the software, which will check the returns before they are filed and flag inconsistencies.
Even in an accounting software, look for functionalities like reconcile ITC claims using the GSTR-2A form and eligibility checks according to the updated rules. Such features can ensure you are filing accurate claims and prevent errors. Moreover, for businesses dealing in exempt and taxable commodities, the software must help calculate ITC on a pro-rata basis.
GST rules tend to change across states, and you need software that makes complying with state-wise rules easier. Use software that can help create reports and file multiple GST registrations. Moreover, it should help check, track, and segregate transactions on a state-by-state basis.
Since GST-based invoicing is different from other forms, the software you use should comply with GST standards. This includes having space for GSTIN of buyer and seller, HSN/SAC codes, tax rates, and breakdown of CGST, SGST, and IGST. Similarly, for businesses dealing with exports and imports, it must help generate invoices with zero-tax rate support and LUT without IGST.
Finding reporting and analytics features in an accounting software with GST is rare, but you will get it with Mocha. Reporting and analytics are required to understand tax liability, payment history, transaction-wise GST breakdown, and generate audit reports.
In addition to GST-specific features, an ideal accounting software must also have the following features;
A GST-compliant accounting software should have all the features you need to streamline GST management. But that’s not all. Go for a solution that helps automate repetitive tasks and generate real-time reports while ensuring compliance.
An accounting software with GST compatibility is a great option for small businesses, freelancers, and startups. Given the transaction volume of large organisations, a free software cannot fulfil their needs due to preset limitations.
However, you will get access to basic and some advanced features, including automation, error identification, and collaboration with third-party software, among others.
Mocha is one of the best accounting software programs you must check out if you need access to basic and advanced accounting features without spending even a single penny. Here’s all you need to know about Mocha accounting software.
Mocha is designed to help businesses streamline their accounting work using advanced features and working with an intuitive interface. Enabled with automation features, Mocha Accounting enables small businesses and startups to set up their accounts with ease and without any professional assistance, which saves you money and a lot of time.
If that’s not all, Mocha Accounting also lets you customise the dashboard, Chart of Accounts, Transaction Categories, and much more to ensure the software works according to your requirements. Here are GST-friendly features you’ll find in Mocha Accounting’s accounting software.
Mocha Accounting comes jam-packed with all the features and functions you will need to maintain GST accounts, filing, and reports.
GST is integral to the Indian business economy, and every accounting solution built for Indian businesses must have the features to manage everything related to GST. We have already learned that Mocha has all the necessary and advanced features you need to streamline your GST accounting and management. Well, here are a few other software programs you can check out for GST management.
Mocha Accounting offers access to advanced accounting tools with complete GST compliance. It helps businesses generate GST-compliant invoices, manage sales and purchase orders, track expenses with GST breakdowns, and automate reporting. With features like banking integration, real-time reporting, and cloud access, Mocha ensures effortless and accurate financial management for startups and SMEs.
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Zoho Books offers a free version of its software to businesses earning less than INR 50,000. Businesses can file GST returns directly through the software and also use features like GST-based invoicing, inventory management, expense tracking, banking reconciliation, and GST report generation. While all these features are available the fact that Zoho Books is available for free only for a few businesses is challenging.
Vyapar is specifically built for Indian businesses that need compliance with GST and all the related functionalities. From invoicing to sales, purchase, expenses, billing, banking, and reporting, every feature has advanced-level GST support. Given its features, Vyapar is more suited for retail and small businesses.
A popular name in the accounting industry, QuickBooks India has upgraded to include GST-related functionality, featuring automated GST invoicing, tax calculation, and GST returns filing. You will also get robust taxation features that will completely overhaul your invoicing, sales & purchase orders, inventory, and banking management. However, QuickBooks is now Intuit QuickBooks.
Odoo’s USP is its customisation capabilities. Even its free version gives you several customisation options while ensuring you stay GST-compliant. You will find seamless management capabilities of invoicing, sales, purchase, inventory, banking, and reporting capabilities. Since it’s a customizable solution, you can always start with the free version, which has limited functionality and switch to paid plans as the business grows.
|
Software |
Free Trial |
Cloud Deployment |
Ideal for Business Type |
Customer Support |
GST Compliance |
| Mocha Accounting | Yes, 30 days free trial. | Yes | Small and Medium Businesses and Startups | Email, chat support | Basic GST invoicing, reporting, and compliance. |
| Odoo | Yes, 15 days | Yes | Medium to large businesses, customizable ERP | Email, live chat, community forum | Customizable GST modules |
| Vyapar | Yes, but for 30 days. | Yes (desktop & mobile) | Small businesses, retail shops | Email, phone, chat | Full GST compliance, including invoicing, reporting, and returns |
| QuickBooks | Yes, but for 30 days | Yes | Small to medium businesses | Email, phone, live chat, community forum | Full GST compliance, automated invoicing, tax calculation, and filing |
| Zoho Books | Yes, but 14 days | Yes | Small businesses, freelancers | Email, chat, phone, self-service portal | GST compliance with invoicing, filing, and reporting |
As you can see from the table above, Mocha Accounting is indeed one of the best accounting software with GST-friendly features. Here are a few other things you should know about Mocha Accounting;
Access to accounting software with GST is not just a convenience for small businesses. Instead, it’s an essential tool for business growth. Good software streamlines compliance, automates critical processes, and offers real-time insights. All of these contribute to smooth cash flow management and ensure your accounts are scalable as needed. Additionally, the automation features built into Mocha Accounting software free up your resources, giving you more flexibility and time to think about strategic growth.
Invest in the right solution from day one to see effective results in the future. Start using Mocha Accounting today and start your 30-day free trial, or you can schedule a demo with a Mocha expert.