INTRODUCTION:

Goods and Services Tax is a huge initiative that streamlines the bigger indirect tax structure by endorsing and upgrading the monetary progress of a nation. The software and application are developed for making the tax paying experience smooth for small scale businesses. India adapted a dual GST model wherein transactions within a single state are levies with Central Goods and Service Tax (CGST) and State Goods and Service Tax (SGST) and inter-state transactions are levied with IGST. Introduction of Goods and Services Tax (GST) had various positive and negative impacts on various sectors like Manufacturers, Distributors and Retailers, Logistics, E-Commerce, Textile industry, Agriculture, Automobiles, etc. The two main types of Goods and Services Tax (GST) invoicing for small and medium scale businesses is B2B (Manufacturer and Whole seller) and B2C (Retailers)². B2B includes the invoices which the manufacturer sends to the whole seller on purchase of goods by the whole seller and B2C includes the invoices which the whole seller maintains selling the goods to the retailers. The whole process of tax filing with GST and network comes under GSTN (Goods and Services Tax Network). Management of the whole IT system of GST portal is done by GSTN, and government tracks every financial transaction using this portal, and services such as registration, filing and maintaining all the tax details is provided to the tax.

Tax that is not directly imposed on the supply of good and services is called as Goods and Services Tax (GST). Sectors such as Petroleum, Liquor and Gas are not part of this tax process. The imposition of this tax is at the end of the year, so it is a destination-based tax and not like previous taxes. It is imposed and reimbursed to all manufacturing parties as it is a multi-staged tax, although not on the final consumer. In India, the administration of this tax is done by both Central and State Governments which is termed as dual GST model.

LITERATURE REVIEW:

P Jayalakshmi (2018) specified all the restrictions during the introduction of GST faced by the retailers. The latest GST standards are being followed by the retailers, they will be acquainted with a new arrangement of documenting their annual Tax return with new section courses of action and this exertion must be finished online utilizing some product for generating bill and afterward transferring it to the GST portal. Along these lines, all the issues looked by the little retailers in the zone of Visakhapatnam and the impact on their business are talked about in this paper¹.

R Kanda et al. (2018), published a paper which concentrated on the influence of GST on traders and suppliers from the area of lower Himachal Pradesh including districts such as Hamirpur, Uma, Dharamshala and Bilaspur. To compute the impact of GST some indicators were used such as Alertness about GST, GST’s Financial Literacy Level, judgement regarding efficacy of the Taxation system, smoothness provided in assisting in shaving processes by the respective authorities, apparent intricacy of the lawful edifice of this taxation system. The conclusions clearly suggested that small businessmen and retailers in the area suffered due to the introduction of new Taxation system as they did not have a clear idea and proper knowledge about the same³.

M Sharma et al (2014) published a paper under the title “A Study on Goods and Services Tax in India” where they discussed about the present status about GST in 2014 and also explained about the various benefits those would come along with GST implementation in India. They also discussed about the current scenario with GST in the country back then and various Cons of GST. They concluded their review with the ending note that after GST implementation there will be reduction of cascading effect problems, evasion of tax and distortion to the maximum⁶.

Girish Garg (2014) explained in his article titled “Basic Concepts and features of Goods and Service Tax in India” that what would be the impact on the Tax scenario in India after the implementation of GST. He analysed different types of problems, Pros and Cons, challenges, and the objectives of the implementation of GST in India. The research winded up explaining the GST impact on different variety of industries like FMCG, food, housing, and construction and on the industries providing services financially⁴.

PROPOSED SYSTEM:

A. Problem Statement:

Manual systems are being used for accounting and billing by most of the small and medium scale businessman today which has a lot of shortcomings like manual bookkeeping takes a lot of time. To search for the requested information by the executives, accountants may need to go through multiple documents. Organizations might not be able to keep workers from exploring delicate information in paper records and journals. Additionally, the documents that are duplicated and put away on a PC may likewise be less secure. This may permit the workers to abuse monetary data through misrepresentation or misappropriation.

When forms are filled manually for accounting it is obvious that there will be mistakes. Data is being entered wrongly which is a blunder into inaccurate records, translating figures, and recording data in reverse. Since these lapses are likewise in current bookkeeping frameworks, manual structures have no inside balanced governance. Bookkeepers investigating on mistakes frequently go through various hours to find and right these sections. Multiple accountants working in several manual accounting ledgers can worsen these problems.

B. Objectives:

The system is aimed at generating invoices and internet connectivity is not required for this. It will generate all your invoices of a month and all the GST report of that month will be stored in an excel sheet. GST calculation of the whole month also becomes just one click away as all the data of that month is stored in a single excel sheet.

C. System Design and its modules:

The proposed system is designed once and the updating can be done several times, so for the maintenance of the software and its usage there is less burden as specific guidelines need to be followed to do it. It can add up to a maximum of two users and perform functions like generating an invoice, adding seller data, analyzing GST, and arranging data (Accounting). When the user creates an invoice for a particular month, an excel sheet of the respective month is automatically created and all the details in the invoices of that month will get stored in the excel sheet of that month only. Then, after all the details of the invoices of a month are stored in the excel sheet, GST of that month is calculated.

The modules for the System can be given as below:

Creating an Invoice which takes all the necessary details required for an invoice as input and an invoice is generated in a predefined PDF structure.

Managing Seller Data takes all the seller details and calculates Input Tax Credit. The different formats are used to save the details corresponding to GSTR2 format and distinct excel sheet formats are used to store those files which is termed as ‘year’ and ‘months’.

Calculating GST, this calculates GST for a period of one month and generates a .csv file. This information can then be uploaded to GST offline tool which produces a .json file which in turn is shared on GST portal.

Arrange Data recapitulates over a customer catalog to examine files which are used during the handling of user data.

Figure 1 is the flow chart to the architecture for the proposed system with different modules where ‘User’ is the client using the ‘Software’ created with platform Openpyxl Python. Moving to the next layer, a new user can be created, customer to the client. This user can be deleted, and details can be edited at any point of time. For the further calculations ‘User1’ has been created for whom bill creation. The user can create the bill for the registered client, can insert and arrange seller’s data and calculate GST for complete month.

Figure 1. Proposed Architecture

CONCLUSION:

In this plan, an effective method has been proposed for Invoicing and Billing of GST for purchase and sales. The authors have developed a system which Creates Invoices, Calculates GST and Arranges Data and excel sheets of the reports. Doing manual calculation and maintaining reports is a very difficult task which was a very common practice before the introduction of GST, so this system is designed so that manual work is reduces and it will also save time and produce data reports efficiently. It can be used both as software and a mobile application, the difference is just that one cannot maintain records in the application; it is used only for Invoice generation.

REFERENCES:

1. Jayalaxmi, D.P. (2018), "GST- Its impact on Consumer Goods Retailers", International Journal of Research in Education and Psychology, vol. 4, no. 2, pp. 6.

2. Koch, B. (2017), "E-invoicing/E-billing," Billentis, Switzerland.

3. Kanda, R., Handa, H., Kumar, V. and Bhalla, G.S. (2018), "Impact of GST on the Working of Rural India", International Journal of Management , vol. 6, no. 1, pp. 26.

4. Garg, G. (2014), “Basic Concepts and Features of Good and Service Tax in India”, International Journal of Scientific Research and Management, vol. 2, no. 2. Retrieved from https://www.ijsrm.in/index.php/ijsrm/article/view/66.

5. Manyal, B. and Nagpal, A. (2014), “GST on e-commerce in retail sector: BOON or BANE”, XVII Annual International Seminar Proceedings, pp. 1058-1067.

6. Sharma, M. and Neha (2014), “A study on Goods and Services Tax in India”, The International Journal’s Research Journal of Social Science and Management, vol. 3, no. 10

7. Divyashree, C. and Ajay, R. (2021), “A Study on Tax Audit under GST (Goods and Services Tax)”, Asian Journal of Management, vol. 12, no. 2.

8. Jagadish, G. and Reshma, K J. (2020), “The Impact of Goods and Services Tax (GST) on Fast Moving Consumer Goods (FMCG) Consumers with respect of Personal care Products”, Asian Journal of Management, vol. 11, no. 1, pp. 1-4.

9. Sowjanya, A.M. and Rakesh, C. (2020), “Is Indian Goods and Services Tax (GST) Impacted on Gold Sector?”, Asian Journal of Management, vol. 11, no. 1, pp. 87-91.

10. Yadav, R.S. (2017), “Impact of GST on Growth and Development of India Economy”, International Journal Advances in Social Sciences, vol. 5, no. 3, pp. 180-182.

11. Alie, A.H., Iqbal, J., Ahmed, S. and Bhat, A.A. (2019), “Impact of GST on FMCG Sector in India”, Research Journal of Humanities and Social Sciences, vol. 10, no. 1, pp. 24-28.

12. Gupta, S. (2015), “Various Tax Authorities and their Powers under the Income Tax Act”, Asian Journal of Management, vol. 6, no. 1, pp. 25-32.

13. Prabhat, R.K. and Kirti, S. (2015), “A Study on Goods and Service Tax in India”, International Journal of Reviews and Research in Social Sciences, vol. 3, no. 4, pp. 153-155.

14. Sharma, P. (2019), “Tax Being just or Unjust: A Study of Taxation as an Institution of Justice”, International Journal of Reviews and Research in Social Sciences, vol. 7, no. 2, pp. 359-364.

15. Kumar, P. and Kumar, D. (2020), “Comprehensive Literature Review on Goods and Services Tax”, Asian Journal of Management, vol. 11, no. 4, pp. 535-538.

16. Neral, A. (2014), “Service Tax Liability on Technical Knowhow: A Contentious Issue”, Research Journal of Humanities and Social Sciences, vol. 5, no. 1, pp. 32-36.

Received on 30.05.2021 Modified on 24.06.2021

Research J. Science and Tech. 2021; 13(3):173-176.

DOI: 10.52711/2349-2988.2021.00027