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GST|Uncategorized
Multiple GST Registrations: Know How to Manage Books of Accounts
Managing a business effectively requires proper bookkeeping. The bookkeeping must adhere to local laws and regulations to comply with taxes and other levies. Cash flow and financial transactions can be monitored, analyzed, and controlled with the help of accounting and bookkeeping.As the GST Act requires, a GST-registered business must keep its accounting for GST journal entries and records for at least six years. For multiple GST registrations, you must maintain them separately for each GSTIN.This article will examine some of the best practices for managing multiple GST registrations in your books of account. Learn how to
Bookkeeping under GST is vital since it determines the amount of money being transacted and the details of each transaction.Maintaining accurate accounting records to generate accurate invoices, bills, and accounting reports is essential.A bookkeeping system can also calculate taxes and government dues.Businesses that fail to keep proper records are more likely to default or file faulty returns, which can lead to penalties and fines.The bookkeeping GST accounting process is also vital to keeping track of payments owed, in addition to keeping track of accounts receivable and payable.These tax components must be recorded on invoices by invoice issuers to pay taxes correctly.
Here are some of the individuals who can perform the maintenance of books of accounts under GST:
Read:What are the Accounts and other Records you should Maintain under GST
The GSTIN of companies with a single location or office has the advantage of being able to manage the company's accounts easily and document GST with the help of that single GSTIN.If there are multiple locations, the company will have to apply for different GST registrations or maintain separate books of accounts for each location.When several establishments exist in a state or union territory, opting for a multi-GSTIN is imperative.When maintaining accounts for multiple GSTINs, filing statements and returns must be prepared separately, which significantly impacts how accounts are managed.With the right tally partner, you keep everything organized.A multi-GST registration can be maintained in two ways so that GSTIN-specific reporting is possible.
For each branch, it is possible to create a separate company account to manage different GSTINs. Therefore, all the details connected to that GSTIN can be extracted from the branch company's records and compiled into reports.It is possible to maintain the company records for the GSTIN as separate companies/books, whether they are maintained centrally or as individual records for the GSTINs.It is convenient to manage accounts decentralized, but most businesses shy away from the method. In addition to problems with generating consolidated financial statements, reports, analyses, and forecasts, the company may not be able to provide accurate information.However, TallyPrime, a bookkeeping software, works a bit differently. Branches can have their books of accounts.During this time, you can get a consolidated view of all the branches, including a consolidated balance sheet and profit and loss statement.
It is not uncommon for companies with multiple locations or more than one GST registration to consolidate their accounts.Consequently, all their locations can be treated as a single branch. By consolidating companies, it is also easier to report, analyze, and manage the accounts from one unified platform.GST returns must be filed GSTN-by-GSTN, so it becomes a bit cumbersome unless invoices can differ by branch.Besides these two approaches, we will discuss the other best accounting practices for GST.
Accounting standards, Indian AS, and Standards of Auditing specify requirements for maintaining books of accounts, which apply to every business person depending on their eligibility.Besides this, the company's act also contains some schedules for handling accounts. During bookkeeping, the accountant should keep these things in mind.
Accounting is a permanent profession, and so is the business world. Entrepreneurs must ensure that transactions are properly recorded, regardless of where or when.A GST return and tax payment must be filed monthly or quarterly for almost all transactions, depending on the situation. You can keep track of all these transactions with the help of an effective billing and invoice software, learn how you find the one that meets your business's needs with our guide featuring tips for finding the best invoice and billing software.
Accounting and tax self-assessment are required under GST. To determine the taxpayer's tax liability, one must self-assess their taxes.
Depending on the number of GST registration numbers a company has to perform maintenance of accounting records under gst. It should be done either individually or consolidated. A company's choice of method is based on its own needs, and there is no right or wrong approach.There should be alignment between the company's business operations and its bookkeeping.In the case of compartmentalized management systems with no central management of the branches, an individual management approach is better aligned with a decentralized approach.An organization with a consolidated system would be more effective if all branches were managed with most of the decisions made and the accounting reviewed from the central location.Choosing the best method depends on a company's internal requirements. No matter which method you pick, MarkIT can assist you in finding the right software for all your accounting needs.
