Tag Archives: Hotel Software

How GST Return Filing Works For The Indian Hospitality Industry

Filing tax returns poses as a very vital step towards maintaining the country’s economy and one’s business. That’s why, with new tax regime rolled out in India comes the major responsibility of GST return filing; which is going to be a monthly deal from September 2017.

Previously, we researched and analyzed the impact of GST on the Indian hospitality industry. Adhering to the slab-wise GST structure for the industry, the hoteliers and restaurateurs will need to be discrete and accurate with the sales and purchase data and clear up the disputes and amendments.

Ergo, following our impact analysis, we’ve come up with the action steps you as a hotelier (or a restaurateur) need to take for GST return filing for your hotel (or a restaurant).

Temporary Steps for July and August: GSTR-3B Form Submission

What do hotels and restaurants need to know?

Mandatory for all GST registrants, GSTR-3B is a simple and summarized form introduced by the government to let you file GST returns for the months of July and August*. You’ll need to file GSTR1, GSTR2 and GSTR3 for both these months later in September.

GSTR-3B won’t be applicable from September onward, and you’ll have to file complete GSTR1, GSTR2 and GSTR3 forms for your tax returns.

You won’t need to provide detailed invoice information for GSTR-3B, and rather only the total amount pertaining to each field in the required format of the data.

Filing GSTR-3B is mandatory for hotels and restaurants who fall under the GST regime. If you’ve had no transactions at your property in these two months, you need to file a nil GSTR-3B form.

Subject to the announcements made by the government to not accept GSTR1, GSTR2 and GSTR3 in future for any reasons whatsoever, it’ll be mandatory for you to file GSTR-3B for that month.

What is GSTR1, GSTR2 and GSTR3?

Under the GST law, a normal taxpayer will be required to furnish three returns monthly and one annual return. The three returns monthly are said to be as: GSTR1, GSTR2 and GSTR3.

All three of these returns are mandatory for all GST registrants. You’ll need to file NIL returns if you’ve had no transactions in that month. In addition, Input Tax Credit will have its own mechanism for these returns, such that, CGST credit cannot be set off against SGST liability and vice versa.

What is GSTR1?

GSTR1 will include the outward supplies you made to other registered businesses (B2B) at invoice-level and that to the unregistered businesses at rate-wise level.

The GSTR1 form contains 13 tables in all, according to which you’ll need to submit the sales data of your property of that month. Considering your hotel (and/or restaurant, as the case maybe) type and the sale you made, only some tables will be applicable for you and not all.

Using your GSTR1, the government will populate the GSTR 2A of the recipient (or guest) who purchased from you and your GSTR3. Once GSTR 2A is populated, you’ll be able to accept the sales; which will in turn lead your recipient to file his GSTR 2 in next 5 days. That’s why, you are given 5 days time to amend your GSTR1; post which you won’t be able to make any revisions in the return.

What is GSTR2?

The GSTR2 will contain details of the inward supplies you purchased in the month. The supplier you purchased from will be able to make the amendments to his GSTR 1A after you’ve uploaded your GSTR2 form.

In this form, you’ll need to mention whether you’re eligible for Input Tax Credit or not. If yes, you will have to fill the amount of eligible Input Tax Credit as mentioned in the invoice.

What is GSTR3?

Most of the details in the GSTR3 will be auto-populated from GSTR1 and GSTR2. Only some information, you’ll have to verify and add. If you have not filed your GSTR1 and GSTR2, you won’t be allowed to file your GSTR3.

The process goes like, once your GSTR3 gets generated, you’ll have to pay off the tax credit and then file the GSTR3.

Steps hotels and restaurants need to follow after September

The GST return filing is going to be a 3-step detailed process mainly, followed by the actual payment. This is how its going to work:

What’s the timeline for GST return filing?

Following is how the revised GST returns filing dates look like:

For the Month GSTR-3B GSTR1 GSTR2 GSTR3
July 25th August, 2017 1st-10th October, 2017 31st October, 2017 10th November, 2017
August 20th September, 2017 1st-5th October, 2017 6th-10th October, 2017 10th-15th October, 2017
September onward –NA– 10th of next month 15th of next month 20th of next month

How can hotels and restaurants file their GST returns?

Filing GST returns under the newly introduced GST regime is extremely pivotal as the delay or mismatch or absence of filing the returns will influence the credibility of your business, your compliance rating and prompt returns. There are primarily 4 ways in which you can file your GST returns. Nonetheless, you’ll have to solve the disputes yourself regardless of the method you choose to file your GST returns.

  1. Directly via the Government Portal: The most simple and straightforward method to file your GST returns. Calculate, form and submit your returns manually on the government portal, make amendments and finalize the tax payable.

    Submission Amendments Cost Efforts
    Manually via the portal Manually via the portal NIL 10-12 days to gather data

    Major Hassle: Since you need to gather and submit all the details manually, it can give way to errors and inaccuracy.

  2. Through a Certified GST Practitioner: Considering the current scenario, most of the hoteliers and restaurateurs rely on their GST practitioner to submit their GST returns.

    Submission Amendments Cost Efforts
    GST Practitioner Guided by GST Practitioner ~ INR 5000/month 10-12 days to gather data

    Major Hassles: Coordination with GST practitioner, troubles of gathering the data and eventually having to make amendments and resolve disputes manually under the guidance of the practitioner.

  3. Through a GSP: Either you can directly contact any GSP from the GSTN approved 34 GSPs across the country, or choose a hospitality solutions provider who has a ready integration with GSP with their hotel PMS and restaurant POS systems.

    Submission Amendments Cost Efforts
    GST Software of the GSP GST Software of the GSP Cost of the GSP 10-12 days to gather data

    Major Advantage: You’ll be able to make amendments in the GSP software directly from the interface itself, thus reducing your hassles of downloading the file and manually solving the disputes. Besides, an accounting software may or may not be suitable for hotels and restaurants, but any GSP will be ideal for the industry.

    Note: We have ready integration with JioGST GSP, such that, you’ll be able to submit your GSTR1 data directly from our systems automatically to the GST software. Cost of getting JioGST GSP will be INR 2000/month with JioFi device and unlimited 4G data connection.

  4. Through Tally Accounting Software: Tally is a certified GSP as well a GST-ready accounting software, which will provide you with all of your purchase data accurately in the required format.

    Our GST-compliant hotel and restaurant management systems have a ready integration with Tally. On that account, if you choose this option for filing your tax returns; you’ll have GSTR1 data ready from our software and GSTR2 data ready from Tally.

    In addition, Tally being a GSP; you will be able to directly submit your tax returns to the government through Tally’s GST software.

    Submission Amendments Cost Efforts
    Through Tally Through Tally Cost of Tally software 3-4 days to gather data sales data

    Major Advantage: Since Tally is a GSP and a GST-ready accounting software, you’ll be cutting down a step here to get GSTR2 data and submit your returns through a single means.

Why having a hotel or restaurant software is recommended?

In either of the above cases, you’ll have to collect and submit your sales (outward supplies) and purchase (inward supplies) data from your accountant (if you have). Consequently, while gathering the sales and purchase details; your hotel or a restaurant will need help from both – the practitioner/accountant and the PMS or POS software you use. Automated operations, ready data, and several other benefits of a GST-ready hotel and restaurant software can help you in filing GST returns.

  • Available Data: GST-compliant PMS or restaurant POS systems will provide you with ready GSTR1 data right from the system, thereby in the long run, easing your efforts of filing GSTR1 and even in filing annual returns.
  • Cost-effective: Whether you choose to go via the government portal directly, or hire a practitioner, or any other way, getting a hotel or restaurant software and an accounting software will prove to be considerably cost-effective and time and effort-saving.

    Compared Costs*

    GST Practitioner Cloud PMS On-premise PMS On-premise POS Tally Software
    Cost/Month = ~INR 5000 Cost/Month = ~INR 2000 per 10 rooms One-time license fee = ~INR 46000 One-time license fee = ~INR 23000 One-time license fee = INR 18000 for one user
    Cost/Year = ~INR 60000 Cost/Year = ~INR 24000 Optional AMC Charges = ~INR 6900/year after 1st year Optional AMC Charges = ~INR 3450/year after 1st year License Renewal Fees = INR 3600/year

    *The prices shown here may tend to change as per your requirements.

  • Interface with GSP: The all set interface of the software with a GSP will help you submit your returns automatically from your hotel and restaurant software through the GSP software and to the government.
  • Error-free: Without a software, the returns that you submit may be prone to manual errors and calculation glitches. But with the PMS or POS software’s automated operations, you have minimal worries about accuracy.
  • Manual Amendments: In case of any amendments, you’ll have to manually download the file from the government portal, make the necessary changes and upload the JSON file (mediator file) again, thence making it a tedious process.

Suffice to say that, purchasing a software for your hotel or restaurant will be highly beneficial for your business, and help you in your GST return filing; regardless of the option you choose from above.

We have GST-compliant cloud PMS, on-premise PMS and on-premise restaurant POS system to give you everything you may need in managing your taxes and operations, in addition to offering customized GST reports and GST-compliant invoices.

Handling and filing multiple returns may take a toll on your business sooner or later. Solidify and streamline your operations in this prevalent GST regime with GST-ready hotel software and restaurant management system.

Check out our GST-compliant systems:

eZee Absolute Cloud PMSeZee BurrP! On-premise POSeZee FrontDesk On-premise PMS

Note: All the information given on this page is subject to the notifications passed by the GSTN and Government of India.

eZee gets a new CTO: Transformation on its way

Chief Technology officer. This designation itself expresses that the personage leading this position would be subjected to scientific and technological aspects and governance in an organization.

For a tech-pro company like eZee- living and breathing technology; position of CTO is a vital rank in itself. Hence, choice of a successor would affect company’s technology strategy and become a deciding factor in upcoming growth and development plans. However, with technology transforming everyday, technology officers are expected to develop and implement ingenious strategies. Consequently, aligning these plans with organizational goals is what a technology leader does best.

The Big Announcement

On the morning of 25th March, a general assembly was called at eZee. All eZeeites gathered with a dash of surprise and wonder on their faces. As zero hour approached, Aeijaz Sodawala, CEO of eZee started addressing the audience. And during discourse, in presence of all employees, Vipul Kapoor declared name of his successor, that is, Harshdeep. He announced that Harshdeep Khatri will be Chief technology Officer to lead tech innovations at company.

After 9 years of dynamic leadership on various technology frontiers in eZee, Harshdeep Khatri will now officially rise to mantle of CTO of eZee Technosys: the company constantly innovating with breakthrough technologies.

After effects: Reactions. Cheers. And Congratulations.

eZeeites rolled out red carpet for Harshdeep, new CTO. Fondly Known as HRK in entire eZee, people know him as a master of converting theoretical concepts in reality.

This decision has come on a very right time, when eZee is going for a next level growth and expansion plan. Appointment of new CTO will open up a whole new dimension of growth in terms of technology.

Today hundreds of users are using eZee’s cloud based hospitality solutions. We are growing exponentially in terms of customers, users, partners. In that case, major challenge is to control technology to sustain this massive growth. We are enrolling and serving a mighty number of clients with each passing month. Summarily, we need solid optimized products along with strong and skilled teams of engineers to be in the service of such high volume of live users. As a leader Harshdeep can bring in same vision in entire team and deliver ultimate user experience.

New CTO is totally equipped with all expertise to manage products on a larger scale. Dynamic in nature, Harshdeep always goes that extra mile. People know him as a leader with example. A unique trait in his personality makes him go to the depth of puzzles, execute from various perspectives, and then design a solution that fixes solution forever.

What lies behind co-founder’s discovery of successor

Vipul has certainly got some plausible arguments on why he put seal on HRK’s candidature. “He is very good at implementing different concepts of technology, concepts that are complex in nature.” he said. “Theoretically existing concepts too require research of applicability. And I am confident that Harshdeep contains that grit and can certainly take eZee solutions to the next level.”

Enlightening further with wisdom about CTO and accountability that the designation holds, Vipul shared, “One has to be a team player, one has to run large teams and numerous products. A CTO works with everyone, works on every technology. Therefore, an understanding to gel with everyone is a must. Talking to team, dealing with their daily affairs, requirements, questions, challenges, and career aspirations is a critical and essential skill a leader should possess.”

Aeijaz Sodawala, CEO of eZee welcomed new CTO with ultimate gratitude. He said, “I particularly thank Vipul for bringing about succession plan and eventually select Harshdeep. I welcome him and offer complete cooperation and assistance to him in execution of new ideas and new technologies that make eZee solutions even better. “

Hitesh Patel, co-founder and Managing Director of eZee expressed delight on decision saying, ”Harshdeep has played an exceptional role as a Head of Cloud technologies in eZee through a challenging period of technology transition. His proven track record of successfully leading cloud based products assuredly makes him a perfect candidate to be chosen for position of CTO to lead technology advancements at eZee. I am happy to see him at this position today.”

Throwback: A look into the flashback

To sum up Harshdeep’s journey in eZee, he went from a junior programmer in 2008 to Head of Cloud Technology by 2015 and now Chief technology Officer in 2017.

He is known for massively bringing down scheduled downtime from 2 hours to 2 minutes during the release of new versions of eZee cloud solutions, and he heads towards 0 downtime now.

As an interface programmer, Harshdeep worked with desktop based technology in initial days. Foreseeing potential of cloud platform, eZee went ahead to build a cloud based service segment. Harshdeep took over research and exploration part to evaluate viability of cloud platform in eZee solutions.

He researched on what technology to implement, which infrastructure to use, thenafter leading the team, he kick started production of cloud based hotel PMS eZee Absolute. Going forward, he commenced development of other cloud based products like eZee Reservation booking Engine and eZee Centrix Channel Manager. He closely supervised minutes of software framework, architecture, development, deployment, support, troubleshooting and everything concerning those solutions. As a result, we could build robust solutions and are able to support hundreds of live users using them.

And yes, eZeeites had to say this

The way forward

In a product based company like eZee, position of CTO can prove to be challenging. Not only the technology but hardware, infrastructure, devices, databases, live users, support, teammates and every peripheral that one can imagine emerges as a challenge.

How innovation comes into play? You come across a tech advancement such as Machine Learning, and you think about how can you use it to make your own products better. What new feature or adoption of which new mechanism can make it easier for your users? Well, that’s how a Technology Officer can lead and build a technical masterpiece that facilitates every user.

“Operating in domain specific company operating in hospitality industry, leaders cannot do without sound knowledge of industry. Ultimately, why we develop hospitality solutions? To solve hoteliers’ daily management troubles and help them run their business more effectively. Until and unless you understand their needs, what their guests demand from them, you won’t be able to build a right software. That’s another skill set you require.” says Vipul Kapoor.

One must be strong and ready to build and sustain massive IT infrastructure, millions of live users, and ability to support them, in order to go to the next level.

A technology officer observes and analyses changing industry trends and advancing technology spectrum. In order to maintain numerous product mix altogether and handling such large teams, a CTO must be equipped with dynamics to adopt new technology and fundamentals. To drive growth, one needs to acquire skills; have unique approaches; listen to customers, partners, team players, collect feedback and work accordingly.

eZee and opportunities: A promise kept forever

Here at eZee, we have always offered utmost assurance to high performing talent to be recognized and brought to right place. In upcoming time, we are looking for more talent. We shall observe and create platforms and opportunities for them. Right talents always find matching challenges and responsibilities at eZee.

Best example of rewarded talent is CEO Aeijaz Sodawala himself. Aeijaz went from a support engineer to achieve CEO position eventually. And now, starting from a junior programmer to reaching CTO rank, Harshdeep has certainly raised the bar higher with this remarkable achievement.

Notably, in eZee; every talent gets equal exposure and a chance to grow like never before.

Endnote

Meanwhile, the new CTO sends out an energizing message, “We are ready with all new plans and goals to be best in technology. We are at a place where a single person plays multiple roles. Together we can work on everything what we are and can be best at. Our strength is strong portfolio of various products. Therefore, we will be focusing more on providing flawless user experience and building trust factor.”

To which eZeeites respond, ‘It is big time to stand with new CTO. We shall march forward and thrive together. Whatever we do and whatever we develop, our sole aim would be unanimous – to provide best technology to all hoteliers worldwide.’


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