Introduction to GST (Goods and Services Tax)
Goods and services tax is a key element in the trading business, and no business can operate without it. Each business in a different country has its own set of rules for the application of GST on certain goods. It’s best to stay updated with the latest trends and rules of GST.
GST has been very helpful in streamlining the overall process. It also helps in eliminating different costs. There are different slabs for GST, ranging from 28% to 18% to 12% to 5% to 3%, and some of the products are exempt from paying any GST.
The 28% goods and services tax is applied to all luxurious items such as handbags, imported makeup and skincare, perfumes, automobiles, and spare parts.
18% is generally applied to appliances, washing machines, and electronics. The 12% is applied to food, beverages, and other agricultural products. The 5% is applied to foods like oils and spices, and the 0% is for medicines, educational books, and services.
GST has been miraculously best for the taxation system and a unified business plan. It helps the nation remain on a single page. It also assures no sector is paying the tax twice or any sector is levied to pay less as compared to any other. There is a unified system for everyone to pay the GST.
This whole concept of paying taxes and duties on goods has been a helpful step toward boosting the economy. The cost of the product gets reduced when you simplify the tax system, and this way, GST helps businesses grow and invest. This way, it helps promote job creation; therefore, there will be more revenue, which leads to a healthy and strong economy for the nation.
Understanding sales data in GST
There are some important components to understanding the sales data in detail. These are:
- Invoice level details:
- Taxable value and GST rate:
- Return filing:
The following are the methods used for the analysis of sales data:
- GST software for accounting: With the help of this business software, it is easy to track results, it helps in automating data entry, it makes it easier to generate reports, and it also makes sure about compliance. These operating tools are very helpful in finding errors in the system and also help in finding ways to streamline the filing of GST.
- Dashboards and spreadsheets: For small and medium-sized businesses, it is best to cater to sales data and its management through spreadsheets and dashboards. Different charts, pivot tables, and graphs can be created to track various performances of businesses, visualize trends, and also cater to areas that are weak and need improvement.
- Tools: It’s mandatory to inculcate different calculating tools as, in businesses, there is a lot of data to save, delete, manage, and integrate with other systems like inventory control and CRM. Hence, it becomes quite useful and provides authenticated and efficient results as well. If there are other intelligence tools, they should be inculcated in the system, as they help in analysing the hidden patterns and predicting the future of the business as well.
Accessing the GST portal
Accessing sales data from GST is no longer a difficult task. However, you first need to know how to access the GST portal.
There are different ways through which you can access the GST portal, and from there, you can go in-depth to know the export sales data, the GST portal, and other inquiries as well. It also helps in generating GST sales data reports.
While there are several ways through which you can access the GST portal, let’s have a look at them:
- Through online access: you can directly visit the official website of the GST portal and log in from there.
- Via logging in: You can directly log in to the GST portal by adding your username and password.
- Via digital signature: To file some important forms and other applications, a digital signature is needed.
- Through the mobile application: you can assess the GST portal through the application, or you can simply download the application directly from Google. The simplest way is to log in to the GST portal by entering your credentials.
- External application: Certain authorised GSPs help integrate the GST portal. With the help of these platforms, you can also manage compliance activities as well. Other than this, third-party software works the same way as they can access the GST portal.
Navigating the sales data section 120
These are the methods through which you can navigate the sales data section:
- Access the portal: Visit the official GST portal by clicking on the website.
- Locate the service menu: just when you log in, a dashboard will appear. You can go to the option of services now.
- Choose returns: Go to the services menu, and from there, you can visit the option of returns.
- Select relevant return: Choose the return that gives you access to the sales data that you need. If you wish to have sales information, you can select GSTR-1.
- Access data and report: In this option, you can have a look at the report, download the report, and generate the report as well.
Methods to retrieve sales data
To effectively retrieve GST sales data, some fundamentals need to be highlighted. These are:
- Internal sources
- External sources
In the internal sources, the following are the important points:
- Point of sale: It includes the storage of cash data in a modernized way. These cash registers are claimed to be powerhouses as they are responsible for providing details about all the recent and old transactions, product sales, and performance of the employees.
- CRM: It stands for customer relationship management. These systems help store information and details about customers, track the history of sales, and also help store customer interactions. It also helps in evaluating sales pipelines.
- Software: Accounting software can be the best investment as it informs quite well about profitability, customer patterns of spending, and the latest revenue trends.
- Inventory management: There are inventory management systems that are very helpful in offering insights into the products that are popular in the market. They help analyze the overstocking of the goods as well.
In the external sources, the following are the important points:
- Market research reports: Relevant market research reports help in gaining insights into the industry and its trends. It also helps in analyzing competitor’s approaches and customer behavior as well.
- Social media tools: Social media is the best platform to analyse the sentiment of the customer, and it also helps in monitoring brand perception.
- Web tools: Some online tools help optimise the online sales funnel. These are customer journeys, website traffic, and conversion rates.
Understanding different sales data metrics
The sales data has a lot of valuable insights into the business. There are a few metrics that are essential for every business. These are:
- Revenue: Revenue has to be the most vital component in any business. It’s the total amount of money that any business has earned from sales.
- CAC: It stands for customer acquisition cost. You can improve your marketing and sales strategy by learning and improving customer acquisition costs.
- CLTV: It stands for customer lifetime value. Its job is to predict the actual and total revenue that a business can make.
- Average order value: It evaluates the total amount that has been spent on the customer’s purchase.
- Conversion rate: This gives brief information about the leads that can be converted to paying customers. The sales funnel can be effective if the conversion rate is comparatively higher.
The importance of accurate data retrieval
The data that has been collected must be accurate by all means. False, incomplete, or fake data may create hassle in the overall process of sales, and that can bring havoc to the entire system and its accounting.
When the data is accurate, it helps in making decisions for businesses, it helps in building trust and credibility, and it also makes the overall process efficient and saves time. Since time is money in any business, one should look for ways to save time and make the process efficient by all means. It is also helpful in mitigating risks for your business. Lastly, it can be a great source of innovation and economic growth too.
The assessment of sales data isn’t an easy job as it requires prompt navigation regarding returns and reports. It’s recommended to use GSTR-1 to leverage the sales information. You can use GSTR-2A to quickly overview the scenario.
It’s suggested to download reports such as those that are rate-wise sales reports. Apart from these instructions, it’s best to stay up to date about any changes in the GST portal, calculations, or tax rates.
Staying up to date helps in accepting different challenges that are thrown by different organizations and businesses. When you think you are stuck somewhere and there seems to be no way out, it’s best to ask for help from a tax advisor or a sales expert.
Q1. How do I extract data from the GST portal?
To extract data from the GST portal, you first have to log in to the portal. To log in, add your name and password. Without these credentials, it will be impossible to log in to the portal.
Once you log in with the information of your name and password, select the option of returning to the dashboard. Now you have to select the month and the year for which you would like to download GSTR-2A. Now click on the download option, which will appear in the auto-drafted detail box.
Q2. How do I use the GST portal?
To evaluate the GST portal, the first step would be to go to the services > registration option > new registration option. Click yes. Once the new registration option appears, you have to click the temporary reference number > proceed.
From there, the GST credentials need to be verified. This verification can be continued using the OTP, which will be sent to the active phone number or email address. You can also operate the GST portal for sales data through these options.
Q3. How do I find the total sales?
The formula to calculate the total sales is:
Gross Sales = Original sale price x units sold
Q4. What is the total number of sales?
KPI is a basic validation of the total number of sales. As it’s mainly used by various departments in any organization, it helps in tracking the overall revenue that is generated from sales over time. As per the studies, the total number of sales also gives a reflection of the overall health of any business.
Q5. How is the number of sales calculated?
This number is an actual representation of the income that has been generated by any business over time.
It also indicates how much cash a company has on hand. To calculate sales revenue, the following formula is used:
Units sold x sales price = sales revenue
Q6. Do net sales include GST?
When the items are created, it’s up to you if you’d like to include GST in them. The net sale of any product will be considered after the deduction of refunds and taxes.
Q7. What is the formula for profit?
To calculate profit from GST or any other calculation, the following formula will be used:
Selling price – cost price = profit
Q8. What items are GST-free?
All categories of basic food and beverages, essential medical devices and medicines, menstrual products such as sanitary pads and cups, products related to childcare, religious or charitable services, and educational courses and activities.
Q9. Can GST expire?
The registration of GST for taxpayers can either be canceled or surrendered. However, it doesn’t expire and remains valid until its use.
Q10. How is GST calculated?
To calculate GST, the following formula is used:
GST = Original cost x GST rate percentage
To find out the net price, the formula will be:
Net price = GST amount + original cost