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Does Your Hotel PMS Software Help You Become GST Compliant?

Come July, India will witness a new and unified system of tax structure in the form of Goods and Services Tax (GST). Like any other industry, hotel industry too is preparing itself to operate as per this new taxation regime. And as a leading Hotel PMS Software we at IDS Next have also been working relentlessly to help hotels in their pursuit to become GST compliant.

Trouble with the existing taxation system

Presently the hotel industry is affected by multiple tax structures like service tax, luxury tax and VAT, levied by both central government and respective state government. For example, VAT varies from state to state and luxury tax depends on the proportion of the room tariff. Service tax depends on the types of services provided by the hotel. This leads to confusion as sometimes the same service or product gets taxed under multiple heads and multiple times. This leads to higher taxation which goes up to 27%. Additionally, some of the input tax from central and state taxes can’t be set-off against other taxes. In other words, this leads to a cascading effect.

How GST will help hotels in this?

Introduction of GST is expected to lower the costs for consumers due to tax set-off possibilities. It will also facilitate seamless movement of products and services across the country. With GST in place, the current multiple tax regimes will cease to exist. Thus, it would reduce the compliance costs and issues related to inspections, audits, and assessments. In fact, it would help hoteliers do business with ease.

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Implementation of GST makes it mandatory for hotels to adopt GST ready Hotel PMS Software. This would help hotels to capture transactions with accurate GST rates and reporting. For example, our FortuneNEXT 6.5 Hotel PMS has the capabilities to precisely compute GST for receipts, folios and tax invoices etc. Here is how IDS Next PMS can help you in this –

  • Hotels can calculate the correct tax payable on the sale of products and services to guests
  • For hotels, creation of tax codes and tax structures will become simpler. IDS Next Hotel PMS will assist in generating multiple returns required to be filed with GSTN.
  • IDS Next Hotel PMS Software will integrate with GST Suvidha Providers (GSP) to help hotels file their compliance related returns automatically (monthly and annually)
  • It will also help in reconciliation of mismatches in GST output and input credits thereby reducing the chances of manual interventions
  • Our Hotel PMS will assist hotels in filing their GST returns even if they have interfaces to third party finance modules
  • In generating invoices as per GST guidelines and invoice format
  • e- filing of all type of Dealer Returns Facility would become easy
  • IDS Next Hotel PMS will facilitate of e-Payment of taxes as per liable GST rates
  • Will help hotels maintain Tax Liability Register, Credit Ledger, and Cash Ledger
  • Users can generate ITC Match/Mismatch reports with ease
  • IDS Next will assist hotels in reconciliation with online GST portal and other official GST links

Offering top class services to guests is supreme for hotels. As your technology partner, let us take care of your compliance issues related to GST, so that you can stay focused exclusively on guest service aspect of your business.

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Senior Vice President – Sales, South Asia & Southeast Asia IDS Next. He manages a growing sales team in India, Nepal, Bhutan, Bangladesh and Myanmar Singapore, Thailand, Malaysia, Philippines, Indonesia, Brunei, Laos, Cambodia and Vietnam He has accumulated tremendous knowledge on our enterprise class Hotel ERP solution.