Supreme Court Rejects the Plea of Extending Moratorium Period, Says Even a Full Interest Waiver Is Not Possible

Hearing the plea of extending the loan moratorium period filed by trader associations, Supreme Court clearly stated that this period couldn’t be extended, adding that a full interest waiver is also not possible. With this verdict, Supreme Court has given relief to the banks which have suffered a huge financial loss due to the pandemic. The court said that if a bank has charged interest on loan interest for an extended period, it must be returned.

The court further stated that the government has the right to take economic decisions, Indian economy has been badly suffered due to the Covid-19 pandemic. We cannot interfere with the government policy on economic reforms. The judgment was jointly delivered by a bench of Justices Ashok Bhushan, Justice R. Subhash Reddy, and Justice MR Shah.

Earlier, in the same case, the government had given relief to the bank borrowers on EMI payments. In fact, last year during the lockdown, the country's central bank RBI had announced to offer a moratorium to lending companies from March 1 to May 31, which was extended till August 31, 2020.

Complaints on Charging Interest on Interest

With the scheme of offering a moratorium from March to August 2020, a large number of borrowers took advantage. But later disputes have arisen on banks’ interest charge on interest over the outstanding amount. The case was filed and the matter reached the Supreme Court. The court had asked for an answer from the central government on the extra interest charged on the deferred EMI. In the reply, the government waived the interest on the outstanding instalments for loans up to Rs. 2 crores.

The government's proposal for the loan up to 2 crore includes MSME loans, education loans, home loans, credit card dues, car-two wheeler loans, and personal loans. With this scheme, the entire burden of economic loss and waived loan period fell on the government, for which the government had spent around 6 thousand to 7 thousand crore rupees.

Under the Moratorium, the Borrowers Got 6 Months to Choose Not to Pay their EMIs

Under the moratorium scheme, the borrowers got 6 months to choose not to pay their EMIs against the loans they availed. But banks charged interest on the interest over the outstanding amount. The purposed scheme was brought out in order to ease the burden on borrowers during the pandemic.

Banks Were Asked Not to Declare the Loan NPA during Moratorium Period

The moratorium period was extended for another three months after waiving off EMIs payments for the first three months. During the time, RBI asked banks not to declare the loans NPA after one-time restructuring them. Under this, RBI asked banks to include only those companies and borrowers which have not defaulted for more than 30 days from March 1, 2020. Banks were also asked to bring a resolution plan by 31 December 2020 and implement it by 30 June 2021 for corporate borrowers.

  

Everything you need to know about GST E-Invoicing

 

Introduction

The government recently introduced a concept of E-Invoice in the GST eco-system from January 1, 2020. A great forward move taken towards the ease of doing business, which will certainly reduce compliance burden as well as increase business efficiency. Globally E-Invoice is not a new concept, already implemented successfully in more than 100 countries. Don’t go with its name, it is not an invoice which will be required to be generated from Govt. portal rather it will be generated in the same manner as currently generated, additionally it will be reported to Centralized portal where such invoice will be validated and reverted back with invoice reference number along with QR code to the taxpayer.

Change in the invoicing system after GST E-Invoice implementation

GST E-invoice will change the existing invoicing system by adding few new steps and aims to reduce compliance burden, errors in manual processing of invoices, paper use, fake invoices, etc. the government is going standardize the invoicing system.

Currently, Invoice generated by each software may look more or less the same, however, they can’t be understood by another computer system even though business users understand them fully. (For example, an Invoice generated by SAP system cannot be read by a machine, which is using ‘HostBooks’ system) Likewise, there are hundreds of accounting & billing software, which generate invoices, but they all use their own formats to store information electronically and data on such invoices can’t be understood by the GST System if reported in their respective formats. Further, the format of reporting in GSTR-1 and that for the e-way bills are different from the original invoice and are to be done separately. The consignor or transporter must generate his e-way bill by again manually importing the invoices in excel format or JSON.

To cope with these issues the invoicing system is standardized which will no way impact the way the user would see the physical (printed) invoice or electronic (ex pdf version) invoice. There will be changes in the current operating accounting systems to make them available for the E-invoicing facility. This will have a huge disadvantage for Desktop and other accounting systems, which are not integrated with the GSTN Portal. Whereas all these software providers would adopt the new e-Invoice standard wherein they would re-align their data access and retrieval in the standard format.

In other words, users of the software would not find any change, the taxpayer would continue to use his accounting system/ERP or excel based tools or any such tool for creating the electronic invoice as s/he is using today. The required updation will be done by software/ERP providers into their software/ERP.

Benefits of E-Invoicing

1. Better taxpayer services

• One-time reporting on B2B invoice data in the form is generated to reduce reporting in multiple formats (one for GSTR-1 and the other for the e-way bill).
• To generate sales and purchase register (ANX-1 and ANX-2) from this data to keep the Return (RET-1 etc.) ready for filing under New Return. e-Way bill can also be generated using e-Invoice data
• It will become part of the business process of the taxpayer
• Substantial reduction in input credit verification issues as the same data will get reported to the tax department as well to the buyer in his inward supply (purchase) register.
• On receipt of info through GST System as the buyer can do reconciliation with his Purchase Order and accept/reject in time under the New Return.

2. Reduction of tax evasion

• Complete trail of B2B invoices
• System-level matching of input credit and output tax

3. Efficiency in tax administration

• Elimination of fake invoices

Responsibility of generation of E-invoice

Responsibility to generate e-invoice has been assigned to the taxpayers, E-invoicing will be implemented in a phased manner and it is currently applicable to B2B (Invoice/Debit Note/Credit Note), where in the first phase it is optional to the taxpayer from January 1, 2020, to March 31, 2020. In the second phase from April 1, 2020, it will be mandatory to be generated by the registered person, whose aggregate turnover in a financial year exceeds one hundred crore rupees.

Process of the generation of E-invoice

• Step 1: E-invoice will be created by Taxpayers on their own accounting/billing/ERP System
• Step 2: The e-invoice, as prepared, will be reported on Invoice Reference Portals (IRP)
• Step 3: IRP will generate unique Invoice Reference Number (IRN) which will be attached to the e-invoice and the system will digitally sign the same and return to the taxpayer (supplier) as well as the recipient.
• Step 4: The IRP will also generate a QR code containing the unique IRN along with some important parameters of the invoice like GSTIN of supplier and buyer, invoice number, date,
• Invoice value, total tax amount and HSN code of the major item. And the same is to be returned to the supplier.
• Step 5: GST System will then generate a return as well as an e-way bill from this data.
• Step 6: QR code will enable offline verification using the Mobile App.

Refer to the technical flow of e-Invoice generation below:

Conclusion

The GST officers have come over the conclusion that it would be mandatory for businesses (with a turnover of Rs. 100 crores) to generate ‘e-invoice’ for every sale on the government GST portal. Surely, the concept of the GST e-invoice generation system has been taken into consideration to reduce GST evasion and to bring transparency to the tax regime.

How smart POS software like HostBooks can increase business growth

Dramatic technical changes have strengthened Point of Sale technology over the past years and changed the retail climate as well. POS systems have much to offer for both small and large enterprises. A modern POS program is truly the all-in-one tool that any company needs to take its efforts to the next level, from strengthening customer relationships to offering more options for consumers to pay for its products. Whether you're a small restaurant or a large retailer, a POS system can help you grow your business in many ways.

We don’t want you to make any mistake; the relationship you have with your customers can make or break your business, literally. Whether you're a billion-dollar corporation or a small mom-and-pop shop at the corner doesn't matter; if you don't have a good relationship with your customers, sales will plummet, your reputation will fall, and you'll find challenges of attracting new customers.

Keep your customers in mind, and use a POS system to serve them better. When you know them on a first-name basis, customers are more likely to feel welcomed and have some idea of what they would like to buy. This level of personal contact will make consumers feel more relaxed, thereby making a purchase more likely.

When there are so many options available today, choosing the right software for your business becomes imperative. HostBooks is one such POS software that helps businesses simplify their retail operations. Its cloud-based technology enables business owners to securely access their data 24/7. Besides, you can view your business performance in real-time from wherever you are.

Here’s how HostBooks POS software can help your business grow

Advanced Inventory Management 

A Point of Sale system can help to take the guesswork out of stock levels and help minimize the frustration of customers if a product is sold out. You can set up automatic reorder alerts by using the POS program to monitor your inventory and identify those overstocked lines. On point inventory, especially those with multiple locations can be of great benefit to businesses. Your Point of Sale system should let you see how much of an item you have, and where it is located. It's necessary to have an easy and correct way of tracking stock when expansions and growth occur within your business.

Hassle-free Reporting 

Your point-of-sale program will give you easy and fast reporting functions. In one place connecting horizontal business areas such as sales, marketing, and finance increases efficiency. Your integrated POS can remove reporting from different applications and answer questions about your business directly.

Collaborative Employee Management 

It's important to have a stellar workforce to develop your company and your Point of Sale system is something that can help manage your employees. HostBooks POS software allows you to monitor which member of staff performs well, who promotes unique products, and who may be underperforming.

Faster Payments 

Using a POS program to build a more efficient checkout process will let clients know they can easily get through the lines. That can mean the difference between your choice of potential customers or the competition. If your lines are shorter and the checkout process is smoother, there is a good chance that you will be the first pick.

Cloud Access

Another hugely important factor in growing your business is having access to your data. A way to access the full system data remotely would allow you to strategize for growth and still have control over the overall status. And if you want your company to expand then having access from every position is certainly an added bonus.

An effective real-time view 

HostBooks Point of Sale software offers real-time analyzes of the ongoing business processes. It provides accurate reports on different aspects of the business which helps to make better decisions. Basically, it encourages the business's growth and success by clearly pointing out the fundamental improvements that you need to make in the business processes.

Automated CRM 

Our Point of Sale system makes massive upgrades in your customer relationship management (CRM). You can easily find the record of single or multiple customers so that they can conveniently return or swap the purchased goods in no time. Being willing to return or trade is an important factor these days. 

Manage customer CRM files, give discounts and Loyalty cards (earn loyalty points on purchases which can be redeemed against future purchases), or build promo campaigns to turn one-time customers into lifetime companions for your business, HostBooks POS software brings all in one package for you.

Point of Sale or POS software greatly simplifies the management of the functions of your business. It not only increases the company's versatility but also helps you expand it through the management of complex functions.

COVID-19 Nationwide Lockdown: The Impact on Indian Economy and GDP

It does not take an economist to state that a complete 21-day social and economic lockdown of India will have a severe impact on the supply side of the economy, such as the production and distribution of goods and services, except for the essential items that are excluded.

 In an economy that is already reeling under a demand crisis, rising unemployment, a decline can be seen in manufacturing production and income. At this point of time, all of them are now occurring together for many quarters, a supply-side restraint will deliver a major blow to a large number of citizens, jeopardizing prospects for growth and social and economic well-being.

The blow to individuals and companies may have been greatly reduced but it is also struggling due to lack of foresight, preparation, and strategies. It would have saved the government too from a wild scramble.

The shutdown of planes, trains, and bus services had forced people to rush into airports, railway stations, and bus stands, allowing social distancing ridicule again. It had a different effect. Inter-state migrants have been seen walking hundreds of kilometres to their homes with women and children in tow because there was no transportation and no work.

Earlier for several daily wagers, there was no food or money to purchase the food. But for now, in Delhi, thousands of daily wagers crowd shelter homes set up by the government to provide them with food and requesting them to make social distancing once again. Business Today estimated approximately 300 million informal workers could be vulnerable and seek assistance.

The social and economic condition in India would be impacted to a great extent. All we can do is do our bit by adhering to the precautionary measures and help the government condemn the spread of this deadly pandemic. Let’s make sure that we are in this together.

Emerging Trends of Accounting & Bookkeeping in 2020

At the beginning of the year, the accounting industry was in the midst of an ongoing boom, meaning consistent industry growth. But the current economic situation has turned the tables and compelled businesses to ponder over adopting digitalization and technologies so that they can work with ease and on the go.  The emergence of new accounting technology, along with some obstacles, would offer businesses with many new opportunities. 

The early bird catches the worm! In the same way, staying up to date with the new technical developments in the accounting field would help the businesses to remain up-to-date with rivals and succeed in the future for a long time.

Here are top 5 accounting trends to be aware of in 2020.

Accounting Trend#1: The rise of Automation & Artificial intelligence

Accounting automation is a trend that can save companies a great deal of time when it comes to accounting tasks. It slowly eliminates the need for manual data entry and saves a huge amount of production hours for businesses. The purpose of accounting automation is to reduce the burden of manual bookkeeping and accounting and to use that time to address actual real-time accounting issues.

Though automation and accounting software may seem like a threat to accountants, in the near future they won't replace accountants. Automating accounting is extremely beneficial for small business owners and entrepreneurs.

Accounting Trend#2: Blockchain - Introducing authentic source of trust 

The trends that have revolutionized accounting are not only automation and artificial intelligence, but the blockchain is also another tech trend that seeks to revolutionize the way we understand the transfer of funds and globalization taking place. The blockchain is a distributed ledger that is made in such a way that if a fraudulent transaction is attempted or someone tries to "spend" the same amount twice, it will get rejected. It’s a form of “trustless trust”, and does not need big institutions like banks to work.

Accounting Trend#3: Cloud - Access your business on the go

Although accounting software has existed for years, switching to the cloud is a fairly new trend that has evolved after a decade. The transformation is not underway and a number of companies have already taken the leap of faith.

Cloud helps organizations to access their business data anywhere anytime. Now you don't need to be at your workstation for analyzing your accounting data, you can do it at home or even on business trips too. The data on the cloud is secure and provides you a real-time view of how your business is performing. 

Accounting Trend#4: The adoption of Data Analytics and Science

It's important that you get the right information when making any financial decisions. The latest accounting trends suggest that accounting professionals need to be aware of the pricing structure of the company, proceed with the correct data while applying the required mathematics.

With the correct use of data science, businesses can make a simple identification of the details. It will also help businesses by navigating through any challenges in the business’s external environment.

Accounting Trend#5: E-commerce - A new concept of the growing market 

One more recent addition to the list of emerging accounting trends is e-commerce. The Internet has succeeded in bringing e-commerce to another level by also making it an option for online shopping.

The information & technology that comes with e-commerce can benefit accountants by offering accurate statistics and help them to access the true cost of goods. This would also encourage them to balance promotional expenditures with the true cost of goods.

How these accounting trends are changing the future of accounting

Cloud and AI have effective means of automating and streamlining manual and transactional activities. However, the tasks that would be difficult to automate will be those provided by the decision-making and planning of professional financial experts. Consequently, accountants will make their jobs future-proof by embracing technology and building on their position as the most respected and admired company for their clients.

For any sector worldwide, the technological revolution has been at the forefront and its consequences have been felt even in the smallest of companies. So, just welcome and embrace the transition. Within the accounting environment, the only constant is the transition and stability of its fluctuations. 

So is your business ready to adopt these new changes?

How Small Businesses can Survive the Impact of Coronavirus?

With a significant disruption to economic activity and international trade, the world is quickly sliding into a recession. Sequoia Capital, a venture capital firm based in Silicon Valley has released a memo that it sent to its funded companies. The note comprised of three major parts: stay healthy and safe, impact are/would be occurring on business revenue, and advice on dealing with potential business consequences of the coronavirus.

While it may feel like that there is little you can do during this pandemic, it is important to know that many successful companies have been created before in times of recession. Every so often, challenging times can bring the best out of us. This makes it possible to come up with innovative and creative solutions, not just to succeed but to survive difficult situations. Major companies like Uber, WhatsApp, Square and Pinterest were all started in 2008 and 2009.

Let's now dive into some of the beneficial tips for startups that are funded or seeking funding, and also to small businesses in general that are struggling during this pandemic.

Take charge of your cash flow: We all have heard the saying that it is important to save money for a rainy day. That day is here and now. Hence, take a look at the cash on hand and make plans on how it could help you last for at least next three to six months. Alternatively, if you do not have sufficient cash on hand, plan on cutting your expenses or increase sales by doing something unique.

Revisit your sales forecasts: If you are still working on achieving projections that were set before the ongoing crisis, you might need to review it again. If revisions need to be made, set yourself a realistic target. The objective is not just to lower your projects but if possible, devise measures that could help you sell more of your products or services. There may be new markets to touch, new audience to reach, or even a partnership to be made.

Devote more creativity, less cash in marketing: When starting your business, you might have relied on word of mouth and network as ways to market your products and/or services. There is also the organic social media strategy to help you cut down on your marketing expenses. In other words, be creative and take initiatives that help you promote your business without costing you a lot.

Keep expenses to a minimum: As you examine your cash flow, look for ways to lower employee expenses. During the ongoing lockdown period, travel and event are already halted. If you need to hire additional manpower, you can look for freelances or contractors instead of full-time employees. Also, allow your employees to work remotely.

Small businesses and startups that survived the financial crisis of 2007-08 didn't take dangerous risks that would threaten their companies existence. At that time, survival mattered to them more than success. Hence, take the appropriate actions that help you come out of this crisis stronger than ever.

How Small Businesses are Facing the Coronavirus Crisis?

Whether you turn on a television, browse social media, or read daily newspapers, everywhere you will find one same topic: the global outbreak of Coronavirus. For a lot of people, the recently declared pandemic is already changing the way they work. In the coming weeks, months or even years, their life too will take a bizarre turn. Things will no longer remain the same, especially for those who are planning to start their business.

The owners and employees running small businesses are already making difficult choices: whether to stay open and take risks with the health of their personnel and clients or shut doors until everything settles. Most of these businesses are already running with a minimal profit, whereas some have not even seen their first profit. The decision is a tough one, and more dire situations will come.

While we are still wondering about the pandemic's impact on the global economy, one thing is evident: whatever comes next will be unlike anything we have seen before.

Let us dive into how Coronavirus is impacting small businesses.

Distribution of benefits packages

If we have already learned anything from this pandemic is that the strength of a country's public health can be determined by the health of the person with the least resources. As the gap between people with and without the needed resources get bigger, it will be even more challenging to meet each individual's health-care needs. Although Asia and Europe are both struggling with this unfortunate situation, the developing countries could be hit harder, as for the majority of people taking preventative care is out of reach or insignificant.

Many employees rely on their employer-provided health insurance, sick leave, and paid time off to take care of their health and maintain wellness. Major companies like Microsoft and Google are not only capable to tackle this crisis head-on but also offer a competitive package with benefits that keep employee content. Hence, small and medium-sized businesses might need to offer the same or at least of their capability to retain employees.

However, as the outbreak takes even bigger shape, it is still unclear whether the responsibility of providing relief will fall directly upon small businesses or the government. One thing is certain: nobody wants to be left to feel helpless. On the other end, the economic fallout because of this pandemic has been pretty clear around the globe. From NASDAQ to NSE, every stock exchange has witnessed a sharp drop on a daily basis.

Small businesses will notice changes in the way they shop, move, and even do business. Now, we all have to just wait and watch for things to pan out naturally. As someone said once, "This too shall pass".