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Why MSMEs should use mobile applications for filing GST?

  • Aug 6, 2020 | Divita S Gupta

Why MSMEs should use mobile applications for filing GST?

Since its launch in July 2017, the Goods and Services Tax in India has been continually evolving to facilitate simpler filing of returns, faster disbursal of refunds and efficient reconciliation. These developments under the GST framework are made keeping in mind micro, small and medium enterprises that form a major chunk of registered taxpayers at approximately 13 million.

A major area of focus under the GST framework has been technology. Since GST was first implemented in the country, authorities have shown a willingness to adapt to technology solutions that will help with tax collection as well as analysis of tax data. Last year, the GST council announced the filing of NIL returns using text messaging (SMS) to facilitate faster filing of returns. While this is just one small change, the council is looking at using mobile applications for filing regular GST returns as well.

Why is this an advantage for MSMEs?
Simply put, a mobile application to manage taxes will make them a lot less taxing! But that is not the only reason why MSMEs should actively opt for mobile applications to file GST.

Time saving
With a decent WiFi connection or 3G or 4G network connection, taxpayers will be able to upload their invoices and report them in real time without any hassles.

User friendly
Because it is a mobile application, developers build the user experience to scale. Hence navigating through mobile applications for filing of GST returns will be easy, simple and user friendly.

Cost analysis
Cost benefit is an important decision making factor for MSMEs. Compared to expensive accounting software, a mobile based accounting application will be much more economical.

Adapt to automation
One of the perks of opting for accounting software over manual filing of returns is the automation. Now that the same is available on mobile, taxpayers can easily generate reports that will help them better understand how to manage their taxes.

Stay updated
Taxpayers will never miss their deadlines as mobile applications will share notifications on a regular basis ensuring their returns are filed within the stipulated timeline.

On the go
Filing taxes on the move is unimaginable as the returns are already prone to errors. But GST compatible applications can actually help taxpayers file their GSTR1, GSTR3B and GSTR4 with accuracy.

HSN Codes
One of the most significant tasks while filing returns is ensuring there are no errors in the HSN Codes. Because mobile applications will have the entire list of HSN codes that can be accessed by the taxpayer anytime, the probability of errors reduces dramatically.

Data Synchronization
To ensure that the taxpayer can access their GST data anywhere, these mobile applications are generally mobile as well as desktop compatible. Any data that is uploaded via mobile will automatically synchronize and will be available on the desktop version.

In an age where most MSMEs still depend on chartered accountants to process their taxes, the introduction of simple mobile applications that will help with real time reporting, manage billing and inventory and facilitate filing of returns will not only help with reducing increased costs of tax management but will also help ease compliance.


Avalara helps businesses of all sizes get GST return filing, e-way bill generation and e-invoicing right with cloud-based GST compliance solutions in India. Goods and Services Tax (GST) rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Divita S Gupta
Avalara Author Divita S Gupta
Divita has served as a writer and editor for top financial services organizations in India. She has written on topics like mutual funds, insurance, taxes, SME financing for globally recognized banking and financial organizations including ICICI, Aditya Birla Group, News Corp. With a Masters in Business Administration from Symbiosis International University, she currently owns a small business in Mumbai.

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