GST or Goods and Service Tax is an indirect tax levied on the supply of goods and services in the entire country. And just like all other business sectors, the hospitality industry is also included under the GST slab.
In recent years, the Government of India has been fixating on digital India and lately has introduced e-invoicing for hotels and other businesses.
But before jumping to the latest update in the e-invoicing integration, let’s have a quick look at what e-invoicing is.
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What is E-Invoicing?
Electronic invoicing or e-invoicing is a process of billing for businesses where they present and monitor invoices between the buyer and seller. Simply speaking, an e-invoice is a bill that is issued, processed, received, and saved using an electronic system.
This invoicing method comes with a number of advantages. Apart from automating transactions, it allows real-time tracking of taxes and archives the invoices, keeping a note of all your transactions.
With this integration, hotels, restaurants, and other hospitality establishments can generate GST-compliant invoices, reduce manual errors and most importantly, keep their taxes streamlined and updated.
The Government of India’s GST Update
In 2021, The Government of India mandated e-invoicing for all businesses (including hotels) that have an annual turnover of Rs 50 crores and above for their B2B transactions. Keeping in sync with the same release, the GOI has released another update recently that has reduced the turnover threshold from Rs 50 crores to Rs 5 crores.
This means if your property has an annual turnover of Rs 5 crores or more for its B2B transactions, then you must have e-invoicing enabled with your system.
Note: The turnover limit is for the entire company, not the individual property under a group.
Now, the hospitality sector is a highly transactional one. It undergoes countless B2B transactions every day— suppliers, and utility bills like electricity, Wi-Fi, corporate events, and many more. Making e-invoices for each of them separately will not only be a hectic process but will also include manual errors.
Want to know more about GST for hotels? Here’s everything you need to know.
For businesses to comply with e-invoicing easily, third-party software can be separately integrated with their system. This software can automatically update all GST-related information to the GOI’s portal without human intervention.
And Cleartax is one such software.
How Cleartax Integration Will Benefit The Hospitality Industry?
Cleartax is a third-party software that when integrated with your existing hotel PMS solution or restaurant POS, can automate GST e-invoicing. This integration will give you paperless, error-free and automated invoicing with no manual inputs.
Cleartax e-invoicing integration for hotels and restaurants also automates the GST return filing process and resolves data reconciliation gaps under GST. Plus, your GST-related financial data are always up-to-date and error-free.
How to Integrate Cleartax?
Now that you have a clear understanding of how Cleartax can help your business, let me guide you on how you can integrate it into your property.
Requirements
The most important (and the ONLY) thing you need to integrate Cleartax with your property is a cloud-based hotel PMS system or a cloud-based restaurant POS software (depending on your property type).
So basically you need to integrate your hotel/restaurant software with this third-party software so that it has access to all your B2B transactions, bills, and financial data (Don’t worry, the software is end-to-end encrypted and safeguards your confidential data).
How can eZee Help You Integrate E-Invoicing?
With an industry experience of more than a decade, eZee has been helping thousands of hospitality establishments with its cutting-edge technology. It is one of the very few hospitality technology providers in the world to develop and offer end-to-end hotel and restaurant solutions and is currently India’s #1 hospitality tech provider.
With the recent e-invoicing mandate, eZee has a new offering. To make e-invoice integration easy for hotels and restaurants, it has consolidated its cloud-based hotel PMS software— eZee Absolute, and cloud restaurant POS– eZee Optimus with Cleartax..
This makes eZee’s hotel management software and restaurant management software GST-compliant.
Meaning, at a nominal cost, hoteliers and restaurateurs (with an annual turnover of Rs 5 crore & more) using eZee Absolute and eZee Optimus can directly enjoy the benefits of Cleartax, without any technical hassle or additional interference.
Here’s everything you need to know about our integration with Cleartax!
This will allow hotels and restaurants to provide electronic invoicing to their travel agents, guests, etc. with the company’s unique IRN Number and Barcode and comply with the government’s statutory requirements.
How to Avail of This Integration?
If you are already using eZee’s PMS or POS, then all you need to do is contact your account manager to avail of this integration.
And if you are still wondering whether you should replace your current hotel software with eZee Absolute, we give you ten reasons to do so!
Conclusion
The debate on technology can go on endlessly, but automation is a blessing– that’s a given. With countless operations in the hospitality industry, adding one more even sounds hectic.
And now with e-invoicing made mandatory, it will be a bit more load. But given you have a clear idea of what GST, e-invoicing and Cleartax is, it is going to be a tad bit easy for you. But if you are already using eZee’s solutions then you know how to cut it all through.
In the end, eZee is all about making hoteliering easy.
