GST is till date the biggest tax reform known that brought a uniform taxation system with many positive implications for the industries and trade. Ever since GST regulations came in the scene, many businesses, manufacturers, and traders are in confusion regarding the calculations of new tax. They are facing several transitional issues in acknowledging such a modified and encompassing tax system even although it is far better than the earlier fragmented dicey tax physique. However, ERP is supplying them with the facility to comply with GST and embrace the changes completely. ERP of renowned platforms like Oracle, SAP, Odoo is helping companies to administer and adopt GST system, including taxes computation, configuration, liability accounting, master data amendments, reporting, crafted forth.
Read on below to know how ERP systems unveil a complete solution for businesses and services firms to comply with GST rules and undergo tax calculations.
Chart of Accounts
Businesses earlier used to have a separate accounting code for computing VAT (Value Added Taxes) and ST (Services tax) in all goods and services transactions respectively. But, now those codes get combined with GST Registration in India in the ERP’s tax module. At the new regulations, the tax module of ERP carries forward the closing balance of the tax credit from the current to the new account laws.
ERP’s tax module assist firms to calculate their tax returns on the sales and purchases data. After that it audits the number before filing the GST returns. This will up enormous time of your company’s accountants and enables them to immensely once the daily transactions of goods or services are tremendous.
Error-free Taxes filing
Besides supporting all forms of GST transactions, ERP’s tax engine help in easy identification and correction of all errors for the painless filing of tax statements. Further, it assists companies in exporting of tax returns statement to MS Excel system to upload or later share with their Chartered Accountant, or tax chiropractic physician.
Data Archiving & Protection
Businesses can save, archive and safekeep their tax data as a number of years at one place in an organised way. So, they can later jump on any time if needed. Being able to look for from a cloud source point, tax accountants could work real-time without needing any manual data.
ERP provides the facility to master all the specifics of GST regulations in will need to GST unit. It enables the companies or taxpayers to take into accout GST while issuing invoices for operations. It configures the format for GST compliant invoices as per the business, auto-calculates the GST returns from every sale or purchase invoice and reconciles them.
All said and done, getting an ERP system GST ready is challenging job for the companies. Their existing system needs major revamping so they must know which of the modules will affect and which will correlate to new tax rules.
While smooth transitioning using a GST compliant ERP to get a costly affair, particularly for SMEs, several ERP companies are launching reasonably priced GST-enabled ERP software to relieve their associated with GST return filing. With it, instead of filing all the returns manually, they will need just invest all sales and purchase invoices details and the GST returns gets computed automatically.