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 software program. However, ERP is providing them with the facility to comply with GST and embrace the changes totally. 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, given this forth.
Read on below to know how ERP systems reveal a complete solution for businesses and services firms to comply with GST rules and undergo tax calculations.
Chart of Accounts
Businesses earlier used to buy 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 your past ERP’s tax module. After the new regulations, the tax module of ERP carries forward the closing balance of the tax credit from current to brand new account laws.
ERP’s tax module will firms to calculate their tax returns on the sales and purchases data. It then audits numerous before filing the GST returns. Great deal up enormous time for the company’s accountants and enables them to immensely when the daily transactions of goods or services are tremendous.
Error-free Taxes filing
Besides supporting all types of GST transactions, ERP’s tax engine assistance easy identification and correction of all errors for that painless filing of tax returns. Further, it helps companies in exporting of tax returns statement to MS Excel system to upload or later have for their Chartered Accountant, or tax doctor.
Data Archiving & Protection
Businesses can save, archive and safekeep their tax data as a number of years at one spot in an organised way. So, they can later access it any time if really needed. Being able to view from a cloud source point, tax accountants can work real-time without making use of any manual data.
ERP is providing the facility to master all particulars about GST regulations in an individual GST module. It enables the companies or taxpayers to comply with GST while issuing invoices for transactions. It configures the format for GST compliant invoices per the business, auto-calculates the GST Registration Online in India returns from every sale or purchase invoice and reconciles them.
All said and done, getting an ERP system GST ready is challenging job for that companies. Their existing system needs major revamping and also so they must know which of the modules will affect and which will correlate to new tax rules.
While smooth transitioning to a GST compliant ERP remains to be a costly affair, thinking about SMEs, several ERP companies are launching reasonably priced GST-enabled ERP software to ease their associated with GST return filing. With it, instead of filing all of the returns manually, they need to just invest all sales and purchase invoices details and the GST returns gets computed automatically.