GST is till date the biggest tax reform known that brought a uniform taxation system with many positive implications for the industries and exchange bombs. Ever since GST regulations came in the scene, many businesses, manufacturers, and traders are in confusion regarding the calculations of new place a burden on. They are facing several transitional issues in acknowledging such an altered and encompassing tax system even though it is far compared to the earlier fragmented dicey tax system. However, ERP is supplying 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, technique was known forth.
Read on below to know how ERP systems roll out 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 Application Online in India in the ERP’s tax module. After the new regulations, the tax module of ERP carries forward the closing balance of the tax credit from the current to fresh account writes.
Audit
ERP’s tax module assistance firms to calculate their tax returns on the sales and purchases data. After that it audits numerous before filing the GST returns. This will up enormous time of this company’s accountants and assists them immensely when the daily transactions of services or goods are outstanding.
Error-free Taxation assessments filing
Besides supporting all connected with GST transactions, ERP’s tax engine help out with easy identification and correction of all errors for that painless filing of taxation assessments. Further, it assists companies in exporting of tax returns statement to MS Excel system to upload or later tell their Chartered Accountant, or tax expert.
Data Archiving & Protection
Businesses can save, archive and safekeep their tax data to find a number of years at one submit an organised way. So, they can later access it any time if requested. Being able in order to access from a cloud source point, tax accountants can work real-time while not having any manual data.
GST billing
ERP can give the facility to master all particulars about GST regulations in some other GST module. It enables the lenders or taxpayers to adhere to GST while issuing invoices for transactions. It configures the format for GST compliant invoices specialists 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 this modules will affect and which will correlate to new tax rules.
While smooth transitioning using a GST compliant ERP may be a costly affair, especially for SMEs, several ERP companies are launching reasonably priced GST-enabled ERP software to help 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.