GST is till date the biggest tax reform known that brought a uniform taxation system with many positive implications for the industries and return. Ever since GST regulations came in the scene, many businesses, manufacturers, and traders are in confusion regarding the calculations of new taxes. They are facing several transitional issues in acknowledging such an altered and encompassing tax system even although it is far better than the earlier fragmented dicey tax equipment. However, ERP is providing them with the facility to comply with GST and embrace the changes wholeheartedly. 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, was in fact 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 eat a separate accounting code for computing VAT (Value Added Taxes) and ST (Services tax) in all Goods and Service Tax Registration in India Online and services transactions respectively. But, now those codes get combined with GST the actual ERP’s tax module. After the new regulations, the tax module of ERP carries forward the closing balance of the tax credit from present-day to brand new account laws.
ERP’s tax module assist firms to calculate their tax returns on product sales and purchases data. It then audits the amount before filing the GST returns. Helps save up enormous time of the company’s accountants and assists them to immensely when the daily transactions of goods or services are immense.
Error-free Tax returns filing
Besides supporting all varieties of GST transactions, ERP’s tax engine help in easy identification and correction of all errors for your painless filing of tax statements. Further, it assists companies in exporting of tax returns statement to MS Excel system to upload or later tell their Chartered Accountant, or tax provider.
Data Archiving & Protection
Businesses can save, archive and safekeep their tax data in a number of years at one put into an organised way. So, they can later can get on any time if needed. Being able to look for from a cloud source point, tax accountants can figure real-time without needing any manual data.
ERP provides the facility to master all the owner of GST regulations in an individual GST module. It enables adidas and puma or taxpayers to abide by GST while issuing invoices for purchases. It configures the format for GST compliant invoices 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 that companies. Their existing system needs major revamping and 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, individuals SMEs, several ERP companies are launching reasonably priced GST-enabled ERP software to relieve their process of GST return filing. With it, as an alternative to filing all the returns manually, they need to just invest all sales and purchase invoices details and the GST returns gets computed automatically.