GST is till date the biggest tax reform known that brought a uniform taxation system with many positive implications for the industries and exchange. 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 a modified and encompassing tax system even though it is far much better the earlier fragmented dicey tax software program. However, ERP is giving 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, and so 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 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 present-day to fresh 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. This saves up enormous time of the company’s accountants and enables them to immensely when the daily transactions of services or goods are outstanding.
Error-free Taxation assessments filing
Besides supporting all forms of GST transactions, ERP’s tax engine assistance easy identification and correction of all errors for that painless filing of taxes. Further, it helps companies in exporting of tax returns statement to MS Excel system to upload or later tell their Chartered Accountant, or tax chiropractic physician.
Data Archiving & Protection
Businesses can save, archive and safekeep their tax data for a number of years at one submit an organised way. So, they can later hop on any time if really needed. Being able to look for from a cloud source point, tax accountants can figure real-time while not having any manual data.
ERP can give the facility to master all information about GST regulations in will need to GST element. It enables the businesses or taxpayers to agree to GST while issuing invoices for negotiations. It configures the format for GST compliant invoices depending on 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 so they must know which of the modules will affect and which will correlate to new tax rules.
While smooth transitioning a few GST compliant ERP remains to be a costly affair, thinking about SMEs, several ERP companies are launching reasonably priced GST-enabled ERP software to relieve their process of GST return filing. With it, instead of filing all of the returns manually, they will need just devote all sales and purchase invoices details and the GST returns gets computed automatically.