GST is till date the biggest tax reform known that brought a uniform taxation system with many positive implications for the industries and promote. Ever since GST regulations came in the scene, many businesses, manufacturers, and traders are in confusion regarding the calculations of new tax return. They are facing several transitional issues in acknowledging such a modified and encompassing tax system even although it is far much better than the earlier fragmented dicey tax pc. 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 Registration in India system, including taxes computation, configuration, liability accounting, master data amendments, reporting, and so 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 have got 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 inside ERP's tax module. After the new regulations, the tax module of ERP carries forward the closing balance of the tax credit from today's to the actual account writes.
ERP's tax module assistance firms to calculate their tax returns on product sales and purchases data. It then audits the amount before filing the GST returns. This will up enormous time of your company's accountants and helps them immensely when the daily transactions of goods or services are immense.
Error-free Tax returns filing
Besides supporting all types of GST transactions, ERP's tax engine help out with easy identification and correction of all errors for that 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 doctor.
Data Archiving & Protection
Businesses can save, archive and safekeep their tax data as a number of years at one put into an organised way. So, they can later access it any time if sought. Being able to get into from a cloud source point, tax accountants can work real-time without having to use any manual data.
ERP can give the facility to master all particulars about GST regulations in other GST module. It enables the lenders or taxpayers to take into accout GST while issuing invoices for transactions. 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 your 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 with GST compliant ERP to get a costly affair, particularly SMEs, several ERP companies are launching reasonably priced GST-enabled ERP software to ease their process of GST return filing. With it, as opposed to filing all of the returns manually, they decide to just put in all sales and purchase invoices details and the GST returns gets computed automatically.