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 tax return. 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 system. However, ERP is supplying them with the facility to comply with GST and embrace the changes completely. 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 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 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 in the ERP’s tax module. At the new regulations, the tax module of ERP carries forward the closing balance of the tax credit from online marketing to the actual account writes.
ERP’s tax module support 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 for the company’s accountants and enables them to immensely as soon as the daily transactions of services or goods are tremendous.
Error-free Taxes filing
Besides supporting all connected with GST transactions, ERP’s tax engine help easy identification and correction of all errors for the painless filing of taxation assessments. Further, it assists companies in exporting of tax returns statement to MS Excel system to upload or later have for their Chartered Accountant, or tax practitioner.
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 any time if required. Being able to view from a cloud source point, tax accountants can work real-time without having any manual data.
ERP can give the facility to master all particulars about GST regulations in other GST unit. It enables the businesses 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 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 they must know which in the modules will affect and which will correlate to new tax rules.
While smooth transitioning to a GST compliant ERP is still a costly affair, individuals SMEs, several ERP companies are launching reasonably priced GST Online Registration in India-enabled ERP software to help relieve their associated with GST return filing. With it, as an alternative to filing all the returns manually, they require to just invest all sales and purchase invoices details and the GST returns gets computed automatically.