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 improved and encompassing tax system even though it is far much better the earlier fragmented dicey tax physique. 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, given this 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 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 their 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 brand new account limitations.
ERP’s tax module will firms to calculate their tax returns on product sales and purchases data. It then audits numerous before filing the GST returns. This saves up enormous time for 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 types of GST transactions, ERP’s tax engine help in easy identification and correction of all errors for your painless filing of taxes. Further, it helps companies in exporting of tax returns statement to MS Excel system to upload or later have for their Chartered Accountant, or tax doctor.
Data Archiving & Protection
Businesses can save, archive and safekeep their tax data in a number of years at one spot in an organised way. So, they can later jump on any time if requested. Being able in order to access from a cloud source point, tax accountants could work real-time without having to use any manual data.
ERP is providing the facility to master all particulars about GST regulations in an individual GST module. It enables the businesses or taxpayers to adhere to GST while issuing invoices for sales. 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 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, thinking about SMEs, several ERP companies are launching reasonably priced GST Registration Online in India-enabled ERP software to cure their associated with GST return filing. With it, as opposed to filing all of the returns manually, they need to have to just put in all sales and purchase invoices details and the GST returns gets computed automatically.