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 an altered and encompassing tax system even though it is far better than the earlier fragmented dicey tax system. 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 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. At the new regulations, the tax module of ERP carries forward the closing balance of the tax credit from current to the new account writes.
ERP’s tax module assist firms to calculate their tax returns on the sales and purchases data. It then audits the amount before filing the GST returns. Could help prevent up enormous time of this company’s accountants and assists them immensely once the daily transactions of goods or services are outstanding.
Error-free Tax statements filing
Besides supporting all forms of GST transactions, ERP’s tax engine assistance 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 share with their Chartered Accountant, or tax chiropractic physician.
Data Archiving & Protection
Businesses can save, archive and safekeep their tax data for any number of years at one put into an organised way. So, they can later can get on any time if required. Being able to look for from a cloud source point, tax accountants works real-time without having any manual data.
ERP offers the facility to master all the specifics of GST regulations in some other GST element. It enables the businesses or taxpayers to adhere to GST while issuing invoices for purchases. It configures the format for GST compliant invoices according to the business, auto-calculates the GST Application Online in India 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 for the modules will affect and which will correlate to new tax rules.
While smooth transitioning to a GST compliant ERP remains to be a costly affair, individuals SMEs, several ERP companies are launching reasonably priced GST-enabled ERP software to relieve their associated with GST return filing. With it, rather than filing all of the returns manually, they decide to just invest all sales and purchase invoices details and the GST returns gets computed automatically.