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 taxation’s. They are facing several transitional issues in acknowledging such a modified and encompassing tax system even although it is far compared to the earlier fragmented dicey tax physique. However, ERP is giving 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, was in fact 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 provide 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 brand new account codes.
ERP’s tax module support firms to calculate their tax returns on product sales and purchases data. After that it audits the number before filing the GST returns. Helps save up enormous time of your company’s accountants and helps them immensely once the daily transactions of goods or services are tremendous.
Error-free Taxes filing
Besides supporting all types of GST transactions, ERP’s tax engine assistance easy identification and correction of all errors for the 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 expert.
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 really needed. Being able to access from a cloud source point, tax accountants can work real-time without needing any manual data.
ERP is providing the facility to master all the specifics of GST regulations in an individual GST element. It enables the businesses or taxpayers to adhere to GST while issuing invoices for transactions. It configures the format for GST compliant invoices as 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 that companies. Their existing system needs major revamping along with must know which on the modules will affect and which will correlate to new tax rules.
While smooth transitioning with GST compliant ERP is still a costly affair, particularly for SMEs, several ERP companies are launching reasonably priced GST Online Registration in India-enabled ERP software to cure their associated with GST return filing. With it, rather than filing all of the returns manually, they will need just devote all sales and purchase invoices details and the GST returns gets computed automatically.