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 tax return. They are facing several transitional issues in acknowledging such an improved and encompassing tax system even though it is far much better than the earlier fragmented dicey tax equipment. However, ERP is providing them with the facility to comply with GST Online Registration in India 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, crafted 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 inside ERP’s tax module. At the new regulations, the tax module of ERP carries forward the closing balance of the tax credit from the current to fresh account writes.
ERP’s tax module assistance firms to calculate their tax returns on the sales and purchases data. It then audits numerous before filing the GST returns. Great deal up enormous time of this company’s accountants and enables them immensely once the daily transactions of goods or services are immense.
Error-free Tax returns filing
Besides supporting all connected with GST transactions, ERP’s tax engine support in easy identification and correction of all errors for that painless filing of taxation assessments. Further, it helps companies in exporting of tax returns statement to MS Excel system to upload or later tell their Chartered Accountant, or tax doctor.
Data Archiving & Protection
Businesses can save, archive and safekeep their tax data for a number of years at one spot in an organised way. So, they can later hop on any time if needed. Being able to look for from a cloud source point, tax accountants can figure real-time while not having any manual data.
ERP provides the facility to master all the owner of GST regulations in other GST component. It enables the companies or taxpayers to abide by GST while issuing invoices for purchases. It configures the format for GST compliant invoices specialists 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 and they must know which in the modules will affect and which will correlate to new tax rules.
While smooth transitioning using a GST compliant ERP may be a costly affair, particularly SMEs, several ERP companies are launching reasonably priced GST-enabled ERP software to ease their associated with GST return filing. With it, as an alternative to filing all the returns manually, they need to have to just invest all sales and purchase invoices details and the GST returns gets computed automatically.