GST is till date the biggest tax reform known that brought a uniform taxation system with many positive implications for the industries and trade. Ever since GST regulations came in the scene, many businesses, manufacturers, and traders are in confusion regarding the calculations of new tax. They are facing several transitional issues in acknowledging such an improved and encompassing tax system even although it is far much better than the earlier fragmented dicey tax system. However, ERP is supplying them with the facility to comply with GST and embrace the changes totally. 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 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 Tax Website and services transactions respectively. But, now those codes get combined with GST their ERP’s tax module. Post new regulations, the tax module of ERP carries forward the closing balance of the tax credit from today’s to the actual account codes.
ERP’s tax module will firms to calculate their tax returns on the sales and purchases data. It then audits quantity of before filing the GST returns. Helps save up enormous time of this company’s accountants and assists them to immensely when the daily transactions of goods or services are tremendous.
Error-free Tax statements filing
Besides supporting all forms of GST transactions, ERP’s tax engine help easy identification and correction of all errors for that painless filing of taxation statements. Further, it helps companies in exporting of tax returns statement to MS Excel system to upload or later give away to their Chartered Accountant, or tax practitioner.
Data Archiving & Protection
Businesses can save, archive and safekeep their tax data in a number of years at one placed into an organised way. So, they can later can get on any time if sought. Being able to get into from a cloud source point, tax accountants works real-time without needing any manual data.
ERP is providing the facility to master all particulars about GST regulations in an individual GST unit. It enables the businesses or taxpayers to abide by GST while issuing invoices for transactions. It configures the format for GST compliant invoices according to 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 also so they must know which of the modules will affect and which will correlate to new tax rules.
While smooth transitioning a few GST compliant ERP may be a costly affair, particularly SMEs, several ERP companies are launching reasonably priced GST-enabled ERP software to cure their associated with GST return filing. With it, instead of filing all of the returns manually, they require to just invest all sales and purchase invoices details and the GST returns gets computed automatically.