GST is till date the biggest tax reform known that brought a uniform taxation system with many positive implications for the industries and return. 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 better than the earlier fragmented dicey tax system. However, ERP is providing 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 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 the actual ERP’s tax module. At the new regulations, the tax module of ERP carries forward the closing balance of the tax credit from online marketing to fresh account writes.
ERP’s tax module will help firms to calculate their tax returns on the sales and purchases data. After that it audits quantity of before filing the GST returns. This will up enormous time of your company’s accountants and assists them to immensely as soon as the daily transactions of services or goods are tremendous.
Error-free Tax statements filing
Besides supporting all forms of GST Registration Portal Login transactions, ERP’s tax engine help out with easy identification and correction of all errors for your painless filing of tax statements. Further, it helps companies in exporting of tax returns statement to MS Excel system to upload or later share with their Chartered Accountant, or tax provider.
Data Archiving & Protection
Businesses can save, archive and safekeep their tax data for any number of years at one place in an organised way. So, they can later access any time if really needed. Being able to view from a cloud source point, tax accountants can work real-time while not having any manual data.
ERP provides the facility to master all the specifics of GST regulations in some other 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 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 the companies. Their existing system needs major revamping so they must know which for the modules will affect and which will correlate to new tax rules.
While smooth transitioning with GST compliant ERP is still a costly affair, especially for SMEs, several ERP companies are launching reasonably priced GST-enabled ERP software to relieve their associated with GST return filing. With it, as an alternative to filing all of the returns manually, they need to just put in all sales and purchase invoices details and the GST returns gets computed automatically.