GST is till date the biggest tax reform known that brought a uniform taxation system with many positive implications for the industries and promote. 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 altered and encompassing tax system even though it is far compared to 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, and so 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. As the new regulations, the tax module of ERP carries forward the closing balance of the tax credit from online marketing to brand new account codes.
Audit
ERP’s tax module will help firms to calculate their tax returns on product sales and purchases data. It then audits the amount before filing the GST returns. Could help prevent up enormous time of the company’s accountants and enables them to immensely when the daily transactions of Goods and Services Tax Website or services are huge.
Error-free Taxation assessments filing
Besides supporting all types of GST transactions, ERP’s tax engine assistance easy identification and correction of all errors for your painless filing of taxation assessments. 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 for a number of years at one put into an organised way. So, they can later jump on any time if required. Being able in order to access from a cloud source point, tax accountants can figure real-time without needing any manual data.
GST billing
ERP offers the facility to master all any personal GST regulations in some other GST component. It enables the companies or taxpayers to adhere to GST while issuing invoices for sales. It configures the format for GST compliant invoices depending on 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 and also so they must know which in the modules will affect and which will correlate to new tax rules.
While smooth transitioning the GST compliant ERP to get a costly affair, particularly SMEs, several ERP companies are launching reasonably priced GST-enabled ERP software to cure their process of GST return filing. With it, as opposed to filing all the returns manually, they need to have to just put in all sales and purchase invoices details and the GST returns gets computed automatically.