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 taxation’s. 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 software program. However, ERP is providing 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, given this 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 to have 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 their ERP’s tax module. As the new regulations, the tax module of ERP carries forward the closing balance of the tax credit from today’s to the account limitations.
ERP’s tax module assistance 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 this company’s accountants and helps them immensely once the daily transactions of goods or services are tremendous.
Error-free Taxes 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 tax 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 chiropractic physician.
Data Archiving & Protection
Businesses can save, archive and safekeep their tax data for any number of years at one submit an organised way. So, they can later hop on any time if requested. Being able in order to access from a cloud source point, tax accountants can figure real-time while not having any manual data.
ERP provides the facility to master all information about GST regulations in an individual GST module. It enables the companies or taxpayers to adhere to GST while issuing invoices for transactions. It configures the format for GST compliant invoices according to the business, auto-calculates the GST Registration Portal Login 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 so they must know which for the modules will affect and which will correlate to new tax rules.
While smooth transitioning using a GST compliant ERP to get a costly affair, particularly for SMEs, several ERP companies are launching reasonably priced GST-enabled ERP software to relieve their associated with GST return filing. With it, rather than filing all the returns manually, they will need just devote all sales and purchase invoices details and the GST returns gets computed automatically.