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 taxation’s. They are facing several transitional issues in acknowledging such an altered and encompassing tax system even although it is far compared to the earlier fragmented dicey tax equipment. 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 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 buy 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 current to the new account writes.
ERP’s tax module will help firms to calculate their tax returns on the sales and purchases data. It then audits the amount before filing the GST returns. Great deal up enormous time for the company’s accountants and assists them immensely as soon as the daily transactions of services or goods are titanic.
Error-free Taxation assessments filing
Besides supporting all connected with GST transactions, ERP’s tax engine support in easy identification and correction of all errors for the painless filing of taxation statements. Further, it assists companies in exporting of tax returns statement to MS Excel system to upload or later have for their Chartered Accountant, or tax chiropractic physician.
Data Archiving & Protection
Businesses can save, archive and safekeep their tax data in a number of years at one spot in an organised way. So, they can later hop on any time if sought. Being able to view from a cloud source point, tax accountants perform real-time without making use of any manual data.
ERP can give the facility to master all particulars about GST regulations in an individual GST component. It enables the businesses or taxpayers to take into accout GST Registration Online in India while issuing invoices for transactions. It configures the format for GST compliant invoices as per 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 in order to be a costly affair, especially for 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 of the returns manually, they need to just invest all sales and purchase invoices details and the GST returns gets computed automatically.