GST is by far the largest tax reform, bringing a unified tax system that has had many positive effects on industry and trade. Since the introduction of the GST regulations, many companies, manufacturers and traders have been confused about the calculation of new taxes. They face several transitional issues in recognizing such a modified and included tax system, although it is much better than the early dispersed dangerous tax system. However, ERP is providing them with facilities that are subject to GST and are fully committed to these changes. ERPs from well-known platforms such as Oracle, SAP, and Odoo are helping companies manage and adopt GST systems, including tax calculations, configuration, accountability, master data modification, and reporting.
Read the following to learn how the ERP system can provide a complete solution for businesses and service companies to comply with GST rules and conduct tax calculations.
Chart of accounts
Previous companies used to have separate accounting codes for calculating VAT [VAT] and ST [Service Tax] in all goods and services transactions. However, these codes are now combined with GST in the ERP tax module. After the new regulations, the ERP tax module carries forward the closing balance of the tax credit from the current to the new account code.
audit
ERP's tax module will help companies calculate tax returns for sales and purchasing data. Then review the amount before submitting the GST return. This saves the company accountant a lot of time and helps them when the daily volume of goods or services is huge.
Error-free tax return
In addition to supporting all forms of GST transactions, ERP's tax engine helps to easily identify and correct any errors, making it easy to file tax returns. In addition, it assists companies in exporting tax returns to the MS Excel system for uploading or later sharing with their chartered accountants or tax practitioners.
Data archiving and protection
Businesses can organize, archive and securely store their tax data in one place for many years. Therefore, they can access it at any time if needed. With access to cloud source points, tax accountants can work in real time without any manual data.
GST settlement
ERP is providing facilities to get all the information about GST regulations in a separate GST module. It enables companies or taxpayers to comply with GST when issuing transaction invoices. It automatically calculates and checks GST returns for each sales or purchase invoice based on GST's invoice format based on the business configuration.
All that is said and done, getting the ERP system ready for GST is a challenging job for the company. Their existing systems require major modifications, and they must know which modules affect which modules and which modules will be associated with the new tax rules.
Although a smooth transition to GST-compliant ERP is still a costly issue, especially for SMEs, some ERP companies are launching affordable GST-enabled ERP software to streamline their GST return application process. With it, they don't need to manually archive all returns, they just need to enter details of all sales and purchase invoices and automatically calculate GST returns.
Orignal From: Make your business GST compliant with ERP
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