Free Press Journal

ERP Software in your businesses environment : Does your ERP Software has GST Combat mode?

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Why to strangle your business by holding it aloof from advanced enterprise technology? Yes, today it has become a need of the hour for businesses to walk hand-in-hand with emerging technologies for staying safe the impacts of any disruptive changes and ERP software is one such tool that is successfully helping businesses achieve that. The much talked about GST implementation has become a reality now as the Goods and Service Tax, being a revolutionary and historic step in the Indian taxation system, is being heralded as the biggest tax reform in India. GST will add to the economic growth and bring simplicity in the way businesses operate by replacing existing Indirect taxes such as Excise, Value Added Tax (VAT), Service Tax, etc., into one taxation system. So to continue to function smoothly, businesses would require that their ERP solution/ accounting software be ready with GST.

Under previous taxation system, businesses used to do tax computations either manually or through some standalone software, but GST has changed this game completely now. And to be GST compliant businesses ought to adapt to advanced enterprise solutions, as the government GST tax system is a web-based one. Thus, businesses will have to automate their tax processes using a robust ERP software.


How do we come to know that our business require the ERP Software :

So now how do we select the ERP Software? Along with erp features like inventory management let’s see what are the other features we should look into for selecting an ERP Software which should be GST ready.

Criteria What ERP features your GST software must accommodate against these  criteria
Changes in the Chart of Accounts Value Added Tax (VAT) and Service Tax required separate account codes in the old tax structure. However, GST requires that these account codes get merged. The GST-ready finance & accounting software would have to accommodate the closing balance of tax credit to be carried forward to the new account codes, from the current account codes.
Re-engineering of the Tax Rule Engine The ‘Tax Rule Engine’ is a master repository containing all the tax rules including tax charge rates, tax compliance, tax jurisdiction and reporting. Here your ERP Software should provide you with ERP solution which have to provide a completely re-engineered tax Rule Engine, incorporating the new data.
Updating Master Data Information GST has completely revamped the tax structure. Under the new structure, tax rates will change with regard to the charge of tax, place of supply of goods and services and time of supply. With these changes, your GST-ready accounting software should have all updated master data information such as Inventory, Warehouse Information, Customer’s Bill To and Ship To Addresses, etc.
Installing new Reporting and Workflow systems With the new GST framework in place, all the existing workflow and reporting systems that cater to the earlier indirect tax regime will become redundant. The GST-ready ERP solution selected by you should have new robust workflow systems to effectively manage the consolidation of taxes and ensure timely submission.

Apart from the above GST compliances, enterprises will also benefit from a cloud-based ERP solution. So having a cloud-based ERP Software could also be added up as an criteria for buying decision. The bottom line here is that staying compliant will cost businesses less than staying non-compliant. And it’s high time for business owners to understand the imminent tax reform and equip their businesses to handle tax compliances. The science of thought behind automation for GST tax reform is sure to fetch long-term benefits and ERP systems are here to lend a helping hand in addressing all your GST compliance challenges. The most popular erp software, Tally.ERP 9 is a scalable ERP platform that is GST-ready and can help take your enterprise into the new era of taxation. Tally.ERP 9 provides you with real-time GST information validation, uploading, editing and generation of invoices as per GST guidelines, Alerts/notifications from GSTN portal and as well as Filing compliance’s including registration to GST, e-filing, e-payment of taxes and digital signatures. Tally.ERP 9 has always impressed its users when it comes to be real time GST ready as it closely follows the GST desk and brings everything in its product just packed and ready to roll.