GST - ERP

3 things on your current ERP ahead of GST rollout

The soon to be implemented Goods and Services Tax is being hailed not just as a tax reform, but a complete transformation of how businesses are carried out in India. GST will completely change the way tax computations were done by organisations so far (either through a standalone software or manually in the case of smaller businesses). With the completely digitised platform that GST is, businesses are left with no choice but adopt enterprise solutions that are highly evolved and automated.

Here are a few parameters for you to assess whether your current ERP is GST ready: 

  1. Overhaul of tax procedures

Under the new GST rules, you will now need to file monthly returns mandatorily. Further GST has been clearly defined as a consumption based tax and needs to be received in the state that the goods are consumed rather than the state that manufactures them. Therefore, the GST has been divided into three categories.

The GST that will be levied by the Centre on the intra state supply of goods and services will be called Central GST or CGST, that to be levied by the state will be called state GST SGST and the GST to be levied on the interstate supply of goods and services will be called Integrated GST or IGST. For companies operating in multiple locations, registration will be required for each state that they are operational in. Your software solution must be able to make the distinction between the categories of GST and register all the important information digitally. An efficient ERP system will not only help you meet the regulatory requirements, it will also help you maintain financial records accurately. 

  1. Business processes must be integrated and automated

With the rollout of the GST, nearly all business processes beginning from purchase and sales order, vendor invoice, receipt of goods, inventory management and subcontracting will have to be synced with each other. An equipped ERP system online must be able to carry out these functions efficiently and maintain a proper database to help validate claims at a later date. Your ERP software must facilitate integration and automation of these processes and establish a proper tracking system to avoid discrepancies. 

  1. Master data changes and document management

GST compliance requires changes to various master data such as vendor and customer masters and chart of accounts. Not only do you need to have a GST registration number for every vendor and customer all other documents of payments, refunds, warning notices and the likes must go digital. Keeping track of all of these requirements manually is virtually impossible. What your business needs at this time, therefore, is an automation software in an ERP solution that makes this task simple and hassle free.

Bottomline

The rollout of GST is aimed at bringing about more transparency in taxation norms that would ultimately bring about a positive change in the economy. However, the rollout of GST means enhanced tax compliance obligations. To absorb the multitude of changes as stated above in the existing ERP system would be a tall task.

The need of the hour for businesses irrespective of size or industry is set in place an appropriate ERP system that is equipped to handle the changes and make the transition to GST compliance a smooth and hassle free experience. At Exact, we have designed automated GSP solutions that will not only make GST compliance a breeze for you but also fetch you benefits in the long run. To know more about the best in class GSP solution get in touch with us at Exact on www.exactgst.com

To know more visit   www.exactgst.com

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