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Currently, in India, almost everyone is talking about GST (Goods and Service Tax). Today, this historic and revolutionary action in the taxation system of India is trending highly. People are considering it as one of the biggest reform in the Indian taxation system. It would replace all the Indirect taxes like Service Tax, VAT (Value Added Tax), Excise etc. into a single taxation system. Thus, this would not only help to boost the overall economic growth but would make the business operations smoother and simpler. However, to run the businesses successfully now in India, you have to make the ERP solution of your business ready for this GST. For this, your ERP solution must contain the below-mentioned modules and functions.
#1 Revamp Your ‘Tax Rule Engine’
This ‘Tax Rule Engine’ is the main archive that has every detail about tax rules that includes tax compliance, rates of tax charge, reporting along with tax jurisdiction. When you make your ERP solution GST ready, it would re-engineer this entire ‘Tax Rule Engine’ and would merge new data and information making your business functions enhanced.
#2 Update the ‘Chart of Accounts’
In the older version of the tax structure, Service Tax and VAT (Value Added Service) required different account codes. After GST is coming into the limelight, all these different codes won’t exist. Merging all these codes is one of the main targets of incorporating this Goods and Service Tax. In the case of GST ready software of finance and accounting, it would need to carry forward the tax credit closing balance from the existing account codes to the fresh account codes.
#3 Install New Workflow and Reporting Systems
Once you are incorporating the latest GST framework in your workplace or in business, all the existing reporting systems and the workflow which were working fine with the earlier version of the indirect tax system would become obsolete. You need to install new workflow along with reporting systems in your business to cope up with the newly introduced system and to effortlessly manage tax consolidation. You need to make sure the timely submission as well.
#4 Update the Master Data Information
This newly introduced GST has an entirely new structure. According to this latest tax structure, the tax rates would change depending on the tax charges, time of the supply of goods and services along with the place of supplying. Hence, it is easily understandable that you need to update the master data information that includes several crucial aspects such as Warehouse Information, Inventory, Shipping Addresses and Billing Addresses of customers and much more.
An effective ERP solution that is GST ready would help you to get validation of GST information in real-time, would give you notifications generated from the GSTN portal. Moreover, it would cater to upload, generate and to edit the invoices following proper GST guidelines.
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