The Goods and Services Tax (GST) will be implemented across India from the 1st July, 2017 and it is considered as the revolutionary indirect tax reform by the experts. The main aim for the bill is to eliminate different indirect taxes like VAT, service tax, excise tax and many more. It is a promising tax reform as it will be the single combined tax system in India. However, one should not forget that the GST implementation may challenge the businesses in a way they manage their businesses.
The biggest advantage of the GST tax regime for businesses is the reduction of tax burdens and lower operating costs. They can make their supply chain more productive by allowing tax credits to be operated crossly. However, the biggest challenge the businesses will have is to implement GST in their existing ERP system and let me tell you, it is not as simple as you think. The ERP system is the backbone of any business as all the tax related processes are well-defined and well-designed in it. Now, businesses have to amend and implement the new GST tax system to the existing ERP system. It is like the updating your computer software with the upgraded version and it is not as simple as it seems.
Well, there are multiple impacts of GST for ERP Systems and it requires appropriate planning and implementation to ensure that your current ERP system is amended and modified as per the new GST bill. The complete ERP system needs to be reviewed and upgraded to accommodate the GST. The process may take time as new amendments and updates are announced by the Government of India and it will continue for some time. So, even if you have updated your ERP system, you have to accommodate again when a new GST bill update comes. There are so many tax processes, both inward and outward, need to be reviewed and affiliated in the ERP system for new GST requirements. Also, in the proposed GST bill, the central GST and State GST might be charged independently. This must be taken care of in the updated ERP system. Processes like tax utilization, interstate stock transfers and subcontracting must be setup as per the details of GST bill. Also, one need to amend tax calculation challenges to a great extent as per the new GST bill taxation requirements. One needs to be very careful while doing this as there are possibilities that in future, new tax updates and reforms are going to come frequently. Your GST ready ERP system should be adaptable to make further amendments in the future. There are many master data sheets you might to update or replace as per the new GST guidelines. Some of the master sheets are material master, vendor master, price masters and many more. The transactional updates will be the most difficult part of the amendment in the ERP system. Suppose, you have purchased goods before the GST implementation and sold after GST implementation. In this case, it is imperative that the amendments and updates are monitored closely.
Corporate Munim, one of the most advanced ERP software is a GST compliant and this is what you are looking for now, isn’t it? Corporate Munim is an encompassing ERP software that has clients in more than 15 countries and has given a paradigm shift to the businesses in a way they conduct and manage their business processes. This GST ready ERP software is your answer to the all worries mentioned above. All the key business processes are well- defined and well-aligned keeping in the mind the new GST bill. Our team of experts in the domains of accounting, taxation and software developments have made it possible by working on this GST enabled ERP module that is your best friend now. All the processes are GST enabled and all you need to do is to just go for our GST Ready ERP Implementation. From taxation requirements to domestic sales, supply management, storage of inventories, export reports, inter-state and intrastate sales and purchases, payment modes and invoices, all these processes are compliance to the details of GST bill. It is a comprehensive solution for the uninterrupted functioning of all the business processes and all you need to do is to contact us for our exceptional and unparalleled GST Ready ERP Implementation. Kindly contact us now and our representative would love to communicate with you about your business requirements.