The introduction of the Goods and Services Tax (GST) has brought a plethora of changes in India’s tax regime. GST is supposed to simplify the trade and commerce in India, allowing supply chains to be integrated. It also offers greater transparency in various processes. The Goods and Services Tax Network (GSTN) is a common database that has brought together the whole system in which businesses function. It is also closely connected with the customs, banking channels, income tax, etc.
Post GST implementation, it is essential for businesses to look for reliable GST compliant ERP software in the market. This software is bound to reduce the overall tax calculation burden and save a business from heavy penalties. However, ERP software that is not GST compliant will not be able to calculate your tax liabilities and rebates such as input tax credit as per the new tax regime. Ignoring those aspects can cost you a lot and in some situations even kill your business.
Here are a few reasons why you need to choose the GST compliant ERP software:
- One of the major requirements for businesses is to sync their accounts with GSTN. Under the GST structure, tax is expected to be applicable at each stage of the supply chain and credit to be available to the respective buyers. Efficient GST compliant ERP software will automate and integrate the important processes of a business and reduce cases of duplications and errors.
- As per GST guidelines, every business owner must file GST return inclusive of purchases, sales, output GST, and input tax credit. Beyond updating the accounts and the IT parts, it is vital for all business owners to know their suppliers and clients properly. There might be a possibility that your supplier might not have paid their taxes. This can land you in huge trouble. This is why you must keep an eye on each and every level of your business so that you do not end up facing such problems.
- All the documents pertaining to warning notices, payments, registrations, refunds, and returns would go digital soon. Consequently, businesses are expected to adopt e-filing for GST compliance. This calls for equipping your business with automated software such as Tyre ERP that has the ability to address this challenge.
- Earlier, businesses relied on their chartered accountants for managing and paying taxes and many times they did not pay attention to being compliant to the latest tax rules. Now, the processes have evolved and are more crucial than ever. Business owners are now required to report to GSTN and hereafter tax authorities to know all the details. Else, they are bound to be penalised and face consequences.