Why Businesses Must go after a GST ready ERP System?
With GST on the horizon, some structural changes are being scripted for India’s tax structure. Underestimating the gravity of such changes and taking the arrival of GST as a run-of-the-mill event, can backfire in your business in a big way. The implementation of GST will require some serious homework, considering the paradigm shift in the way returns and tax computation will be affected.
But first and foremost, business owners need to get over their laid back approach regarding GST and take progressive steps instead. They must ponder over the significance of GST Ready ERP solutions that will surely help their business sail through the initial hiccups, especially during the transition phase. The crucial point for them to consider is that GST won’t just add a Tax rate to their existing software, but will have an overall impact on their:
- IT Infrastructure (due to changes like Location of depots, Sales offices etc)
- Business processes
- Existing Software
- Statutory Compliances
As the government aims to make the GST compliances and processing completely web-based, it doesn’t require rocket science to figure out the relevance of a GST ready ERP software, in catering to the newest form of tax imposition.
Businesses must contemplate the following reasons for opting a GST ready ERP:
- A better handling of documents will be required
With GST tax regime settling in, all relevant documents concerning payments, receipts, warning notices, reconciliations, etc. will be digitized. To comply with GST, e-filing will become a prerequisite for businesses, especially in the backdrop of a new matching system under the GST regime. Only a GST ready ERP software which can interact well with GSTN will let them achieve such standards of automation and ease.
- Everything will become systematic
The reason GST has made so many headlines and continues to create ripples is that it will make a hurdle-free movement of goods and services possible on a pan India basis. Not only this, the overall tax expenses will come down for sure. To complement such a systemic approach, an automated system will have to be put into place. Standardization will become crucial once the GST regime will be up and running. Only a GST ready ERP software will connect all the dots and let businesses achieve it.
- The compliance window will reduce drastically
The compliances under the GST regime will have to be filed/reconciled in a much shorter period as opposed to the existing compliances time periods on Service Tax, Excise, CST, etc. It won’t be a walk in the park for manufacturers to comply with the HSN item code based, multi-state and destination based tax regulations under GST, and there will be serious management issues for organizations if they are using an automated software. Having an ERP software under their wings will make all such tasks much more hassle-free as opposed to a likely mess that they will be in, in its absence.
- Digitization will be the norm
Precision is the need of the hour for businesses which involve a continuous tracking of inventory, purchase, sales, etc. Manually driven mechanisms leave a scope for data inconsistency, and an ERP software is a natural substitute. Not only will it automate and integrate the key processes of a business, the occurrences of duplication and associated errors will be eliminated.