GST (Goods and Services Tax), introduced on July 1, 2017, is the biggest tax reform witnessed by independent India. Though this new tax claims to unify the Indian market, there are many complications within as well as implementation. To make your business ERP ready with GST aspects, this how-to guide will take you through the requirements and other aspects so that you become GST ready.
- Change of Business Processes
GST affects multiple departments as well as business processes. If the processes need significant revisions for purchase order, billing document, sub-contracting, vendor invoicing, goods receipt, purchase order, and any more.
- Revision of Master Data
Whether it is chart of accounts, customer masters, vendor master, or anything else, changes are needed to be done in the master data. For every registered customer as well as vendor, businesses need to maintain a GST registration number.
- Numbering of Document
One of the most important requirements of making ERP ready for today is the unique sequential numbering for invoices of outgoing GST.
- GSTIN Registration
If you have a company, your company needs to get GSTIN (GST Identification Number). This new number will subsume all other important numbers, including -
- Excise registration number
- Service tax registration
- VAT registration
The GSTIN number will suffice for all kinds of Goods and Services taxes, whether it is CGST, SGST or IGST. It must be kept in mind that companies need to have individual registration of each state.
- Procedure of Tax
For accommodating GST structure, procedures of tax are completely needed to be changed. Some of the changes that you have to include in the ERP include mandatory monthly tax returns, GST tax accounts, migration from TAXINJ to TAXINN, and many more.
Follow these procedures to get ready your business ERP solution with GST facility.
