The Goods and Services Tax (GST) has been the talk of the town since it was first introduced in 2011. This has been a much awaited move for the entire business fraternity and is being seen as the biggest economic reform since liberalization in 1991. Every business, big or small, transporter or manufacturer is eagerly waiting to experience the benefits the new tax regime proposes to bring to their business.
GST is essentially a single tax on the supply of goods and services which eliminates India’s complex multi-layered tax structure legacy which includes Sales Tax, Excise, Customs, CST, Octroi, etc. The new arrangement may seem simple and comprehensive on the front but can be tricky to adopt due to lack of trained staff and increased compliance. This is where an Enterprise Resource Planning (ERP) software can come to the rescue of business enterprises due to its proven ability to seamlessly automate taxation and help companies to comply with statutory requirements.
For decades, various ERP software have been taking care of the tax compliance for businesses. In this critical hour when the country’s taxation system makes a paradigm shift, businesses will rely heavily on ERP vendors to make their systems GST-Ready thereby enabling them to sail through this change.
ERP vendors on their part need to make necessary changes to their Tax Module to adapt to the requirements of the new system. Apart from the Tax Module, there are a number of other associated entities which may have to be re-engineered like reports, documentation, interfacing, order booking, etc. Some ERP vendors may resort to build the entire Tax Module afresh which may be an unforeseen cost. But this is the time they can encash the opportunity to stack themselves against the top ERP vendors offering a GST-Ready ERP Solution.
To conclude, adapting to the new tax regime will be a painstaking process for every stakeholder, be it ERP vendors or their customers. But implementing a GST-Ready ERP System is the best and most convenient manner for an organization to seamlessly embrace the new system without disrupting its essential processes.
About the author:
Harshit is a PGDM in Marketing and a B. Tech. in Information Technology. He started his carrier with Eastern Software Systems as a Marketing & Communications Executive and has over the years evolved into a seasoned marketing professional with expertise in Digital Marketing, Conventional Marketing and Social Media Marketing. Harshit loves cooking and is always eager to create unique culinary for his friends.