Is your ERP really GST ready?

Anup Patel is a worried man. The manufacturer of electronic components had just received word from his chartered accountant (CA), Sanjog Jain that he would have to digitize his entire business operations to comply with the upcoming GST regime. Anup understands electronics. He knows capacitors from his resistors and thermistors. He also knows a good engineer from a mediocre one. But his idea of digitization is limited to the small amounts of money he transacts via Paytm.

Anup’s CA Sanjog has warned him three months ago as well about the upcoming GST regime. But Anup put it off thinking he had time. Everything has changed from the 1st of July, having to reconcile his accounts very differently from what he was used to doing.

Although last minute, Anup did his research and figured out that the best option for him would be to implement an ERP solution. He realized, having the right ERP in place would also ensure his GST transactions worries are easily handled. His staff was comfortable using the different software for different functions. He had separate software for accounting, statutory compliance, customer relationship management etc. These were mainly used to input data; they did not provide data access controls. Regular reconciliation needed to be done for Anup to get to know the exact state of operations in his business. But his staff had gotten used to their software and they questioned the need to change from the current software. Anup decided to first get his team onboard, on why deploying an ERP was the key to effectively manage the business as also take care of the impact of GST on the transactions. The solution, Anup decided, was to go for a simple and easy to use ERP.

The second problem Anup faced was selection of an ERP solution. There were so many vendors, all claiming to have the right solution for his business and all claiming to be GST ready. But Anup realized that some of them were way too expensive for him, while others were complicated or could not explain to him how his transactions could be GST compliant. Shifting to an ERP solution would transform almost every aspect of how his business was run.

In desperation Anup turned to Sanjog to help him arrive at the right decision. The CA prepared a 10 points checklist from a GST perspective for an ERP to handle.

  • Manage multiple branch accounting under a single GSTIN no. The ERP should have automated consolidations and filings across branches.
  • ERP should calculate the GST rates
  • ERP should book a GST invoice in 3 simple steps
    • a. Classify your customer and your billing branch as GST registered/Composite scheme/SEZ/Unregistered

      b. Attach your Product/Item codes to HSN codes

      c. Click to book your GST Invoice

  • Should have provisions to amend the GST rates in future accommodating upcoming tax changes
  • Ability to upload your Outward sales as GSTR1 with a single click
  • Intelligently figure out the “Place of Supply” in the GST regime while billing
  • Should be able to manage the old taxation data along with the current GST regime data.
  • Easily calculate the GST liability without connecting to the GSTN network
  • Ensure a seamless transition from old software to GST ready ERP
  • Guarantee data accuracy and strict controls on data management. This is critical as the GSTN network works on you filing your sale and your customer accepting it. Accurate data would ensure easy reconciliation between both the parties.

Sanjog’s instructions to Anup were. “You need an ERP solution that is simple, easy to use and is able to fulfil the points in the above checklist. The right ERP solution, will give you more time to focus on growing your business without worrying about the dynamic regulatory situation. Today, it is the GST, tomorrow it will be some other regulation. You need a vendor that can future-proof your business.”

If like Anup, you are on the lookout for a simple, easy to use GST ready ERP book a Free Demo and let us take care of the rest!

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