The new GST returns may impel companies to modify their ERP

The new GST returns to be enforced from April 2020 which makes it binding to provide more details that may compel companies to modify their ERP systems.

The new systems would require a ton of details including purchases from unregistered dealers says the tax experts and Chartered Accountants (CAs).

What is ERP?


Enterprise Resource Planning (ERP) is a software that helps the companies manage and supervise everything in the federation such as technology, finance, and HR functions. It is used by companies to accommodate different activities of the organization under a single unified system.

What changes under the new system?

“Besides, bill of entry-wise import details and bill of entry-wise purchases from SEZs (special economic zones) would be required. As of now, there is one-way traffic. Presently, suppliers upload these data, but from April 2020, recipients will also have to upload all these data”, said Tax Connect Advisory Services LLP partner Vivek Jalan.

In addition to this, electronic billing or e-invoicing of Business to Business (B2B) dealings would also come into the scene from January 2020!


This would necessitate amendments in the existing ERP systems of the companies to ensure that the tax authorities have a track record of each and every business invoice. This method is certainly aimed at restricting escape from taxes.

Amit Bhagat, a partner at the Dhruva Advisors said that considering the details that would be demanded by the new system, companies need not change their ERP. It won’t be something that would entail a complete reconstruction, but a few changes would definitely be required after e-invoicing comes into effect and more details are required in GST returns from next year.

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