By Sindhu Hariharan

Copyright thehindubusinessline

As companies race to implement GST 2.0 and are busy reconfiguring their financial systems, getting the tech ready looks to be the smaller challenge.

While tweaking the master rates and pricing lists are easier, ERP providers and tax consultants say that the real work is in practical matters such as reconciliation of credit notes, dealing with vendors who continue issuing invoices at the old rates, updating dealer list prices in one’s ERP and other such operational issues. Old-stock MRP compliance, slower upgradation by smaller vendors, and for sectors with large SKUs, it is likely to be more challenging, they add.

Future applicability

Tejas Goenka, Managing Director, Tally Solutions, said that with TallyPrime’s simple design, no product-level changes are required and users can update GST rates instantly, even scheduling them with a future applicability date. “We also proactively began guiding our users through blogs, explainers, and product resources. At this point, the bigger challenges are less about product readiness and more about clarifying domain-related questions from customers, for example, handling sales returns post September 22, accounting for purchases made before but received after the effective date, treatment of advances, or ITC-related doubts,” he added. For this, Tally is working on organizing CA-led sessions to provide guidance.

Sivaramakrishnan Iswaran, Global Head of Finance and Operations BU, Zoho, said that businesses using Zoho Books need not worry about updating tax rates being applied to transactions as the system will automatically update the rates. “This means that our customers do not need to take any action on their end,” he added. The compliance is built into the system and updates happen seamlessly in the background without disrupting our customers’ business operations, he added.

Hardik Gandhi, Partner, Deloitte India, said that a critical issue while implementing rate change is ensuring that the ERP system can accurately differentiate between historical and new transactions. “For instance, credit notes raised after 22nd September for supplies made prior to that date must reflect the old GST rates. This requires robust logic, validations, and controls within the ERP system to ensure correct tax treatment and compliance,” he added. In likelihood of delay in ERP implementation, Gandhi said they advise advise clients on fallback mechanisms including interim manual controls, clear documentation, and others.

Manoj Mishra, Partner and Tax Controversary Management Leader, Grant Thornton Bharat LLP, believes that while most companies have updated their ERP systems, the real test lies in execution. “The next few days are crucial for parallel runs, communication with supply chain partners, and ensuring downstream dealer networks are equally ready,” he said. We as consultants are not just updating the tech but also guiding in operational disruptions, he added.

For some consultants, it has been a hectic few weeks with teams deep inside client systems, cleaning and re-classifying product masters and running invoice simulations so that input-tax credits flow correctly on day one.

Focus areas

“Between now and September 22, we’re focused on the last mile: regression testing, supplier-invoice validation, and while clients are finalising MRPs and stickers. We’re also coaching finance and store teams and setting up contingency billing so operations don’t stop even if there’s a system hiccup,” Hithender Kumar G | Partner – Direct & ERP Enabled Compliance – S P R & Co. Chartered Accountants, said.

“Most companies have updated their ERP systems and tax engines to capture the revised GST rates,” Shivam Mehta, Executive Partner, Lakshmikumaran & Sridharan Attorneys, said. With the revised rates taking effect from September 22, companies are left with a very short window to reissue labels, update prices and coordinate with distributors and retailers, he added.

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Published on September 18, 2025