ERP for trading and distribution businesses in India: what to require
A trading or distribution business needs stock tracked by the unit it picks and ships, reserved against each customer order so nothing is sold twice, moved by scanning across stores, purchase documents read in without retyping, and invoices that reach Tally or the GST books automatically. Above ₹5 crore, e-invoices; at ₹10 crore and above, the 30-day limit and TDS on large purchases.
Pujan Motiwala · Statutory rules checked against the official texts on
Start with these
- Stock by the unit you ship: a reel, a box, a carton, each with its own label, not only a total. (requirement)
- Reserved against each order line, so a reserved unit can't go to another customer without a manager's override. (requirement)
- Moved by scanning, in, out and between stores, including a partner's. (requirement)
- Staff entries approved before they change stock. (requirement)
- Purchase documents read by AI and checked by a person: invoices, freight bills, bills of entry, bank statements. (requirement)
- Every supplier bill matched to its order and what was received. (requirement)
- Invoices into Tally automatically, each checked against Tally's own data, if Tally stays as the books. (requirement)
- Customers follow their own orders on a portal that never shows stock or other customers. (requirement)
The rules your turnover brings in
- Above ₹5 crore: e-invoices; at ₹10 crore and above: reported within 30 days. (e-invoice)
- As a buyer with turnover above ₹10 crore: TDS on purchases from a seller beyond ₹50 lakh in the year. (TDS on purchases)
- Goods moving above ₹50,000: e-way bills. (e-way bill)
All of them, quoted from the official text: compliance requirements.
What this looks like in a running system
At LS Technologies, an electronics-component importer and trader, each reel carries its own QR label; 5,256 live reels moved to a two-store model with none lost. Reels are reserved per customer PO line, oldest first. Five document types, bills of entry included, are read by AI at 88–95% zero-correction, each approved by a person, and approved invoices post into TallyPrime as vouchers within 30 seconds. See software for electronics-component traders, or scan reels yourself in the trading demo.
Build your list
The requirements builder with "Trading and distribution" selected gives the full list for your turnover and whether Tally stays.
If the system will have an AI assistant, what it should answer for this kind of business lists the questions, with what Ohm AI answers today.
Answer five questions about your business and get the requirements that apply to it, ready to send to vendors.
Most lines here can be tried today on a live system: manufacturing · trading · interiors · how Ahrom Labs builds them
Official sources
- Companies (Accounts) Amendment Rules, 2021 (G.S.R. 205(E), 24 March 2021). Ministry of Corporate Affairs, Gazette of India, October 25, 2026.
- Companies (Accounts) Second Amendment Rules, 2022 (G.S.R. 235(E), 31 March 2022). Ministry of Corporate Affairs, Gazette of India, October 25, 2026.
- Notification No. 10/2023–Central Tax (10 May 2023), amending Notification No. 13/2020–Central Tax. Central Board of Indirect Taxes and Customs (copy hosted by the GST Council), October 25, 2026.
- Advisory: Time limit for reporting e-invoice on the IRP portal, lowering of threshold to AATO 10 crores and above (5 Nov 2024). GSTN (Goods and Services Tax Network), October 25, 2026.
- Notification No. 12/2018–Central Tax (7 March 2018), substituting rule 138 of the CGST Rules, 2017. Central Board of Indirect Taxes and Customs (copy hosted by the GST Council), October 25, 2026.
- Micro, Small and Medium Enterprises Development Act, 2006, sections 15 and 16. Gazette of India (copy hosted by the Ministry of MSME), October 25, 2026.
- Income-tax Act, 2025 (30 of 2025), in force from 1 April 2026. Ministry of Law and Justice, Gazette of India, October 25, 2026.
- Digital Personal Data Protection Act, 2023, section 8. Ministry of Law and Justice, Gazette of India, October 25, 2026.
- Digital Personal Data Protection Rules, 2025 (G.S.R. 846(E), 13 November 2025). Ministry of Electronics and Information Technology, Gazette of India, October 25, 2026.
What this page is not
A guide written by Ahrom Labs from the systems it runs; not legal or tax advice. Statutory lines quote the official text, and the text governs wherever this page differs from it; how a rule applies to your business is a question for your CA. Last updated .
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