GST, Payroll and AI get a major upgrade: What Indian businesses need to know

Odoo 20, the latest version of the business software platform, introduces expanded India-specific compliance features alongside artificial intelligence (AI) tools, workflow automation and updates to core business applications.Showcased at Odoo Experience 2026, the release covers functions including accounting, customer relationship management, inventory, manufacturing, e-commerce and human resources. The India-focused updates address requirements related to goods and services tax (GST), tax deducted at source (TDS), payroll and financial reporting.In accounting, Odoo 20 adds support for the GST Composition Scheme, including CMP-08 and GSTR-4 returns. It also introduces GST quarterly return workflows, a Bill of Entry process for imports and landed-cost management to account for customs duties in inventory valuation. Financial statements can be prepared in accordance with Schedule III, Division I of the Companies Act.Payroll changes include gratuity and Employees’ Provident Fund summary reports, employee-generated TDS declarations, flexible sandwich-leave calculations and improvements to full and final settlements. Businesses can also generate salary payment files for HDFC through individual payslips or payroll runs.AI is another focus of the release. Configured AI agents can search business records, retrieve information, create or update records subject to permissions, and assist with reporting. Support for the Model Context Protocol (MCP) also allows compatible external AI agents to interact with authorised business data and tools.The release comes as Odoo expects its 2026 billing revenue to reach approximately €900 million, a 45% increase, with a target of €1 billion in 2027.Odoo has also revised its pricing. The Custom plan rises 20% to ₹1,080 per user per month, while the Standard plan remains at ₹580. A Light User option, priced at ₹195 per employee per month in India, provides access to selected HR functions.The changes reflect growing demand for integrated business software that combines operational automation with country-specific regulatory requirements.