The slides provide information on the new GST Tax Regime,and how to implement GST in SAP. It provides information on the tax structure and the challenges organization will face during Implementation. For more information please visit www.salienterp.com or email at info@salienterp.com

1. GOODS & SERVICE TAX
The New Tax Regime

2. TOPICS
• What is GST
• System of Administration
• Benefits
• GST Structure
• Sample Calculation
• Impact
• Solution Approach & System Changes(SAP)
• Challenges

3. WHAT IS GST ?
• Stands for Goods & Service Tax
• One Unified tax for the whole nation
• Destination based Tax
• Credit available at every stage
• Substitution of all indirect taxes levied by State and
Centre
• Proposed system will take the form of Dual GST ,which is
concurrently charged by Centre as well as State.

4. SYSTEM OF ADMINISTRATION-GSTN NETWORK
• A common and shared IT infrastructure
• A G2B portal (Government to Business)
• All the core functions will take place here
(Registrations,Returns,Challans,Payments)
• System of Truth
• One stop shop for the tax payer
• Tax payers will need upload invoices by 10th of every
month

5. BENEFITS
• Easy Compliance – A single platform to view registrations ,returns
and payments for the tax payers
• Uniformity – A uniform tax structure all through out the supply chain
• Removal of Cascading
• Improved Competition
• Relief in overall tax burden
• Single and transparent tax proportionate to the value of goods &
services
• Better control
• Improved Tax Revenue
• Cross Utilization Allowed

6. STRUCTURE
CGST(Centre) SGST(State)
Central Excise Duty VAT/Sales Tax
Add. Excise Duty Entertainment tax
Service Tax Purchase tax
Add. Customs Duty (CVD) Luxury Tax
Special Additional Duty of
Customs
State Cesses & Surcharges
Surcharges & Cesses Octroi & Entry Tax
IGST=CGST + SGST on all inter-state transactions of supply of taxable
goods & services

7. CALCULATION EXAMPLE

8. CALCULATION EXAMPLE WITHIN THE SATE

9. CALCULATION EXAMPLE :INTERSTATE

10. IMPACT
• Existing Registrations
• Vendors (Vendor’s vendors)
• Customers (Customer’s Customer)
• Logistic Network
• Purchase Scenarios
• Sales Scenarios
• Utilization
• Inter-Company Transfers
• Various Reporting Requirements
• Infrastructure change in order to connect with GSTN Portal

11. SOLUTION APPROACH
• Need to get the registrations
for your plants in various states
• Gather registration data as
well as classification data for
vendors as well as customers
• Gather HSN codes/SAC codes
as well as classification data
for material /services
• List down all existing
purchasing processes and
Sales processes
• List down all the outputs used
in the current processes
• Need to access impact on the
third party applications used in
Procurement, Sales / Logistics
• Gather data about the
applicable GST rates
• Need to check the infrastructure
for connectivity between the
system and GSTN portal
• Assess Reporting requirements,
since the reporting needs to be
done at Item level.

12. PRE-REQUISITES
• SP Level as per SAP Note 1175384
• Default Tax Procedure should be
TAXINN
Other related SAP Notes:
• 2014164 –TAXINJ to TAXINN
• 2039117-Master Note
• 2167294 –Upload Tools
• 2252781 –FAQs on TAXINJ &
TAXINN
• 2194689 – IN:GST
• 2386062 – SAP ASP for GSTN Portal

13. SYSTEM CHANGES
• Master Data Changes
• Vendors –
 GSTN numbers to be captured (15 CHARS)-This
will be done under CIN tab ,in a new field “GSTN
Number". Incase of multiple registrations , the
partner function Goods Supplier (GS) can be
used.
 Vendor Classification- A new field under CIN tab
to classify vendors
• Customers –
 GSTN Numbers- A new field ,same as Vendor
Master
 Customer Classification – Will be done under tax
Classification
 A new partner function called GST Partner to
map multiple locations for customers (Ship to)
Material Master –
 Purchasing View – Tax Indicator to classify the
materials
 Control Code – To map the HSN numbers.
 Sales View- Tax Classification to be used to classify
the materials.
Service Master –
 Tax Tariff Code – Will be used to map the SAC codes.
 Tax Indicator – Classification of Services

14. SYSTEM CHANGES
• Tax Configuration
 New Conditions types to be mapped in the
existing procedure
 New Access Sequences
 Separate Transaction keys
• Account Determination
 Needs to be set for business place
 Separate Ledgers for the different tax
components per business place.

15. SYSTEM CHANGES
• Processes
 Local Purchase - GST needs to be
captured during goods receipts
 Subcontracting – Need to pay GST
while transferring the material to the
Vendor
 Services – Here the SAC codes need
to be reported at line item level.
Hence there will be a change
 Stock Transfers – GST impact needs
to captured during goods receipts in
the receiving plant.There will be
different Billing Type in VF01
 Imports – BCD + IGST
 Tobacco,Alocohol,Petroleum
excluded
 Zero Rating for Exports

16. SYSTEM CHANGES -REPORT
• GSTR1 – Outward supplies
made by tax payer , to be
reported by 10th of every
month
• GSTR2- Inward supplies
received by a tax payer , 15ht
of the month
• GSTR3 – Monthly return,20th of
the month

17. UTILIZATION
• New Transaction to be build for the GST utilization
• The system of truth will be the GSTN Portal ,and not SAP .
Credit of Can be utilized against
CGST CGST&SGST
SGST SGST & CGST
IGST IGST,SGST & CGST

18. SAP’S ROADMAP
Wave 1 : (SAP Notes and System Level Changes)
 30th Nov 2016 –Development will be completed
 9th Dec – Test Wave 1
 16th Dec – Release Wave 1
Wave 2 : ( Changes for GSTN Portal)
 3rd Feb 2017 –Development
 10th Feb 2017 – Test Wave 2
 17th Feb 2017 –Release Wave 2

19. CHALLENGES
• Connectivity between the ERP systems and GSTN Portal
• Understanding the working of GSTN Portal
• Cutover Data Strategy
• Change Management for the User community
• Need information on reverse charge for Service Tax in the GST Regime
• Cesses and Surcharges if any