The proposed Goods & Services Tax (GST), recently cleared for implementation in 2017 is one indirect tax for the whole nation, which will make India one unified market and will have a significant impact on Indian business as well as the consumers. GST is expected to be implemented in India from 1st July 2017 onwards.

GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.

Under the GST system, updation / reconciliation and payment by the seller on the GST network system would be required before the buyer can avail input–tax credit. GST is completely system driven with the heart being the GST network or GSTN. All businesses will have to update their returns on the GSTN through the ASP / GSP partner companies. The need for a robust ERP has never been greater for Indian businesses.

Indian enterprises have 3 options to enable their businesses for GST with SAP depending on their current state.
1. Enterprises not using SAP can implement a greenfield SAP S/4HANA implementation which will GST enable their business processes and reporting.
2. Enterprises using SAP ERP but with a much older setup using TAXINJ tax procedure can migrate to the newer TAXINN tax procedure which will be GST compliant
3. Enterprises using SAP ERP with the newer TAXINN tax procedure can make their processes GST compliant
  • 1.GST Starter Pack On SAP
  • 2.Migrate SAP System(TAXINJ) to GST
  • 3.Migrate SAP System(TAXINN) to GST