Given the enactment of four central GST Bills [i.e. Central GST (CGST), Integrated GST (IGST), Union Territory GST (UTGST) and the bill to Compensate the States] on 12 April 2017, and with the clear road map being laid down for passage of State GST (SGST) laws in the respective State assemblies, the Government of India seems to be on course to implement GST with effect from 1 July 2017. Till date, eight states have passed the SGST law, while other States are expected to do it by end of May 2017.
GST: AREAS OF IMPACT
Master Data Maintenance
Tax Configuration & Computation
GST tax posting
GST tax posting
Tax registration (GSTIN: GST Identification Number)
Single registration for CGST, SGST and IGST. Individual registration to be obtained in each state of business establishment. PAN based registration number – Up to 15 characters in length Multiple business places must be created per the region of operation. The relevant plants must be assigned to their corresponding business places i.e. region wise association. A new field will be provided to store the GSTIN of the business.
Business Partner Tax Data:
Since in GST, only Sales data needs to be uploaded in GSTN Central Portal and Purchase Data will be taken form the Register from whom the Purchase was made, we need to update GST Reg No of all the customers and vendors in their respective SAP Masters.
GST Tax Accounts: Separate tax A/P and A/R accumulation will be required at GST registration (Business Place) level To be defined for CGST, SGST and IGST separately
TAX CONFIGURATION & COMPUTING
Unique sequential numbering for outgoing GST invoices
Criteria for legal numbering may be specified by Government
Logic for having New Document Number Separate tax A/P and A/R accumulation will be required at GST registration (Business Place) level To be defined for CGST, SGST and IGST separately
BUSINESS PROCESS LOCALIZATION
GST TAX POSTING
UTILIZATION OF INPUT TAX CREDIT
Utilization of Input Tax Credit (ITC) would be as under.
Goods and Services tax (GST) has been identified as one of most important tax reform post-independence. It is a tax trigger, which will lead to business transformation for the industry.
Place of taxation