GST Support package preparedness Roadmap - KPIT · PDF fileYou need to have minimum Support...

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GST Support package

preparedness

Roadmap

© KPIT Technologies Limited

Agenda

1/28/20162

1 Context

2 System Change Roadmap

3 Way Forward

4 Information

5 Key Takeaways

© KPIT Technologies Limited3/9/20173

Context


Reason for Change : GST Introduction

1/28/20164

The Goods and Services Tax Bill or GST Bill, officially known as The Constitution (One Hundred and First Amendment)

Bill, 2014, proposed to be implemented in India from 1 April 2017.

"Goods and Services Tax" would be a comprehensive indirect tax on manufacture, sale and consumption of goods and

services throughout India, to replace taxes levied by the central and state governments. Goods and Services Tax would be

levied and collected at each stage of sale or purchase of goods or services based on the input tax credit method. This

method allows GST-registered businesses to claim tax credit to the value of GST they paid on purchase of goods or services

as part of their normal commercial activity. Taxable goods and services are not distinguished from one another and are

taxed at a single rate in a supply chain till the goods or services reach the consumer. Administrative responsibility would

generally rest with a single authority to levy tax on goods and services. Exports would be zero-rated and imports would be

levied the same taxes as domestic goods and services adhering to the destination principle.

The introduction of Goods and Services Tax (GST) would be a significant step in the reform of indirect taxation in India.

Amalgamating several Central and State taxes into a single tax would mitigate cascading or double taxation, facilitating a

common national market. The simplicity of the tax should lead to easier administration and enforcement. From the

consumer point of view, the biggest advantage would be in terms of a reduction in the overall tax burden on goods, which

is currently estimated at 25%-30%, free movement of goods from one state to another without stopping at state borders

for hours for payment of state tax or entry tax and reduction in paperwork to a large extent.

Source : Wikipedia


Sequence - Compliance Change delivery

1/28/20165

You need to have minimum Support Pack level for SAP_APPL software component to get

subsequent legal change support for CIN-Logistics (All Indirect taxes).

Activity Time Line

Model GST law released

GST adherence to start 1st July 2017

Final working law to be released by Government

SAP Notes to be released within 3 months after the final requirements of the law are frozen


System Change Roadmap


Change Delivery: Customer SAP Roadmap towards adherence

1/28/20167

Customer Preparation

Go through the supportability matrix

Install the requisite EHP

Install the requisite Support package

Once the SAP note is released install requisite notes

Follow the manual correction parts

Customize according to your business process.


Adherence Preparation: Customer specific steps towards compliance

1/28/20168

Cross system impact analysis (Change impact on

interfaced systems)

EHP installation impact analysis (Upgrade Change

Impact Analysis)

SAP Preparatory note adherence (Side effect

analysis)

Adjust SPAU and SPDD for installation of EHP and

SPs

Changes in reporting and printing


Way Forward


SAP Release Requirement Summary

1/28/201610

You are required to be at the following minimum support pack level of software component

SAP_APPL, to obtain support for any subsequent legal change, for Country version India(CIN).

SAP_APPL Release Support Pack

SAP ERP 6.0 (600) SP 26

EHP2 FOR SAP ERP 6.0 (602) SP 16





EHP6 FOR SAP ERP 6.0 for HANA (616- SAP HANA) SP 08

EHP7 FOR SAP ERP 6.0(617) SP 07

EHP8 FOR SAP ERP 6.0(618) SP 02

SAP S/4HANA ON-PREMISE 1511 SP 02


Information


Challenges

1/28/201612

The Mandatory Prerequisites to consume the GST solution provided by SAP are

Minimum support pack that the customer should be on is provided in the following note -

https://launchpad.support.sap.com/#/notes/1175384

TAXINN is the default tax procedure. Please refer to the following FAQ note related to the

migration of the tax procedure - https://launchpad.support.sap.com/#/notes/2252781




Key Takeaways


Key Takeaways & Project Roadmap

1/28/201614


We offer a high quality of

End-to-end SAP servicesto cover

every aspect of your business

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