itelligence GST implementation India is slated to adopt GST from Apr 1, 2017. Hence, businesses need to be technologically-ready GST is a comprehensive indirect tax levied on Sale, Manufacture and Consumption of Goods and Services at the National level. GST would apply to all goods other than crude Petroleum, Motor spirit, Diesel, Aviation Turbine fuel and Natural gas. GST would apply to all services barring a few to be specified Export and Direct taxes like Income Tax, Corporate Tax, Capital gains tax will not be affected by GST. Imports will be subject to GST, but exports will be GST-exempt Where the output is GST exempt, the GST paid on the input will be a cost to the business

1. We make the most of SAP® solutions !
GST Implementation in India SAP

2. What we know so far about GST?
 India is slated to adopt GST from Apr 1, 2017. Hence, businesses need to be technologically-
ready
 GST is a comprehensive indirect tax levied on Sale, Manufacture and Consumption of Goods and
Services at the National level.
 GST would apply to all goods other than crude Petroleum, Motor spirit, Diesel, Aviation Turbine
fuel and Natural gas.
 GST would apply to all services barring a few to be specified
 Export and Direct taxes like Income Tax, Corporate Tax, Capital gains tax will not be affected by
GST.
 Imports will be subject to GST, but exports will be GST-exempt
 Where the output is GST exempt, the GST paid on the input will be a cost to the business
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3. What we know so far about GST? (2)
 GST in India is slated to have the following components:
 Central Goods and Services Tax (CGST) – Levied by Centre
 State Goods and Services Tax (SGST) – Levied by State
 Integrated Goods and Service Tax ( IGST) - Levied by Central Government on Inter-state supply of Goods
and Services
 GST would apply to all services barring a few to be specified
 Export and Direct taxes like Income Tax, Corporate Tax, Capital gains tax will not be affected by
GST.
 Imports will be subject to GST, but exports will be GST-exempt
 Where the output is GST exempt, the GST paid on the input will be a cost to the business
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4. Registration
 The following existing registrations will subsume into GSTIN (GST Identification Number):
 Excise registration for Plant / Depots
 Service Tax registration
 VAT registration
 There will be single registration for CGST, SGST & IGST
 However, individual registration is expected to be obtained in each state of establishment
 The GSTIN is expected to be 15 character long, and would include the existing PAN Number
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5. Possible Scenarios in GST
 Intra-State transactions: Seller collects both CGST and SGST from the Buyer and deposit CGST to the
Central Govt. and SGST to the State Govt.
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6. Possible Scenarios in GST (2)
 Inter-State transactions: The Centre would levy and collect the Integrated Goods and Services Tax (IGST) on
all inter-State supplies of goods and services (and on imports too)
 The inter-State seller would pay IGST on the sale of his goods to the Central Government after adjusting credit
of IGST, CGST and SGST on his purchases
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7. Possible Scenarios in GST (3)
 Inter-State sale and Re-Sale
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8. Utilization of GST
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O/P - IGST O/P - CGST O/P - SGST Remarks
I/P - IGST In the same order
I/P - CGST
I/P - SGST
 GST paid on the inputs can be offset against the GST payable on output, in the manner and
sequence (if applicable), stated here-in

9.  Common return for Centre and State Government
 There are eight forms provided for in the GST business processes for filing returns.
 Most of the tax payers are expected to be using only four forms
 Example: return for supplies, return for purchases, monthly returns and annual return
 Small taxpayers: Small taxpayers who have opted composition scheme shall have to file
return on quarterly basis.
 Filing of returns shall be completely online.
Returns filing procedures under GST

10.  Any tax liability, after offsetting the input GST, can be paid in one of the following ways
 Electronically (Online)
 Across the bank counter
Proposed payment procedures

11. Proposed Approach
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Steps Details
Technical Assessment
1 SAP System version must be ECC 6.0 (If not, upgrade to ECC 6.0)
2 SP level as per Note 1175384 (If not, apply the relevant SP)
3 TAX Procedure TAXINN must be used (If not, migrate to TAXINN)
GST Impact Assessment & way forward
1 Understand how GST impacts the business and assess the capability of existing systems to cater
for GST
2 Identify a GST implementation strategy and create a project team to manage implementation
3 Undertake an initial review and determine a plan / timeline for implementation
4 Identify contractual arrangements that need action (“prices inclusive or exclusive of GST” clause)
5 Identify the various business transactions including intra / inter state, inter company, sub-
contracting transactions
6 Where customers are consumers, consider making relevant changes to the existing POS systems
7 Get key resources trained and appoint a GST champion in your organization

12. What the businesses should do?
 Key conversations are around % rates, Centre Vs State Challenges, Implementation date, etc. But
they should, ideally, be around Systems readiness, Business awareness, Eco-system readiness, etc.
 Partner with Customers and Vendors
 Close working relationships with business partners
 Ensure your customers are GST-registered
 Ensure your vendors and vendors’ vendor are GST-registered too
 See if existing contracts need to be restructured
 Plan the pipeline during cutover, blackouts
 Rewire Accounting and Reporting processes
 Rewriting the systems to capture taxes and credits
 Changes to inventory valuation
 B/S Accounting of taxes
 Migration of open balances and orders
 Rewrite Business processes
 Business processes and controls to be re-written
Traditional P2P and O2C process will become Procure-2-Credit and Order-2-Credit
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13. Changes to be carried out in SAP
 Organization Set-up: Create Business Place and assign to Plants
 Master Data Set-up: Vendor Masters, Customer Masters, Material & Service Masters
 Tax and Pricing changes: Adjustments in Tax Procedures and Pricing Procedures
 RICEFs: Forms, Layouts, Modifications to EDIs and Upload programs
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14. Itelloigence India Software Solutions Pvt. Ltd.
Email : sales.india@itelligencegroup.com
We make the most of SAP® solutions!
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