This document discusses SAP's preparedness for implementing Goods and Services Tax (GST) in India beginning April 2017. It outlines SAP's methodology for ensuring customer systems are ready for GST, including upgrading to required software versions and support packs and implementing notes SAP will release. The document provides timelines and details SAP and customer responsibilities to facilitate a smooth transition to GST-compliant systems.

1. SAP GST System Preparedness
Ankan Majumdar, (Support Architect)
SAP Digital Business Services - West
Customer

2. GST Support package preparedness
Roadmap
Customer

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Agenda
Context
 Reason for Change
 Sequence
System Change Roadmap
 SAP’s readiness methodology
 Implementation – Adherence Preparation
Way Forward
 SAP’s release strategy
Information
 SAP Notes
 Safeguarding engagement from SAP
Key Takeaways

4. Context

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Reason for Change : GST Introduction
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[1] from 1 April 2017.[2][3]
"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.[4] 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%,[5] 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

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Sequence
Compliance Change delivery
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 April 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

7. System Change Roadmap

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Change Delivery
Customer SAP Roadmap towards adherence
Customer Preparation
1. Go through the supportability matrix.
2. Install the requisite EHP.
3. Install the requisite Support package.
4. Once the SAP note is released install
requisite notes.
5. Follow the manual correction parts.
6. Customize according to your business
process.

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Adherence Preparation
Customer specific steps towards compliance
• 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.

10. Way Forward

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SAP Release Requirement Summary
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
EHP3 FOR SAP ERP 6.0 (603) SP 15
EHP4 FOR SAP ERP 6.0 (604) SP 16
EHP5 FOR SAP ERP 6.0 (605) SP 13
EHP6 FOR SAP ERP 6.0 (606) SP 14
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

12. Information

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Mandatory Items
The Mandatory Prerequisites to consume the GST solution
provided by SAP are
1. Minimum support pack that the customer should be on
is provided in the following note -
https://launchpad.support.sap.com/#/notes/1175384
2. 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

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SAP Compliance Engagement Support
In case you need SAP support for
1. GST System Compliance Engagement – SAP , Tailored Engagement to
safeguard Technical system compliance
The above is a separately charged engagements, contact your respective Client
Partner for detailed information or reach out to the below for further details
1. Barkha Menghani barkha.menghani@sap.com

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Key Takeaways & Project Roadmap
•Upgrade methodology
•Upgrade Impact
System
Checks
System
Checks
•Inclusion of GST
patches
•SPAU SPDD
Upgrade
Execution
Upgrade
Execution •SAP Releases GST
Notes
•Implement note
(Automated corrections
and Manual
Corrections
GST ReleaseGST Release
•Business & customer
specific activities
•Implement changes to
system
GST
Implementation
GST
Implementation
SAP Safeguarding services for GST Preparedness

16. Live Questions?

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Thank you

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