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© KPIT Technologies Limited
Agenda
1/28/20162
1 Context
2 System Change Roadmap
3 Way Forward
4 Information
5 Key Takeaways
© KPIT Technologies Limited
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
© KPIT Technologies Limited
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
© KPIT Technologies Limited
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.
© KPIT Technologies Limited
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
© KPIT Technologies Limited
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
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
© KPIT Technologies Limited
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