GST Functionality 2017-06-20T10:59:03+00:00

GST (Goods & Services Tax)

GST is a new way of handling indirect taxation in India. GST replaces some existing tax regimes providing benefits such as:

Reduced tax complexity

A simplified taxation system with fewer variables

Greater tax transparency

A reduced administrative burden

Unified taxation for the country and individual states

Economic and employment benefits

Key Functions

  • Easy generation of Invoice as per GST Guidelines and Invoice Format
  • Facilitates filing of all type of dealer returns facility
  • SAP B1’s GST module automatically debits GST payments and provides warnings in case of insufficient credit balance
  • Offers platform for Payment of Taxes as per liable GST rates*
  • Reconciliation with GST Portal and other official GST Links
  • Handles Job-In and Job-Out facility as per GST norms
  • Effective & consistent data back-up prior to upgrade
  • Convenient & intuitive user interface
  • Supports multiple Branches of an organisation (offered for release after version 9.2 PL07)
  • Provides latest information about total Input Tax Credits (ITC) availed and utilized until now
  • Handles GST & ITC on capital goods and import material
  • Furnishes detailed information on GST paid simply at the click of a button
  • Hassle free and spontaneous preparation of monthly/quarterly/yearly returns

* Subject to the changes as the latest annexure of the GST law.

Impacted Processes/Functions/Departments

Procurement to Pay (P2P), Manufacturing

Impact Sub-areas

  • Withdrawals of area based incentives impacting cost of sourcing
  • Consolidation of the Warehousing, Logistics and Distribution facilities
  • Renegotiation of the transportation and logistics contracts
  • Transition of the key suppliers and strategic vendors
  • Implications of imports of key ingredients and supplies to vendors
  • Stock transfers between suppliers
  • Tolling and sub-contracting arrangements
  • Procurement of inputs exempt from taxes/inputs out of the GST regime (E.g. certain type of fuels and petroleum products)
  • Duty free movement of goods

Key Imperatives

  • Re-calibrated supply chain design and identification of opportunities for enhancing supply chain efficiencies
  • Review of the implications of area based incentives on end to end supply chain
  • Re-alignment of the procurement function to new taxation regime
  • Review the volume and value of interstate movement of the key inputs
  • Build adequate flexibility in the overall supply chain
  • Plan for management of non-sale transactions (free supplies, trials etc.)
  • Evaluate manufacturing facilities, C&F agents, stockists and distributors, depots and retail point arrangements

SAP Business One S/4 HANA Solutions

  • SAP Business Planning add-on on SAP S/4HANA
  • SAP Predictive Analytics
  • SAP Profitability and Cost Management
  • SAP Net Margin Analysis on SAP S/4HANA
  • SAP GRC – Access Control, Process Control

Order to Cash (O2C)

Impact Sub-areas

  • Pricing of the products especially considering concern related to continuity of exemption for certain life-saving drugs and APIs
  • GST on transaction value instead of MRP reduced by abatement
  • Pricing arrangements clearing and forwarding Partners/Distributors/Dealers
  • Withdrawals of area based incentives impacting the pricing of key products
  • Re-modelling of the dealer and distributor commissions
  • Review of Institutional (B2B) contracts/arrangements
  • Co-marketing/product bundling arrangements
  • Taxability of free supplies, assistance programs run for patients, supplies of testing

Key Imperatives

  • Evaluate channel partner’s margin neutral pricing
  • Evaluate impact of controlled price mechanism under the GST regime
  • Channel partner education and awareness, transition plan
  • Evaluation of impact of supply chain efficiency on pricing

SAP Business One S/4 HANA Solutions

  • SAP Business Planning add-on on SAP S/4 HANA
  • SAP Predictive Analytics
  • SAP Profitability and Cost Management
  • SAP Net Margin Analysis on SAP S/4 HANA
  • SAP GRC – Access Control, Process Control

Record to Report (R2R)

Impact Sub-areas

  • Accurate recording and reporting of the tax credits
  • Correct administration of the taxable and exempt inputs/products
  • Generation of multiple reports, returns and timely filing

Key Imperatives

  • Initiatives for increasing awareness of the key reporting requirements across business functions
  • Establishment of strong internal controls for transaction capture, record, review and reporting

SAP Business One S/4 HANA Solutions

  • SAP GRC – Access Control, Process Control
  • SAP Master Data Governance
  • SAP S/4HANA
  • SAP Financial Closing Cockpit
  • SAP Receivables Management
  • SAP Disclosure & Notes Management
  • SAP Shared Services Framework

Tax and Compliance Management

Impact Sub-areas

  • Up-gradation of the vendor data based and tax registration details

Key Imperatives

  • Initiatives for increasing awareness of the key reporting requirements across business functions
  • Establishment of strong internal controls for transaction capture, record, review and reporting

SAP Business One S/4 HANA Solutions

  • SAP GRC – Access Control, Process Control
  • SAP Master Data Governance
  • SAP S/4 HANA
  • SAP Financial Closing Cockpit
  • SAP Receivables Management
  • SAP Disclosure & Notes Management
  • SAP Shared Services Framework

SAP B1 GST Functionality

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