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
