SAP Version Impact

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Goods and Services Tax (GST)

By,
PRIMUS Techsystems Private Limited
Excelling Together!!!

PRIMUS Techsystems Private Limited,

202, Tower S4, Cybercity, Magarpatta, PUNE -13
Contact : +91 6022 1122/33/44
SAP Pre-requisites for GST Implementation

Pre-requisite of GST
• Tax Procedure – TAXINN (Condition Based)
2252781 - FAQ on Tax procedure migration from TAXINJ to TAXINN
2014164 - TAXINJ to TAXINN Migration
2167294 - Prerequisite Note for SAP Note 2153807
2153807 - Improvements in Tax code update programs for Purchase Order/Scheduling
2161911 - Purchase order display and Invoice display/cancel issue

• Minimum Support Pack level

Refer SAP Note no 1175384

• GST Update Notes

2315692 - Information on GST

2374453 - How to differentiate between TAXINJ
and TAXINN in SAP ERP System
2385575 - GST India - Changes to Master data
2386062 - India GST: GSP and ASP
2405502 - GST India - Changes to Master data- DDIC activities
2405801 - FAQ on Goods and Services Tax (GST)

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How to Check (SAP_APPL) Patch Level - SAP
GST Impact on SAP System

4
GST: Areas of Impact in SAP System

Tax Registration Define GST Registration levels

Master Data Maintenance Business Partner Tax Data, GST Accounts

Tax Configuration & Computation Configure Tax and Pricing procedures; Tax computation

Document Numbering Outgoing Invoice Numbering

Business Process Localization Extend Support to currently localized Business Processes

GST Tax Postings GST Input and Output Tax postings

Utilization Input tax credit utilization against payable for GST Taxes

Reporting Tax Register

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SAP Solution Proposal

6
Tax Registration

Capture GST registration at Business Place level

 Business Place – Assignment to Plant

• Link the GST Registrations(Business Place) to Plants

Vendor GST Registration

• Format Validation
– Length 15 Char
– State Code for 2 Char
Vendor Master GST Classification

• GST Classification of Vendor

– Registered
– Non Registered
– Compounding Scheme
• For Tax Calculation as well as
reporting
Vendor Partner Fuction

© 2016 PRIMUS
Techsystems Private Limited
Customer GST Registration

• Format Validation
– Length 15 Char
– State Code for 2 Char
– Check Digit?
Customer Tax classification

• GST Classification of Customer

– Registered
– Non Registered
– Compounding Scheme
• For Tax Calculation as well as
reporting

© 2016 PRIMUS
Techsystems Private Limited
Material Master HSN Code – Foreign Trade
export View
• HSN Code
• For Tax Classification and
Reporting
• To be captured for each invoice
item
• Chapter ID for excisable material in
India Specific J1ID table
Material Master – Tax Indicator For Material
Purchase View
• Used for tax determination in
Purchase Transactions
– GST Standard Rate
– GST Exempted
– Excisable w.o. GST
• For Tax Classification and
Reporting
• Few HSN to be kept out of GST
regime
Material Master – Tax Indicator For Material Sales
View
• Used for tax determination in Sales
Transactions
– GST Standard Rate
– GST Exempted
– Excisable w.o. GST
• Reporting
• Applicable for Service Master also
Service Master – SAC Code

• SAC Code
• For Tax Classification and
Reporting
• To be captured for each invoice
item
HSN/SAC Code Column for Finance Transactions
HSN/SAC Code Column for Finance Transactions
BSEG Table with New Fields
Tax Account - Determination

Business Place based G/L account determination – Both for MM and

SD
Tax Configuration and Computation- Proposed Solution

• JISN -IN State GST ND

• JICN -IN Central GST ND
• JIIN – IN Integrated GST ND
• JISR – IN SGST Rev Charge
• JICR - IN CGST Rev Charge
• JIIR - IN IGST Rev Charge
Tax Configuration and Computation- Proposed Solution

SD Pricing Procedure – New Condition Types

Tax Conditions Access Sequence - Purchase
Tax Conditions Access Sequence - Sales
Document Numbering

Unique sequential numbering for outgoing GST invoices

 Criteria for legal numbering may be specified by govt.

 It could be for example:

– Registration level
– Document type (Invoice / Credit
Memo)
– A combination of above
–…
Document Numbering- Proposed Solution

Maintain Document Class

Document Numbering- Proposed Solution

Assign Document class to Document Types

Document Numbering- Proposed Solution

Assign Number Range to Business Place

Utilization

 Utilization of Input tax credit would be as under

– Input CGST to be utilized against output CGST

and IGST

– Input SGST to be utilized against output SGST

and IGST

– Input IGST to be utilized against output IGST, Input Output

CGST and SGST in the order of IGST, CGST,
SGST and UTGST

– Input UTGST to be utilized against output

UTGST and IGST
GST Forms

GST Tax Invoice

Invoice No. (Serially Numbered)
Date 01 – 04 – 2016
Name (Local Buyer) : Mahindra & Mahindra Ltd.
Address : Kandivli (East), Mumbai
GST TIN (Tax Payer Identification Number of both – Seller & Buyer)
Sale of Goods ( Auto Parts ) Rs.
Net Supply Price……………………………………………………….……………………… 100.00
Freight ………………………………………….……………………… 05.00
20% GST Net Taxable T.O. ….. 105.00
…………………………… 10% C GST 10.50
……………………………………………………
10.50
--------------------------------- 10% S GST ---------------------------------

Total ------------- 126.00

Specific Requirements as per the State C – S GST Acts.

Like Certificate, Time of sale, Name & Address of Printer etc.

Authorized Signatory
Business process Change for Sales and
Distribution

Domestic Sale
• Master Data:
Material master,
Customer master,
Condition master,
J1ID data will be obsolete
• Customizing Changes:
Pricing Conditions, Access sequence and Procedure
Account determination
Change in no range for outgoing invoices
Process Flow:
Sales Order Delivery Billing
J1IIN transaction will be obsolete

© 2016 PRIMUS
Techsystems Private Limited
SAP Draft Notes Release

GST SAP Note

 GSTN Portal

1.Suppliers will upload their

Sales Data which will contain the
following information
2.Buyers will download the
data from the GSTN Portal
• Match the same with the receipt data in
their systems.
• Identify exceptions – Invoice in GSTN not in
ERP
• Goods in Transit
• Value Mismatch
• Material not Received
• Identify exceptions – Invoice in ERP not in
GSTN.
• Material received not uploaded by
supplier.
Manufacturers/ Consumers
Suppliers will upload their Sales Data • Upload the exceptions on to the GSTN
will download data from the
Portal. (Unregistered Suppliers)
• Mico GSTN Portal
• Lucas TVs • Mahindra’s
• MRF Tyres • Tata Motors
GSTN Authorities will provide
• Ashok Leyland • Standard API will be provided for
upload download of data, between
© 2017 PRIMUS Techsystems Private Limited
ERP & GSTN Portal
 GSTR-1, GSTR-2 & GSTR-3
 GSTR1
 A normal registered taxpayer has to file the outward supply (Sales details) details in GSTR-1.
 In relation to various types of supplies made in a month, namely outward supplies to registered persons,
outward supplies to unregistered persons (consumers).
 Details of Credit/Debit Notes, zero rated, exempted and non-GST supplies, exports, and advances
received in relation to future supply.
 Only certain prescribed fields of information from invoices need to be uploaded.
 This form is require to submit 10th of every month as per GST model Law.

 GSTR2
 Details of inward supplies (purchase details ) of taxable goods and/or services claiming input tax credit
 While a large part of GSTR-2 will be auto-populated
 The recipient can himself feed the invoices not uploaded by his supplier.
 The credit on such invoices will also be given provisionally but will be subject to matching. On matching, if
the invoice is not uploaded by the supplier, both of them will be intimated.
 If the mismatch is rectified, provisional credit will be confirmed. But if mismatch continues even after
intimation, the credit provisionally allowed will be reversed.
 This form is require to submit 15th of every month as per GST model Law.

 GSTR3
 At any stage, but before September of the next financial year, supplier can upload the invoice and pay
duty and interest on such missing invoices in his GSTR-3 of the month in which he uploaded the invoice.
 The recipient will then automatically get ITC on that invoice. The interest paid by the recipient at the time
of reversal will also be returned to the recipient through an automated system on the GSTN.
RETURN SCHEDULE
 RETURN SCHEDULE
 Normal/Regular taxpayers – monthly return

 10th day of succeeding month: last date for uploading supply invoice details – GSTR -1

 15th day of succeeding month: last date for auto-population & uploading purchase details – GSTR-2

 17th day of succeeding month: last date for finalizing supply & purchase details

 20th day of succeeding month: last date for filing GSTR-3

 Input Service Distributors (ISD) taxpayers to file monthly return:

 By 15th day of succeeding month – GSTR-6

 Tax Deductors to file monthly TDS return:

 by 10th of succeeding month – GSTR- 7

Adobe Acrobat
Document
SAP as ASP (Application Service Provider)

38
 UNION TERRITORY GOODS AND SERVICES TAX

 UNION TERRITORY GOODS AND SERVICES TAX

 It extends to the Union territories of the Andaman and Nicobar Islands, Lakshadweep,
Dadra and Nagar Haveli, Daman and Diu, Chandigarh and other territory.
 for levy and collection of tax on intra-State supply of goods or services
 For the purposes of this Act, should be considered to be a separate Union territory;

 Utilisation:-

 Integrated tax shall first be utilised towards payment of integrated tax and the amount
remaining, if any, may be utilised towards the payment of central tax and State tax, or as
the case may be, Union territory tax, in that order
 The Union territory tax shall first be utilised towards payment of Union territory tax and the
amount remaining, if any, may be utilised towards payment of integrated tax;
 The Union territory tax shall not be utilised towards payment of central tax.
UNION TERRITORY GOODS AND SERVICES TAX

 UNION TERRITORY GOODS AND SERVICES TAX

 Union territories
 Andaman and Nicobar Islands
 Lakshadweep
 Dadra and Nagar Haveli
 Daman and Diu
 Chandigarh

 Utilisation:-

UTGST UTGST, IGST and SGST

 IGST First Utilised IGST Amount remaining CGST and SGST, or UTGST.
 The UTGST First Utilised UTGST Amount remaining, MAY BE IGST.
 The UTGST not be utilised CGST.
 Thank You

© 2017 PRIMUS Techsystems Private Limited