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  • Topic: SAP's Solution Approach for GST

    Development Strategy including Pre-requisites

    Prasoon Anand

    Development Expert, SAP Labs India

    Thejas A G

    Product Owner and Development

    Architect, SAP Labs India

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 2 Public

    Agenda

    Goods and Service Tax India

    Areas of Impact

    Solution Proposals

    Pre-requisites

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    GST: Areas of Impact

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

    Outgoing Invoice Numbering Document Numbering

    Extend Support to currently localized Business Processes Business Process Localization

    GST Input and Output Tax postings GST Tax Postings

    Input tax credit utilization against payable for GST Taxes Utilization

    Tax Register Reporting

    Business Partner Tax Data, GST Accounts

    Define GST Registration levels

    Master Data Maintenance

    Tax Registration

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    Tax Registration

    GSTIN GST Identification number

    Single registration for CGST, SGST and IGST

    Individual registration to be obtained in each

    state of business establishment

    PAN based registration number Up to 15

    characters in length

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    Tax Registration - Proposed Solution

    Capture GST registration at Business Place level

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    Master Data Maintenance

    Business Partner Tax Data

    GST reg. no. to be captured for each Registered

    Customer and Vendor

    GST Tax Accounts

    Separate tax A/P and A/R accumulation might be

    required at GST registration level

    To be defined for CGST, SGST and IGST

    separately

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    Vendor GST Registration- Proposed Solution

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    Customer GST Registration- Proposed Solution

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    Tax Account - Proposed Solution

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

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    Tax Configuration and Computation

    Intra-state transactions

    CGST and SGST applicable

    Inter-state/Import transactions

    IGST applicable

    Export Transactions

    Zero rated

    Region level rate variations may exist

    New condition types/access sequences and

    account determination

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    Tax Configuration and Computation- Proposed Solution

    Tax Procedure New Condition Types

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    Tax Configuration and Computation- Proposed Solution

    SD Pricing Procedure New Condition Types

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    Tax Configuration and Computation- Proposed Solution

    SD Access Sequence

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    Tax Configuration and Computation- Proposed Solution

    MM Access Sequence

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    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

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    Document Numbering- Proposed Solution

    Maintain Document Class

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    Document Numbering- Proposed Solution

    Assign Document class to Document Types

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    Document Numbering- Proposed Solution

    Assign Number Range to Business Place

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    Business Process Localization

    Sales Processes

    Procurement Processes

    Stock Transfers

    Subcontracting

    Others

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    Sales - Proposed Solution

    Sales Order

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    Sales - Proposed Solution

    Billing Document (A/R)

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    Procurement - Proposed Solution

    Purchase Order

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    Procurement - Proposed Solution

    Vendor Invoice (A/P)

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    Stock Transfers - Proposed Solution

    Purchase Order

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    Stock Transfers - Proposed Solution

    Replenishment Delivery from sending plant

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    Stock Transfers - Proposed Solution

    Outgoing GST Invoice

    Consideration Value for tax calculation.

    Will it be a pure tax Document? Example:

    OR, Will it be a GST Invoice with an account receivable? Example:

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    Stock Transfers - Proposed Solution

    Goods Receipt at receiving plant

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    Stock Transfers - Proposed Solution

    Incoming GST Invoice

    Consideration Value for tax calculation.

    Will it be a pure tax Document? Example:

    OR, Will it be a GST Invoice with an account receivable? Example:

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    Subcontracting - Proposed Solution

    Purchase Order

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    Subcontracting - Proposed Solution

    Purchase Order - Components

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    Subcontracting - Proposed Solution

    Purchase Order - Taxes

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    Subcontracting - Proposed Solution

    Transfer Posting

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    Subcontracting - Proposed Solution

    Outgoing GST Invoice

    Consideration Value for tax calculation.

    Will it be a pure tax Document? Example:

    OR, Will it be a GST Invoice with an account receivable? Example:

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 34 Public

    Subcontracting - Proposed Solution

    Goods Receipt

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    Subcontracting - Proposed Solution

    Incoming GST Invoice

    Consideration Value for tax calculation.

    Will it be a pure tax Document? Example:

    OR, Will it be a GST invoice with an account payable? Example:

  • 2015 SAP SE or an SAP affiliate company. All rights reserved. 36 Public

    GST Tax Postings

    Separate accumulation of credit and payables for

    CGST

    SGST

    IGST

    Separate accumulation at Registration level

    Automatic Tax posting to respective accounts from

    business processes

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    GST Tax Postings - Proposed Solution

    Billing (A/R) Accounting Document

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    GST Tax Postings - Proposed Solution

    Vendor Invoice (A/P) Accounting Document

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    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,

    CGST and SGST in the order of IGST, CGST and

    SGST

    Input Output

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    Utilization - Proposed Solution

    New Utilization program to handle GST credit utilization

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    Utilization - Proposed Solution

    Cross Utilization as per GST rules

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    Reporting

    Tax register

    CGST

    SGST

    IGST

    Registration level segregation

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    Tax Register - Proposed Solution

  • 2015 SAP