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Goods and Services Tax - One India, One Tax, One Market

With the objective of modernizing the taxation system and increasing the business efficiency, India is all set to replace all the indirect taxes levied on goods and services by the Centre and States and implement GST effective from April 2017.

GST is expected to simplify levy and administration from multiple statutes to single statute. It will widen the tax net and enable compliance while ensuring transfer of tax credit till last level (end consumer).


Uniformity and Simplicity in taxation is indeed a brilliant idea!! However, a long hard road lies ahead for businesses.

GST will be a game changing reform for the Indian economy by creating a common Indian market and condensing the cascading effect of CENVAT and Service tax with set-offs. It will affect the Tax Incidence, Tax Payment, Tax Structure, Tax Compliance, Computation, Reporting and Credit Utilization leading to a complete revamp of the existing indirect tax system.

GST will change the entire way in which businesses are carried out in India. Therefore, it is the right time for the organizations to brace themselves up and strategize the integration of GST into their operations. In the light of business reports issued last year and the Model GST laws issued in June 2016, organizations must start examining the GST impact on their business operations. Supply chain optimization, IT, products and services pricing patterns, warehousing strategies, accounting and tax compliance systems are some of the business facets that must be re-looked at so as to synchronize with this latest key reform.

Time is of Essence

GST would bring in substantial change in the way of doing business in India. Advocacy for best practices, developing IT systems, training teams and preparing up for changes in processes for being GST complaint are the chief areas to be reviewed.

As with any new tax reform, there will be several new developments and updates, and corporates should be looking to refine and reassess the implementation work undertaken in the lead by 1-April-2017.

Be a GST-Ready organization by 1st-April 2017, with Diverse Infotech’s world-class GST implementation services. As a recognized SAP partner, we have robust and pre-defined solutions for GST implementation and upgradations.

GST Impact on SAP Landscape Summary

Below are the processes / areas in SAP Landscape which are impacted by GST

• SAP Materials Management (Procure to Pay)
• SAP Sales & Distribution (Order to Cash)
• SAP Financial Accounting
• SAP Forms & Master Data
• SAP Human Capital Management

Compliance Required

There are quite a few compliance requirements for GST. There will be a Unique GST number based on PAN and a Single GST registration per state (GSTN) for SGST and IGST. GST reg. no. needs to be captured for each registered Customer and Vendor. Separate GST Tax Accounts will be required for AP and AR per CGST, SGST and IGST per registration level. Outgoing GST invoices will require unique sequential numbering. Utilization of input tax credit is allowed against output tax as per the government rules. Separate registers for CGST, SGST and IGST (Registration level segregation) needs to be maintained. Besides all these, there are changes in Tax administration with introduction of GSTN and interfacing with it.


  • Tax Procedure should be on TAXINN

Any business system that is presently on the old and obsolete tax system “TAXINJ” is recommended to upgrade this to TAXINN to ensure a seamless transition to GST once it is rolled out officially.

SAP’s Solution Approach for GST

Globalization Services, the localization wing of SAP SE, is evaluating in detail the impact of GST on business processes. SAP is anticipated to be ready with a GST patch that can be deployed in the current systems to enable transitions of businesses of businesses to GST. The development of the GST patch is under process and the same will be released once the Indian GST law is published.

GST Implementation Services

SAP’s GST patch will not fully address all GST compliance requirements in the current system and would need GST implementation and migration services from SAP partners.

Application of GST patch is just one aspect of an elaborate and intricate procedure to become a GST- Ready organization. Therefore, services of a recognized SAP partner would be required for successful GST implementation/migration. The GST implementation process includes:

• Deployment of SAP’s GST patch
• Modifications to the chart of accounts and account determination
• Reassessment of stock and available tax credits conforming to the GST law
• Restructuring of tax and pricing configurations conforming to the GST requirements
• Interface with GSTN (GST Network) for filing returns
• Changes to custom developments, reports, interfaces and forms
• Changes to the master data, primarily vendors, materials, pricing and customers
• Fine tuning of business processes including indirect taxes

Roadmap & Methodology

Impact Analysis and Post GST Business Process

It is advisable that you perform a detailed GST impact analysis and share with us the changes that you require for your business processes from SAP perspective. Business scenario must include determining the existing business scenario to be impacted by GST and identifying any relevant business scenarios not mapped in SAP.

Start with preparing different scenarios for the application of GST. Continually track policy development regarding GST and update prepared scenarios accordingly. Identify issues and concerns needing representation to the authorities and develop a strategy for effective management of these as well. Prepare a business and IT transition roadmap and align relevant teams besides preparing IT system to build and test process scenarios. Our experts will utilize this as “Requirement Document” to implement GST as per the scope pertinent for you as part of our “GST implementation services”.

Services offered

Diverse Infotech offers related to GST implementation :

• SAP GST Assessment Service – Free of Cost if paid service is taken.
• SAP TAXINJ to TAXINN Migration Services.
• SAP Support Pack upgrade Services
• SAP GST Implementation Services

The Diverse Infotech Advantage

• Highly experienced Finance and Tax functional team managed by Certified Chartered Accountants
• Successfully executed multiple projects of Support pack upgrade..GST
• SAP certified and trained team for GST implementation.
• Expert in TANINJ to TAXINN Migration, successfully executed multiple GST implementations
• Close Association with CA and ICWA institutes/ firms.
• Automated tools available for swifter and error free migration.
• Way ahead on learning curve as compared to others.