Impact of the gst on sap mm, sd, and fico

SAP GST System PreparednessAnkan Majumdar, (Support Architect)SAP Digital Business Services - West

Customer

GST Support package preparedness Roadmap

Customer

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 3Internal

Agenda

Context Reason for Change Sequence

System Change Roadmap SAP’s readiness methodology Implementation – Adherence Preparation

Way Forward SAP’s release strategy

Information SAP Notes Safeguarding engagement from SAPKey Takeaways

Context


Reason for Change : GST Introduction

The Goods and Services Tax Bill or GST Bill, officially known as The Constitution (One Hundred and First Amendment) Bill, 2014, proposed to be implemented in India[1] from 1 April 2017.[2][3]

"Goods and Services Tax" would be a comprehensive indirect tax on manufacture, sale and consumption of goods andservices throughout India, to replace taxes levied by the central and state governments. Goods and Services Tax would belevied and collected at each stage of sale or purchase of goods or services based on the input tax credit method. This methodallows GST-registered businesses to claim tax credit to the value of GST they paid on purchase of goods or services as part oftheir normal commercial activity. Taxable goods and services are not distinguished from one another and are taxed at a singlerate in a supply chain till the goods or services reach the consumer. Administrative responsibility would generally rest with asingle authority to levy tax on goods and services.[4] Exports would be zero-rated and imports would be levied the same taxesas domestic goods and services adhering to the destination principle.

The introduction of Goods and Services Tax (GST) would be a significant step in the reform of indirect taxation in India.Amalgamating several Central and State taxes into a single tax would mitigate cascading or double taxation, facilitating acommon national market. The simplicity of the tax should lead to easier administration and enforcement. From the consumerpoint of view, the biggest advantage would be in terms of a reduction in the overall tax burden on goods, which is currentlyestimated at 25%-30%,[5] free movement of goods from one state to another without stopping at state borders for hours forpayment of state tax or entry tax and reduction in paperwork to a large extent.

Source : Wikipedia


SequenceCompliance Change delivery

You need to have minimum Support Pack level for SAP_APPL software component to get subsequent legal change support for CIN-Logistics(All Indirect taxes).

Activity Time Line• Model GST law released• GST adherence to start 1st April 2017• Final working law to be released by Government• SAP Notes to be released within 3 months after the final requirements of the law

are frozen

System Change Roadmap


Change DeliveryCustomer SAP Roadmap towards adherence

Customer Preparation1. Go through the supportability matrix.2. Install the requisite EHP.3. Install the requisite Support package.4. Once the SAP note is released install

requisite notes.5. Follow the manual correction parts.6. Customize according to your business

process.


Adherence PreparationCustomer specific steps towards compliance

• Cross system impact analysis (Change impact on interfaced systems)

• EHP installation impact analysis (Upgrade Change Impact Analysis)

• SAP Preparatory note adherence. (Side effect analysis)

• Adjust SPAU and SPDD for installation of EHP and SPs

• Changes in reporting and printing.

Way Forward


SAP Release Requirement Summary

You are required to be at the following minimum support pack level of software component SAP_APPL, to obtain support for any subsequent legal change, for Country version India(CIN).

SAP_APPL Release Support Pack

SAP ERP 6.0 (600) SP 26EHP2 FOR SAP ERP 6.0 (602) SP 16EHP3 FOR SAP ERP 6.0 (603) SP 15EHP4 FOR SAP ERP 6.0 (604) SP 16EHP5 FOR SAP ERP 6.0 (605) SP 13EHP6 FOR SAP ERP 6.0 (606) SP 14EHP6 FOR SAP ERP 6.0 for HANA (616- SAP HANA) SP 08EHP7 FOR SAP ERP 6.0(617) SP 07EHP8 FOR SAP ERP 6.0(618) SP 02SAP S/4HANA ON-PREMISE 1511 SP 02

Information


Mandatory Items

The Mandatory Prerequisites to consume the GST solution provided by SAP are

1. Minimum support pack that the customer should be on is provided in the following note -https://launchpad.support.sap.com/#/notes/1175384

2. TAXINN is the default tax procedure. Please refer to the following FAQ note related to the migration of the tax procedure -https://launchpad.support.sap.com/#/notes/2252781

https://launchpad.support.sap.com/#/notes/1175384

https://launchpad.support.sap.com/#/notes/2252781


SAP Compliance Engagement Support

In case you need SAP support for

1. GST System Compliance Engagement – SAP , Tailored Engagement to safeguard Technical system compliance

The above is a separately charged engagements, contact your respective Client Partner for detailed information or reach out to the below for further details1. Barkha Menghani [email protected]

mailto:[email protected]


Key Takeaways & Project Roadmap

•Upgrade methodology•Upgrade Impact

System ChecksSystem Checks

• Inclusion of GST patches

•SPAU SPDD

Upgrade ExecutionUpgrade Execution •SAP Releases GST

Notes• Implement note (Automated corrections and Manual Corrections

GST ReleaseGST Release

•Business & customer specific activities

• Implement changes to system

GST Implementation

GST Implementation

SAP Safeguarding services for GST Preparedness

Live Questions?

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Impact of the gst on sap mm, sd, and fico