GST is coming up with a concept of HSM and SSC. HSM is already available which is being followed inputs by the customs. But SSC is something new which will be implemented in the GST regime.
As Per Chapter 8 of model IGST law the supply of sale of a SEZ. developer will be Zero rated. SEZ unit will be treated as interstate supplier.
When the GST tax payers e-filing their invoices on the GST networks automatically the reconciliation takes place. However, the GST providers have been told to give additional functionality Reconcile a purchase register with the inward Invoices filed by the vendors.
GST is the path-breaking initiative which was taken By Indian Government in the latest Indian business scenario. It is what the government says like one Nation one tax one market.
Abruptly the old taxes would be halted on the last day, and the next day the GST you would be live. These two concepts are such that they will create lot of chaos, and confusion. So now to start with transition provision the migration of the existing tax payers, whether be it Vat or central excise and be it service tax, it’s already under the process since last 3 to 4 months.
The master data will have a major impact. Hence the implementation will only be successful if the master data is ready in the beginning itself.
ISD means input service distributor, ISD is taken out from Central Excise and service tax and is a new concept for state legislation, as Earlier it was in Central Excise and service taxes. ISD concept will be used in place of centralized registration as the same has been scrapped in GST.
Only registered entities need to file their invoices through the GST network. However, SAP is planning to provide required interfaces to upload the invoice in the GST network. We are well prepared what makes the functionality smooth for our customers to upload their invoices on the GST network.
Procurement itself is a complicated process in GST. Primary leave all the inward materials has to be accompanied by an invoice and the same is valid in GST regime also. Now there is a big process behind invoicing, as soon as you receive invoices for materials in your organisation you are supposed to upload that information on the GST network.
Service pack released by SAP and which are mandatory to be implemented. Those are basically to activate the GST level changes on the screen level. Secondly for implementation of GST the customers should be one tax INN procedure. All those customers were still running on tax ING procedure need to be migrated to text INN procedure. These are the two mandatory steps which need to be performed before the GST implementation.
It is not only the GST implementation in the system it also requires the process to be addressed and then the process need to be tested and lot of trainings need to be provided to the users.
In GST, there is a factor for time and place of supplier of goods also. Now there will also be a concept of reverse start mechanism in goods as well, where the supplier of the goods and the receiver of the goods must pay taxes.
It is preferable to have minimum time of 10 weeks for the GST implementation alone. Various parameters are to be followed.
There would be lot many open purchase orders and sales orders available on the date of Go live for GST. It may happen that we may have to close the existing open orders which are not executed or partly executed. In such cases the customers must re-negotiate with their vendors when It comes to GST because Tax rate is also going to get changed and there will be impact on landed cost of material or services and the rates may increase or decrease. After the re-negotiation, the open purchase orders and sales orders Will be closed and fresh orders need to be created in the system.
Not necessary to deactivate the existing excise functionality. The customers can continue with the existing excise functionalities and without touching the existing functionalities we can implement GST.
There is something call place of supply in tax regime where the taxation is going to be determined Whether it is going to be IGST, CGST or SGST. As per the current situation of supply and procurement. The destination is always a dynamic situation.
Every aspect of business will get affected by GST like sales and distribution, Finance, accounts payable, bill passing team, Supply Chain, Logistics, IT and ERPs also.