Get Ready for Tax Transformations with GST SAP Solutions

One of the major tax transformations in India is probably going to happen on July 1, 2017, in the form of GST (Goods and Services Tax) Bill. So it is important to get proactively prepared for the massive change to manage your workload without affecting the workflow of your business.

Like always, technology will play a crucial role in this transition and help organizations to pave the way for compliance and profitability. How?

Many organizations are using SAP ERP to manage business operations and customer relations. Soon with the GST bill, the parameters of taxation will change, which will have a multifold impact on businesses. Therefore, it is important to get GST SAP solutions.

The new GST bill will have several benefits for businesses in the long run, so it is better to embrace the GST compliant systems.

Goods and Service Tax

Here’s what organizations would have to take a relook at different facets of its ERP implementations to be GST ready.

Change in Business Process

GST bill will create a profound impact on several departments and business processes. All tax related will require being aligned as per GST rules. Other processes that will need revisions include sales order, goods receipt, purchase order, billing document, vendor invoice, stock transfer, and subcontracting.

Revision of Master Data

Master data such as chart of accounts, customer master, and vendor master will need revision. They should be as per new GST requirements. Organizations will need to maintain a GST registration number for every registered customer and vendor.

Sequential Document Numbering

For business, sequential numbers for outgoing GST invoices need to be maintained from July 1st, 2017.

GSTIN Registration

Every organization will be required to get GST identification number through the registration process. GSTIN will include service tax registration, VAT registration, and existing excise registration.

Change in Tax Procedure

Tax procedures will be changed to accommodate new GST structure. It includes mandatory monthly tax returns, GST tax accounts covering the entire process that is followed in SAP ERP systems.

Impact on Open Transactions

Several public transactions must be closed, revised, or migrated to the new regime. Though in some cases, temporary provisions must be made to manage transactions that spillover after the advent of GST bill.

Upgrades and Patches

ERP system must be assessed to recognize the requirement for upgrade and patches to make it as per GST compliance.


Due to different variables, implementing change in the current deployed ERP version can be a challenging task for organizations.

Therefore, it is critical to hire a specialist that could offer GST SAP solutions to accommodate changes due to GST bill.

1 Comment
  1. Reply
    Neeraj May 13, 2017 at 5:59 am

    Hi Sandeep,
    Thanks a lot for an awesome info on GST. This cleared my mind.

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