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What to Consider Before Getting Your SAP GST Ready

Every business is going to be effected with GST (Goods and Service Tax), so are you ready to confront GST. This PDF will tell you about SAP GST Implementation (http://application.sify.com/get-gst-ready-on-sap.html) and what to look before choosing SAP.

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What to Consider Before Getting Your SAP GST Ready

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  1. As GST is coming on 1st July 2017, it is important for organizations to think about SAP GST implementation. GST will transform the taxation system in India. No doubt technology has to play a crucial role to support this transition. Being business, it is important for you to understand the things to consider before getting your SAP GST ready and this post reveals all of them. Read on! Input Credit Rules With the advent of GST, there will no need for the complicated part of indirect taxes. Reason? There will be two taxes one for the center that is CGST and one for the state that is SGST. For both center and state, the tax will be charged on intra-state supply while IGST for inter-state supplies. The accounting system will need only six accounts for credit collection and set off. It will simplify the current input and output accounts for various types of taxes including VAT, Service Tax, CST, CVD, and others. Tax Rate & Tax Base There will be two tax rates for all products. It is anticipated to be set at 18%. Talking about CGST and SGST rates, they will be equal, and IGST rate will be the approx sum of CGST and SGST. Currently, the tax rates are not specified and will be notified by the Indian Government on the recommendation of the GST Council. Now, talking about the tax base, the GST bill says that tax will be imposed on all supplies by a taxable person. This simply means that everything will be under the ambit of GST except alcohol for human consumption. Further, the government might further exempt some supplies on the recommendations by the GST council. The aim of GST is to tax everything at a uniform rate across the country. Thus, before going for SAP GST implementation, you have to find out whether the product/services you offer come under GST. Backend Integration The Goods and Services Tax Number that is GSTN will be PAN-based. Thus, all the activities including tracking of transactions, sales, and purchase, the filing of returns, input and output credit counters will be done through a single portal that is GSTN. Thus, think about backend support before SAP GST implementation to connect to the online portal to automatically update the information with the government.

  2. Conclusion The points as mentioned above should be taken care of before getting you SAP GST ready.

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