GST implementation on SAP

Getting ready for GST on SAP with Netlink

The Government of India introduced GST through 101st amendment to the Indian Constitution. This indirect, destination based consumption tax will replace/merge most of the existing taxes including central excise duty, services tax, additional customs duty, surcharges, state-level value added tax and other inter-state levies, thus simplifying the tax regime.

The key clauses under the Model GST Law have been finalized by the GST Council. The implementation and administration of the law will be enabled through the GST Network (GSTN) which will act as a centralized portal for the Center and States, as well as the assessees. The industry needs to ensure readiness to deal with multiple authorities, once the model is finalized.

Will my SAP implementation be impacted by GST

All SAP implementations in India will be impacted by the change brought about by this tax system. But corporates need not worry. Netlink’s SAP team can fully support the clients through the implementation process, taking care of any upgrades/compliances/changes that may be necessary to make the system ready for the new tax regime.

What is required for GST

SAP is expected to release a patch for GST soon. Netlink’s SAP will help you implement the patch and make your system compatible with the requirements of GST.

What must I do while I wait for this patch

All SAP versions are not compliant with this patch. It is imperative that all organizations upgrade their SAP implementation versions to be compliant with this patch. This should be done at the earliest.

GST is a condition based tax and cannot be implemented if your SAP has formula based tax setup. Hence clients should rectify this anomaly at the earliest.

How can Netlink help me

Netlink has a very strong SAP techno-functional team. Our team has experience in many complex implementations, upgrades and migrations.

Besides being SAP Open Ecosystem Partner, we have deep understanding of GST and how it will impact SAP implementation. Our FI-CO and SD experts have studied GST at length and they understand its intricacies, particularly with respect to SAP implementations.

How does Netlink plan to help me with this change

Netlink experts can check and evaluate the current state of SAP implementation in your organization. They will prepare a complete plan and get your approval before proceeding to implement it. It is necessary that appropriate review and alignment of the ERP/Technology infrastructure is performed so that there is a seamless flow of information with the GSTN.