Introduced as The Constitution (One Hundred and First Amendment) Act 2016, The Goods and Services Tax aka GST is new step by the Indian Government to transform taxation system in India.
Governed by the GST Council and its Chairman, the Union Finance Minister of India – Mr. Arun Jaitley, GST is a full indirect tax that will be applied to manufacture, sale and consumption of goods and services across the India to replace the taxes levied by the state and central governments.
Thus, to claim a tax credit to the value of paid GST on the transactions for goods and services during commercial activities, it is mandatory for businesses to register for GST. Get to know how to register for GST today.
Today, various organizations use SAP to handle all kinds of business transactions and taxes. So, it is important for them to go for GST SAP implementations. Read on to understand how GST India will work and the significance of GST SAP Implementations.
How GST Will Work
GST is the unified indirect tax which is imposed on the supply of goods and services. There will be two GSTs, one for the center that is CGST and other for the state that is SGST to levy on the common tax base. Both CGST and SGST will be charged on intra-state supplies while IGST will be chargeable on inter-state supplies.
For instance, the small businesses which will have turnover up to Rs. 20 lakhs are exempted from GST. However, other taxpayers that have the turnover exceeding Rs. 20 lakhs (Rs. 10 lakhs in North-East states) are mandatory to register and pay GST.
Significance of GST SAP Implementations
As GST will be implemented from July 1, 2017, it will change the way organizations do their business because it will ultimately transform the taxation system. This step taken the Indian Government should be highly appreciated because it will improve the business environment.
However, there is no need to worry about facing this transition because technology will be the key that will pave the way for compliance and improved profitability. For this, businesses can get in touch with organizations that can help them analyze the various facets of their SAP implementation that include:
To adapt and update to the relevant version
- To refine tax-related (outward & inward business processes)
- To reconfigure tax computation methods
- To update different master data
- To follow the sequential number for outgoing invoices
- To adhere to new reporting and printing structure
To know the benefits of GST bill, it is important to read GST information & GST latest news regularly.