Some useful tips for those who missed upgrading their SAP System to GST !
It has been a great journey towards reaching the goal post of GST rollout. It was challenging for the govt. of India to stick to the July 1 roll out date for GST especially when the industry was not fully ready. Despite under preparedness of the industry, govt. took a rather bold decision to move ahead with GST rollout on July 1.
Number of Industries geared up at the last moment and crossed a lot of hurdles to reach the GST goal post. One of the key challenges faced by the companies was concerning clarity for the business solutions to incorporate the GST processes in the IT systems. A majority of the companies have now gone live with GST related changes in their ERP systems. There are still many businesses who have not yet started with the GST enablement projects for their enterprise IT systems. Very few companies are on the verge of going live with GST enabled enterprise system in coming few weeks.
I take this as a moment of pride for YASH to announce that we have made our 110+ customers on SAP ERP systems to go-live with GST functionalities in the 1st and 2nd week of July 2017. Interestingly, in few cases, it was on just before 00:00 hours of 1st July 2017.
For the companies who have not yet gone live with GST functionalities in their SAP ERP systems, we have come up with few workarounds steps for businesses to become compliant with new GST taxation system within their existing functionality until such time they go-live with GST enabled SAP ERP system.
- Delimit all the sales and purchase related condition records w.e.f 30.06.2017
- All the purchase and sales transactions are to be posted without taxes. A financial JV to be posted for the taxes against the respective G/L account for purchase and sales. • A manual transaction to be posted for adjusting the taxes.
- For purchases, the tax amount should be adjusted during the MIRO transaction using the G/L tab – entering the debit amount of taxes for the respective G/L.
- The consolidated details invoice wise (for sales and purchase) will not be available in SAP. Maintain a tracker in excel for all the transactions invoice wise. This will help for data reconciliation during the GST returns filing.
- Sales invoices to be created in the excel/word format with new number series from 1st July 2017 with all the details like GSTIN of supplying location, the bill to and ship to along with the GSTIN of Bill to and Ship to, etc. as per the statutory requirements.
- STO to be continued in the same manner the way it is followed currently, for the IGST postings a manual FI JV to be posted for the tax accounts at sender and receiver end.
- Else have sale and purchase transactions created with separate document types to identify the STO transactions.
- Sub-contract activities to be continued as usual if it is against a challan.
For the companies who have already gone live with GST functionalities here are some next steps:
The output formats like the invoice, delivery challan, subcontracting challan, PO, etc. are to be made available in the desired formats as prescribed by new GST regime. ERP system should be now ready for providing the internal MIS reports with GST components (rates and values) included.
While the ERP system is getting stabilized with the GST processes, it is now time to look for the GST returns filing processes using ASP/GSP or may be manual excel upload. The govt. has given the relaxation for filing returns till 15th Sept. However companies are required to file the returns with gross amounts of sale/purchases made for each month using GSTR-3B form. Companies are still required to submit the filings for July and Aug at invoice line items level by 15th Sept.
Now the focus must be on the data extraction from the ERP system to furnish the GST returns filing as required by the business / GSTN. At YASH we are committed to helping our customers for the GST returns filing using ASP/GSP or any GST related process compliance to ensure you get your business running smoothly, efficiently and profitably.
Praveen Bhoomraogari is a senior technology professional – Program Manager and Mihir Turakhia is a senior Indirect Tax Consultant @YASH Technologies.