Goods and service tax is a new regime taxation system for the whole nation bringing in unorganized sections under uniform platform. This system makes tariff to be unique across all functional areas by streamlining different types of indirect charges leveraged on state and central excise duty into single concept subsuming other multiple taxes.  Enterprise application software provider SAP launched GST compliance platform to help SME's boost their shift towards digital economy. Introduction of GST performs transactions in standardized approach yet resulting in delivering some important changes for growth of SME's. SAP is continuously working on enhancing SAP Business One by complying legal regulations of GST solution.


  • Common market across country- One Nation, One Tax and One Market
  • Optimization of resources
  • Improved tax compliance
  • Upgraded financials
  • Better control on tax revenue
  • Reduction in startup cost and efforts
  • Removes cascading of taxes

Get GST Ready with SAP
Comprehensive indirect taxing replaces

multiple taxes on Goods and services

GST Structure

Specific tax types are available for handling GST. Setting up of these categories greatly helps to have successful administration in order to mitigate risk involved in reconciliations.

Central GST (CGST) - Goods and Service taxes revenue are collected by central government.

State GST (SGST) -The taxes shall be tarriffed by state government in the sales being made.

Integrated GST (IGST) – Movement of goods between states are managed and revenue flow is set to central government.

Things To Be Known Before Implementing GST

Most important change before implementing common taxing rule is the migration from existing TAXINJ to TAXINN system.

Businesses needed to deploy,

  • Relevant upgraded version of SAP Business One software
  • Enhancement packages
  • Service packages

Since minimum level for SAP ERP 6.0 which follows subsequent legal requirements.

Areas of Impact

Introduction of GST phenomenon will broadly change day to day business landscape. Complete inward and outward taxes are reviewed and aligned in correspondence with GST requirements so that tax utilization goes through proper framework.

Tax Registration

  • Defines unique registration level based on GSTIN i.e. Identification Number.
  • It defines single registration concept for CGST, SGST and IGST.
  • Unified registration is set up for every state of business establishment

Master Data Maintenance  

  • GL accounts, Business partner and tax data are captured and handled in right manner.
  • Separate tax for A/P invoices which is required for GST level
  • GL accounts should be determined and defined at various structures


Tax Configuration And Computation  

  • Configuration of tax procedures are computed and quoted clearly.
  • Inter and intra state import transactions are configured for account determination.
  • Deductable and non deductable types of GST calculation are defined clearly for sales and distribution pricing procedures.

Document Numbering

  • Sequential numbering are defined for invoice processing
  • Legal registration are defined in accordance with government criteria
  • These numbers are assigned consecutively for every page of documents


  • Utilization of input tax credits are followed as below,
  • Input CGST are utilized in accordance with output CGST and IGST
  • Input SGST are audited contrary to that of resulting SGST and IGST
  • Input IGST are exercised against output obtained on IGST, CGST, SGST


  • Based on data submitted by tax payers reports are consolidated by GSTN systems.
  • Determination of capital purchases and sales across different channels transfer details.
  • Sales quotations, ordering, A/R invoicing are analysed to exempt tax code

Business Process Localization

  • Sales Processes
  • Procurement operations
  • Transfer of stock orders
  • Subcontracting functionalities
  • Production and many other entities are included.

GST- The Game Changer

Goods and service taxes through SAP designed especially for SMEs resolves their existing drawbacks on paying out several multiple indirect taxes for successful running of business. It is a right tool that provides data protection and security as per GSTN guidelines meeting global standardizations.

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