{"id":8246,"date":"2017-06-23T14:18:04","date_gmt":"2017-06-23T14:18:04","guid":{"rendered":"http:\/\/www.esds.co.in\/blog\/?p=8246"},"modified":"2019-01-25T09:58:38","modified_gmt":"2019-01-25T09:58:38","slug":"gst-impacts-organisational-it","status":"publish","type":"post","link":"https:\/\/www.esds.co.in\/blog\/gst-impacts-organisational-it\/","title":{"rendered":"The Impacts of GST on Organisational IT"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-8263\" src=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2017\/06\/gst-banner1-blog-300x171.png\" alt=\"gst-impact-oganisational IT\" width=\"674\" height=\"385\" srcset=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2017\/06\/gst-banner1-blog-300x171.png 300w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2017\/06\/gst-banner1-blog-150x86.png 150w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2017\/06\/gst-banner1-blog-660x377.png 660w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2017\/06\/gst-banner1-blog.png 674w\" sizes=\"auto, (max-width: 674px) 100vw, 674px\" \/><\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_76 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.esds.co.in\/blog\/gst-impacts-organisational-it\/#Impacts_of_GST_on_Organisational_IT\" >Impacts of GST on Organisational IT<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.esds.co.in\/blog\/gst-impacts-organisational-it\/#What_is_GST\" >What is GST?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.esds.co.in\/blog\/gst-impacts-organisational-it\/#GST_and_Technology\" >GST and Technology<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.esds.co.in\/blog\/gst-impacts-organisational-it\/#Become_a_GST-Ready_Organisation\" >Become a GST-Ready Organisation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.esds.co.in\/blog\/gst-impacts-organisational-it\/#What_will_be_few_tweaks_required_to_get_GST_Ready_ERP\" >What will be few tweaks required to get GST Ready ERP?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.esds.co.in\/blog\/gst-impacts-organisational-it\/#GST_and_SAP\" >GST and SAP<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<h2><span class=\"ez-toc-section\" id=\"Impacts_of_GST_on_Organisational_IT\"><\/span>Impacts of GST on Organisational IT<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"color: #344878;\"><b><span style=\"font-size: medium;\">GST, a unified tax structure, would be a game-changer in Indian financial structure. The implementation of Goods and Service Tax would call for many changes in IT framework (infrastructure) of an organization.<\/span><\/b><\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_GST\"><\/span><span style=\"color: #0a1242;\">What is GST?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Goods and Services Tax seeks to abolish the large number of indirect taxes like Sales Tax, Central VAT, luxury Tax, Purchase Tax, Octroi, Excise Duty, and levy only a singular tax for the Goods and Services consumed. GST, a unified tax reform will help remove tax barriers or revenue collection challenges, between Centre and the States, creating a single unified market.\u00a0 According to the <a href=\"https:\/\/www.esds.co.in\/gst\">GST<\/a>,\u00a0goods and services are finalised to be divided into four tax slabs wiz. 5%, 12%, 18%, and 28%.<\/p>\n<p>The Goods and Service Tax will comprise of:<\/p>\n<div class=\"su-list\" style=\"margin-left:0px\">\n<ul>\n<li><i class=\"sui sui-bank\" style=\"color:#0a1688\"><\/i> <span style=\"color: #1a2040;\"><b>CGST<\/b><\/span>: where the revenue will be collected by the Central Government<\/li>\n<li><i class=\"sui sui-bank\" style=\"color:#0a1688\"><\/i> <span style=\"color: #1a2040;\"><b>SGST<\/b><\/span>: where the revenue will be collected by the State Governments for intra-state sales<\/li>\n<li><i class=\"sui sui-bank\" style=\"color:#0a1688\"><\/i> <span style=\"color: #1a2040;\"><b>IGST<\/b><\/span>: which will be levied by Central Government on inter-State supply<\/li>\n<\/ul>\n<\/div>\n<h3><span class=\"ez-toc-section\" id=\"GST_and_Technology\"><\/span><span style=\"color: #0a1242;\">GST and Technology<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Goods and Services Network (GSTN) will process about 3.5 billion invoices each month. IT industry experts doubt that the system can seamlessly match billions of credits, debits and check on tax evasion without any technical glitches. Harpreet Singh, partner, Indirect Tax at KPMG-India states that the rare case of non-functioning of the GSTN portal, due to technical issues could give sleepless nights to the industry and be a dark nightmare.<\/p>\n<p>Applying security patches to dynamically generated sensitive data and updating accounting systems is a crucial step to ensure smooth transition to GST. Upgrading and proper training of information technology systems and taking other suitable measures also play a vital role for smooth shift towards GST.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Become_a_GST-Ready_Organisation\"><\/span><span style=\"color: #0a1242;\">Become a GST-Ready Organisation<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>GST is anticipated to be driven on online platform. A robust IT infrastructure is required where real time updation of data will take place. The massive amounts of sensitive financial data makes it inevitable to have a strong and stringent IT infrastructure, to meet reporting and security requirements. Also the <a href=\"https:\/\/www.esds.co.in\/gst\" target=\"_blank\" rel=\"noopener\">GST-ready IT infrastructure<\/a>\u00a0should meet the compliance requirements as specified by GOI. Enterprise ERP systems need the very much essential revamp so as to add or deduct the rows where the information is fed-in, to keep things aligned asper new GST regime. IT teams require time-frames to update the ERPs and accounting softwares to realign with GST requirements. Trial and testing of the newly created or updated ERP systems becomes vital to check the functionality and avoid any last minute glitches. It may also require procurement of hardware for development and testing environments before moving to production environment a major tax reform rolls-out from 1 July,2017.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_will_be_few_tweaks_required_to_get_GST_Ready_ERP\"><\/span><span style=\"color: #0a1242;\">What will be few tweaks required to get GST Ready ERP?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Let us consider few pointers where you can get your ERP GST ready:<\/p>\n<div class=\"su-list\" style=\"margin-left:0px\">\n<ul>\n<li><i class=\"sui sui-suitcase\" style=\"color:#0a1688\"><\/i> The GST compliance of ERP systems is crucial as it impacts the functions of most of the departments at an organisational level. At the enterprise level, the ERPS must be planned, tested and implemented before the July 1 &#8211; GST deadline.<\/li>\n<li><i class=\"sui sui-suitcase\" style=\"color:#0a1688\"><\/i> The GST bill will definitely change the way businesses function now as all tax related procedures, documents will need to be aligned to GST rules<\/li>\n<li><i class=\"sui sui-suitcase\" style=\"color:#0a1688\"><\/i> When companies register and obtain a GST identification number (GSTIN), it will absorb the excise registration, service tax registration, and VAT registration<\/li>\n<li><i class=\"sui sui-suitcase\" style=\"color:#0a1688\"><\/i> Tax procedures will change completely to accommodate the new GST structure<\/li>\n<li><i class=\"sui sui-suitcase\" style=\"color:#0a1688\"><\/i> The transaction under new GST regime should be started afresh. The several pending or partially open transactions should be closed, reversed or migrated to the new GST system or need some temporary arrangements to be made.<\/li>\n<li><i class=\"sui sui-suitcase\" style=\"color:#0a1688\"><\/i> ERP companies like SAP have rolled-out GST related support and software patches. It is secure to have your GST implementation with <a href=\"https:\/\/www.esds.co.in\/sap-hana-cloud-hosting\" target=\"_blank\" rel=\"noopener\">SAP certified cloud service provider<\/a>\u00a0.<\/li>\n<\/ul>\n<\/div>\n<h3><span class=\"ez-toc-section\" id=\"GST_and_SAP\"><\/span><span style=\"color: #0a1242;\">GST and SAP<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>GST is digital. The enterprises have to get rid of manual ledgers and vouchers, with deployment of strong technical backup aiding the shift towards digitization of all records and \u00a0process automation in transactional systems. There is no alternate way than welcoming GST &#8211; compliant system.<\/p>\n<p>SAP to act as an Application Service Provider (ASP) in Taxpayer enterprise landscape. SAP shall offer ASP services in the TaxPayer enterprise landscape through the SAP Localization Hub, Digital Compliance Service solution for India<\/p>\n<p>SAP would be providing the required interfaces to upload the invoice in the GSTN. SAP will act an as Application Servce Provider(ASP) in GST landscape. GST registered business entities need to connect their enterprise SAP\u00a0 to GSTIN.<\/p>\n<p>As stated earlier, business functions will undergo drastic changes, following the recommended procedures asper GST Model law. The changes made have to be reflected under the ERP suite too.<\/p>\n<p>Some of the changes required in business processes would be:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-8264\" src=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2017\/06\/gst-text-300x150.png\" alt=\"gst-impact-organisational-IT\" width=\"674\" height=\"336\" srcset=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2017\/06\/gst-text-300x150.png 300w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2017\/06\/gst-text-150x75.png 150w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2017\/06\/gst-text-660x329.png 660w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2017\/06\/gst-text.png 674w\" sizes=\"auto, (max-width: 674px) 100vw, 674px\" \/><\/p>\n<p>The list of requirements specifically depends on the industry, complexity of business operations, legal entities involved in the business.<\/p>\n<hr \/>\n<div class=\"su-note\"  style=\"border-color:#b8ca9c;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\"><div class=\"su-note-inner su-u-clearfix su-u-trim\" style=\"background-color:#d2e4b6;border-color:#ffffff;color:#592929;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\">Get in touch with Exuberant GST Crew for all your GST needs. <a href=\"tel:1800%20209%203006\" class=\"su-button su-button-style-3d\" style=\"color:#7b4444;background-color:#8dcb99;border-color:#71a37b;border-radius:5px;-moz-border-radius:5px;-webkit-border-radius:5px\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"color:#7b4444;padding:6px 16px;font-size:13px;line-height:20px;border-color:#b0dbb8;border-radius:5px;-moz-border-radius:5px;-webkit-border-radius:5px;text-shadow:none;-moz-text-shadow:none;-webkit-text-shadow:none\"><i class=\"sui sui-phone\" style=\"font-size:13px;color:#1b567b\"><\/i> <b>Click to Call<\/b><\/span><\/a><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Impacts of GST on Organisational IT GST, a unified tax structure, would be a game-changer in Indian financial structure. The implementation of Goods and Service Tax would call for many changes in IT framework (infrastructure) of an organization. What is GST? Goods and Services Tax seeks to abolish the large number of indirect taxes like&#8230; <\/p>\n<div class=\"clear\"><\/div>\n<p><a href=\"https:\/\/www.esds.co.in\/blog\/gst-impacts-organisational-it\/\" class=\"gdlr-button small excerpt-read-more\">Read More<\/a><\/p>\n","protected":false},"author":34,"featured_media":8263,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[187],"tags":[1508,1507,1510,1509],"class_list":["post-8246","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-good-and-service-tax","tag-gst","tag-it-of-organisation","tag-organisational-it"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/posts\/8246","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/users\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/comments?post=8246"}],"version-history":[{"count":20,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/posts\/8246\/revisions"}],"predecessor-version":[{"id":8710,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/posts\/8246\/revisions\/8710"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/media\/8263"}],"wp:attachment":[{"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/media?parent=8246"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/categories?post=8246"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/tags?post=8246"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}