GST in SAP environment
Government of India has made it certain that GST will come in 2017 as there is a legal binding to pass the law.
It has become necessary for corporate to adapt to this biggest tax change in there SAP system or Other Accounting Software.
We are working with more than 500 corporates to facilitate them to ease this transition.
We hereby share our experiences as few points that once should kept in mind while adopting or changing the SAP or accounting software for company:
1) It is very necessary to put Product and Services in the proper HSN code or Service code. As the amount has to be bifurcated properly in the regular returns.
2) Credit setoff will be on automatic pop-up basis under GST regime so it is very necessary that the vendor is genuine and entry in his accounts is booked in the same relevant month as of ours to claim setoff.
3) A proper bifurcation is also required to CGST, SGST and IGST as they are not allowed to set-off with each other in certain conditions.
4) Stock details should be maintained as it is proposed that Closing stock as on period end has to be submitted in the return.
5) KYC detail of Buyer and Seller should be maintained as the GST benefits of setoff for only genuine vendors shall be available.
6) A new reverse charge system as of now applicable in Service tax, will now become more relevant for all dealers. So not just Sales but expenses part also has to be taken care of in GST regime.
7) As GST will bring One tax in India it is necessary to maintain proper stock records individually locationwise in Godown, Branch and Shop within and outside State.
8) It shall be necessary to incorporate the change of the time at which GST will be payable on the sale/service. Relevant rules can be referred through Time of Supply.
9) Accounts and Records have to be maintained for 69 months which can be on Digital media. Records have to be maintained at the address mentioned in the Registration Certificate.
10) Stock and Credit available under present VAT system should be scrutised and detailed record should be maintained otherwise credit won’t be allowed to be carried forward in GST regime.
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