Thursday, August 18, 2016

GST India How It Impact On ERP Systems

What is the GST ?
GST means goods and service tax which is under the indirect Tax. GST replace most indirect taxes currently in place such as:

Proposed GST Structure:

GST Impacts on Key Business:
GST Game Changer:

GST will be a game changing reform for Indian economy by developing a common Indian market and reducing the cascading effect of tax on the cost of goods and services. It will impact the tax structure, tax incidence, tax computation, tax payment, compliance, credit utilisation and reporting leading to a complete overhaul of the current indirect tax system.

What process needs to be followed for implementing GST in ERP Programs:

  • Goods & services tax act-study 
  • Understand how GST is subsuming of existing taxes
  • Understand functioning of GST
  • Understand GST compliance's

How can we Manage GST in Microsoft Dynamics Navision:

Till the Microsoft patch release we will manage it through minor customisation and structure and to set up posting details for GST, you must define the posting groups, rate of GST, and the accounts to which GST is to be posted.

  • Need to change master data, supply chain, transactions and system design.
  • Existing open transactions as on the cut-off date need to be migrated out to ensure smooth transition to GST.
  • Changes in supply chain report e.g. purchase register, sales register and service register.
  • Changes in tax Reports.
  • Changes need to be done on forms & Tax Returns
  • As per compliance changes needs to be done on documents e.g. invoices, purchase orders and credit memos.

How GST makes ERP life easy

Current Process
Currently we need to make multiple setups in the Microsoft Dynamics Nav e.g. excise setup, service tax setup and sales tax setup.

After GST
After implementation of GST, the process will become simpler with only a single setup.

About the Author:
Kunj Bihari Agrawal is a senior functional consultant for Microsoft Dynamics Navision. Kunj has a rich experience of over 11 years in finance domain & India statutory in MSD NAV. He has a passion for exploring possibilities of easing the entire ERP migration for corporate and is currently working with various government and private focus groups in ironing out the creases & roadblocks for GST migration on various technology platforms. He can be reached at: [email protected]

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