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GST – The New Beginning Retail, E-Commerce and FMCG industry



Financial Year 2017-18 will be the defining year for India Inc. with the advent of  much awaited Goods and Services Tax (GST) reform. GST is expected to have a  far reaching and wide impact on business, society and general economy. It is also  expected to address the current issue of inefficiencies in the tax system, prevent  cascading impact of multi-level taxation, plug the revenue leakages and raise the  transparency levels in business. Smooth transition to the GST is one of the top  3 agenda items on the Board and Management’s strategy and execution list.  With GST, the past no longer holds good and future is laden with number of  implementation challenges.

Retail, E-Commerce and FMCG  industry is expected to have high level of impact  on account of intensive supply chains, wider reach to consumers in rural as well as  urban markets and high volume of upstream and downstream business sourcing  and distribution channels.

GST regime has a high level of impact on the  end to end business model of companies  engaged into Retail/E-Com/FMCG

Supply Chain
• Phasing out of Central Sales Tax (CST) will bring efficiency in supply chain
• Consolidation of multiple warehouses

Working Capital
Inventory management
Input credit availability throughout the supply chain  will lead to efficiency in working capital management

Consumer
• High level of B2B and B2C exposure
• Free movement of goods across the nation

Taxationa
• Higher incidence of taxation on “Sin/De-merit  goods”
• Gifts, free samples also taxable

Business Model
• Place of supply-destination based consumption tax
• Impact of phasing out of area based tax incentives
• High level of FDI

An organization needs to re-evaluate the  business models, business processes and carry out significant changes in order to ensure  smooth sailing through the GST journey

SAP S/4HANA, with its capabilities to manage  high volume of business data and management  reporting, will serve as a business enabler and help the Retail/E-commerce/FMCG companies  to sail through the requirements of GST  smoothly. It will help the Retail/E-commerce/ FMCG companies to maintain proper records and matching of the inward supplies with the  outward supplies of the vendor and for accurate  determination of the tax liability. The cost of  documentation and compliance will be under  control through implementation of technology  solution offered by SAP S/4HANA.



SAP Solutions for GST


We at SAVIC, SAP partner, are working closely with leading organizations in India for implementation of GST. SAVIC consultants and subject matter experts are advising, implementing and supporting organizations in their GST journey.

SAVIC assists organizations in understanding the impact of GST on enterprise business processes along with changes that need to be incorporated in the SAP landscape.. Our team of expert consultants will implement, train and ensure smooth on boarding to new GST regime. Subsequent to go live, our teams will be available for handholding and supporting as needed.


Businesses need to adopt a proactive approach in understanding the potential impact of GST on their SAP ERP before the GST Bill becomes a law.


Contact us Today info@savictech.com and Get GST Ready with SAVIC Technologies 


Mohammad Shakir  is a Vice President and Ujwal Landge Tax Consultant


SAVIC, “The Perfect Partner” you can rely on

So we proudly say that, We SAVIC are not only your Vendors, but SAVIC are Partner for your Success



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