Service providers, young entrepreneurs and legal experts at the Global Business Summit voiced concerns and expressed hope with regard to the impending indirect tax regime as the parliament discussed the goods and services tax (GST) bills. Analysing the GST as a combination of the state, central and interstate GST, Bimal Jain, executive director of A2Z Taxcorp, lamented the differential treatment meted out to services under the proposed new indirect tax structure. “Services tax rates will increase to 18% from 15%, and this will reduce the purchasing power of the consumers,” said Jain. Another pain point which he highlighted was the multiple statewise registrations required for service providers under the GST. Application Service Providers (ASP) and GSTN Suvidha Providers (GSPs) are part of an indispensable chain to ensure the success of the ‘one nation, one tax’ dream GST wants to accomplish. Alok Agarwal and Ankit Agarwal of Alankit, spoke of the need to educate people to ensur...

The big GST debate is on. The Modi government has tabled 4 Bills related to landmark tax reform before the Lok Sabha, eyeing a July 1 launch date for a unified tax regime. The move will subsume a slew of indirect taxes at the centre and in states.   For GST, 7 hours have been allotted for today's debate, with union minister Arun Jaitley putting his argument first for this reform. Congress is likely to move amendments to the GST bills, but the leadership has advised its MPs that they should not come across as blocking the tax reform.   Here's what the FM said in the Parliament:   GST council was made under Article 279 A.   GST consists of Central GST, State GST, Integrated GST and UT GST laws.   There will be four tax rates, the highest being 28 percent. But luxury products and sin products like tobbacco products will attract extra amount. For five years, these will be considered as compensation cess and it will go to compensation fund. This m...

From our observations, preparedness of organisations seems to vary. Many large organisations have been proactively following the changes including dissecting the latest Model GST Law; we have seen that there are corporates in the MSMB sector that will adapt to changes that are underway. To be GST compliant, organizations will have to broadly manage their changes under these heads: Corporates will have to manage their tax engine to run with GST as well as with Excise and Sales Tax. While most of the goods will be under the new tax regime, there are few goods that aren’t included currently in the GST list, but are essential for business Aligning business processes to suit business needs rather than meeting tax needs Understanding and complying with a new process of submitting all sales invoices online (through a portal or via GSP) and managing returns online SAP is committed to support the implementation of GST in India. Our engagement with stakeholders be it our c...

Even as the government pushes ahead with implementing goods and services tax (GST) there could be an unintended implication: increase in the income tax collections, say industry experts. Industry trackers say that since the GST data will capture the tax paid by all the companies, it could also be  compared with the income tax data of the owners, promoters or beneficiaries of the companies. All businesses — manufacturers, distributors, retailers — will have to register on the GST network once the regulation comes to force. All the transactions of a company and thereby the revenues and profits would be captured by the GST system. Once captured in the GST system, tax officials can make an educated guess about income and evasion over the past years. “GST will not only impact the indirect tax collection but also the income tax collections as this is one tool where the tax officials will have a data to calculate incomes of people, against the income taxes paid by them,” said a...

This change of tax system will also be a big change for commercial organizations and the software systems they use for business transactions. Companies using SAP will also have to update or change their systems according to the new legal requirements in India. The corporate landscape for GST is rapidly evolving with the proposed amendments and is expected to impact the Tax Structure, Tax Incidence, Tax Computation, Utilization and Reporting leading to a complete overhaul of the current indirect tax system.  The SAP GST India Forum which was designed to assess the impact GST would have on the business processes across various industries, brought together an ecosystem that included decision makers, partners, customers and consultants.  Over 450 organizations and 1500 participants were present at the event. Globalization Services (GS), the localization wing of SAP SE, has initiated a working model with customers by setting up individual workgroups, each of which...

SAP S/4HANA Migration with GST Solution with Migration@SAVI Optimize IT operations, and innovate business processes faster to become a best-run business. SAP delivered a massive wave of simplification and innovation in the core of SAP S/4HANA. With this delivery, enterprises can drive unprecedented business value with innovative use-cases - in core financial and operational areas such as in logistics taking full advantage of a simplified data model and a responsive user experience. Savic  SAP S/4HANA migration templates helps SAP Business Suite customer to move from different start releases to SAP S/4HANA. For certain start releases, a one-step procedure is available, which includes the installation of the SAP S/4HANA Core and, if necessary, the migration of the database to SAP HANA. As part of the move to SAP S/4HANA, Savic Migration approach helps customers to adapt current implemented solution to comply with the scope and data structures of SAP S/4HANA.

SAVIC   feel extremely happy as I announce a new Partnership with Netmagic , Netmagic, an NTT Communications company, is India’s leading Managed Hosting and Cloud service provider, with 9 carrier-neutral, state-of-the-art data centers and serving more than 2000 enterprises globally. Headquartered in Mumbai, Netmagic also delivers Remote Infrastructure Management (RIM) to various Enterprise customers globally including NTT Com’s customers across Americas, Europe and Asia-Pacific region.The Company was the first in India to launch services – Cloud Computing, Managed Security, Disaster Recovery-as-a-Service (DRaaS) and Software-Defined Storage. Netmagic has been recognized with 5 awards at the CIO Choice Award 2017 and the Frost & Sullivan India ICT Award 2016.  About NTT Communications Corporation NTT Communications provides consultancy, architecture, security and cloud services to optimize the information and communications technology (ICT) environments of enterprises...

Keeping in mind the scope and the time-lines, one might be tempted to take an approach where quick but shallow deployments can be achieved. However,  SAVIC  recommends an SAP® Activate approach where the project deliverables would be in line with the Best Practice methodology. Under this approach calls for a tighter implementation plan and a higher level of discipline within the project team. This SAP® Activate approaches not only guarantees success bit also helps in accelerating the speed of implementation without diluting the quality of the documentation generated during the implementation. The Goal of SAP® Activate methodology is to implement SAP S/4HANA & its components faster, easier, and at affordable rates for customers. The SAP® Activate innovation adoption frame- work is a unique combination of best practices, methodology, and guided configuration to help customers and partners implement the SAP S/4HANA suite. It is designed for IT and business professionals w...

The value proposition and related return on investment (ROI) highly depend on the motivation and selected approach for each upgrade project(s). The value proposition is specific to every customer because their system landscapes and SAP software in use is very unique. Furthermore, SAP customers have different needs to achieve further improvements in operational excellence or to become enabled for future business motivation. SAVIC  Upgrade Approch The ROI of an SAP upgrade is closely related to the upgrade project approach.  SAVIC  is differentiating the following major approaches which are driven by different motivation and may lead to different ROI and payback period Planning for Installation, Update, and Upgrade Processes Scope and Requirements Hardware & Software Prerequisites Dependencies to Other Systems Solution Manager Prerequisites Landscape Planning Add-on Compatibility Business Functions Testing Implementation of the Installation Process...