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Approach note to Manage GST migration 8 Aug 2015

What is this note about:- This is in ref to proposed implementation of GST in all companies having operations
in India with tax applicability as per Indian Legislation.

The Government of India proposes to implement GST (Goods and Services Tax). It is one of the most significant
tax reform post-independence.

It is expected to replace our current taxation structure of Central and State indirect taxes (such as VAT, Excise
Duty, Service Tax, Central Sales Tax (CST), Entry Tax, Entertainment Tax, Luxury Tax etc.) with a seamless
indirect tax regime.

The proposal is yet to be passed by upper house. Therefore the implementation date is not known yet.
However it is likely to be in this financial year. So we have to be prepared.

In SAP system, its impact will be on below areas.

The High level approach will be as given below.


Delivery owners Compile
list of impacted projects
and data thereof
(template attached)

Current Tax procedure


is TAXINJ or TAXINN?

TAXINJ TAXINN

SAP is expected to provide


One step transition or OSS notes. Utilize the same
Two step transition? to implement GST.

One step Two step

SAP OSS notes


Re-implement Tax Migrate to TAXINN. SAP is expected to provide will support
procedure OSS notes. Utilize the same to implement GST. only TAXINN

In all cases, be prepared with all test scripts and test data.

In case of TAXINJ, the decision of “One step or Two step transition” depends largely on two major factors

a) The amount of testing effort required. As this has a great statutory implications, extensive testing has
to be done. The testing effort will depend on number of factors e.g. how many scenarios to be tested,
how many iterations of each scenario (depending on process variations, number of combinations of
company codes, plants, material, tax codes, vendor and customers, to be tested.

The time commitment from customer’s core team/ Process owners to perform UAT is directly
proportional to the extent of testing required.

b) Downtime:- There will be two downtimes in two step approach. This is very important factor for
transaction–intensive business.

Before any decision can be taken about it, we need to collect relevant data points.

The action plan is as given below.


S. Action Owner Target
No. Date
1 Provide template to compile data points Atul Attached with
this email
dated 8 Aug15
2 Nominate three SPOCs from each project teams (one each from FI, MM Delivery Head / 15 Aug15
and SD Module) Proj Mgr
3 List all projects which are under implementation /Roll out /Upgrade or SPOCS / 22 Aug 15
active support or we have contractual obligation to support, including Delivery Head /
global accounts with business operations in India. Proj Mgr
Fill up the attached template with complete data and share back with
us ( Siva/ KG/Atul)
4 Set up GST Task force from Entsol SAP Siva / KG/ Atul 31 Aug 15
5 Prepare a “kit” and Conduct training workshop for project SPOCS Siva / KG/ Atul 10 Sep 15
/ Mahesh
6 a) Conduct pilot run for migration from TAXINJ to TAXNN, where SPOCS / 30 Sep 15
applicable and share the findings. Delivery Head /
b) For all cases of TAXINJ and TAXINN, Readiness with all Test scripts Proj Mgr
and test data
8 Set up Governance team for each account, take decisions on the Delivery Head 30 Sep 15
approach and prepare plan
9 Review Siva / KG/ Atul 10 Oct 15
/ Mahesh

Kindly note that this exercise has utmost statutory importance.

It will have one major challenge that All projects (number may exceed 200) will be required to
Go Live on same day. So it is very important that each project /account need to have own team well
prepared to execute this plan. It will be difficult to help all 200 + projects in eleventh hour. Therefore we have
set up this facilitation plan.

It will not be possible to help Projects who do not respond in time.

So consider this very seriously and give topmost priority.

Template_Data
collection for GST readin ess_V1
Template is embedded herewith.

Kindly share with all concerned in your team. Thanks and Regards.

Please mark your all responses to us (Sivakumar SG, K Chadha, Mahesh Vaidyanathan1 v, and Atul Shah).

For more info on GST, you may refer to.

http://www.gstindia.com/ and http://www.gstindiaonline.com/

http://events.sap.com/in/gst-india-forum/en/home