Dec 16 2016 | ERP
Getting Organization IT Systems conform to GST norms in Time

By: Vipin Bansal | Delivery, ERP

India needs to roll out the proposed Goods and Services Tax (GST) by Sept. 16, 2017, with Target date of Apr. 01, 2017. These reforms will provide a unified rate of indirect taxes across the country.  This will ease the movement of good/services and prevent double taxations across the states. This will benefit the consumers as manufacturing and distribution chains will now be able to offset their taxes with the amounts already paid through tax in the value chain. Plethora of multiple taxes like VAT (states), CST (central), service tax, excise duties, surcharges, octroi and luxury taxes will get consolidated for consideration of tax implications. It is one of biggest indirect tax reform and it will bear significant impact on industrial and service data recording procedures, tax computation and reporting mechanisms. With taxes getting standardised across the country, these system changes will be further stretched with new business model changes for optimizations of supply chain sources and enlarged customer base into new regions.


Various ERP vendors like Oracle, SAP and others, that provides systems to record this data, are working diligently to provide application updates to conform to GST norms. However, for many organizations, large customization or out-of-support ERP versions may make it a significantly uphill task to update their system of records to the latest GST compliant norms. It is a humongous work for ERP vendors to provide these updates within such a crunched timeline across multiple ERP suites, industry verticals, and multiple versions of applications. With these system updates coming up in 2017 Q1; deploying, testing, and adopting these updates, will be a race to finish line for most organizations. System Integrators are helping their customers adapt the ERP systems to changing needs to

  1.   Conform to GST compliances for invoices and returns submissions
  2.   Incorporate changing business scenarios for competitive options available across the country
  3.   Upgrade/update their IT/ERP systems across the organizations for changes in recording, computing and reporting of tax liabilities.

We believe that GST changes would be easier managed for organizations having their IT systems on supported IT/ERP platforms. Organizations that are running their IT systems on outdated ERP versions or having huge add-on customizations may need significant changes from their IT partners to conform to GST norms. There would be multiple industry specific business scenarios like TOD, volume discounts, service credits, exclusions that would provide additional challenges and need more clarity for interpretation and application of GST.