TheIndiantaxationsystemisoneofthemostcomplexintheworldwith

severallevelsoftaxeshavingdifferentcomponentsandrates.Th
governmentistryingtosimplifyorreducethecomplexityofthis
systemandbringtheGSTintoplace.GSTisagoodsandservices
whichwillbeimplementedinIndiawithmultiplelevelssuchasC
(CentralGST),SGST(StateGST),etc.,whichwillreplacetheexi
excisetax,servicetax,VAT,andCST,etc.
Thischangeoftaxsystemwillalsobeabigchangeforcommercia
organizationsandthesoftwaresystemstheyuseforbusiness
transactions.CompaniesusingSAPwillalsohavetoupdateorcha
theirsystemsaccordingtothenewlegalrequirementsinIndia.
SAP,astheleadingERPproviderincludingagoodcountryversion
packageforIndiacanbeexpectedtocomeupwiththenecessaryS
notesforthetaxchangeandtherelatedprocesses.Inadditiont
SAPnotes,usersmightalsorequireadditionalcustomizingaccord
theirbusinessprocesses.ButevenwithsuchSAPnotesandcustom
thecompaniesinvolvedmustapplythelatesttaxprocedureforth
companycodesbasedinIndia.ThismeanstheIndiancompaniesusi
SAPandtheoldtaxprocedureTAXINJshouldmigratefromtheold
proceduretothenewprocedureTAXINN.
ThischangeoftaxsysteminIndiadoesnotyethaveaprecisech
planbutisexpectedtobeimplementedincalendaryear2016ora
latestbyApril2017.Becausethereisnofixedtimeschedulepre
thegovernment,thisistherighttimetoswitchfromTAXINJtoT
ThismigrationtoTAXINNinvolveschangesinFItaxprocedureas
inthesalesandpurchasepricing.Therefore,werecommendstarti
migrationassoonaspossibletoenabletheswitchinwithoutany
ontimeandwithaproperand100%compliantSAPsolution.
EvenifGSTisnotimplementedin2016itstillisagoodideato
taxprocedureforIndiancompaniesusingSAPtoTAXINN.Thereaso
thatthenewprocedureandcustomizingchangeswillenableeasyh
oftransactionswithtaxconditionsandmakeschangingoradding
taxesortaxratesverysimple.Themigrationisthereforerecomm
anycase,inordertooptimizehandlinginIndiancompanycodes