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India - Goods and Services Tax(GST) Overview

Pavan Raparla
Senior Principal Software Engineer

Goods and Services Tax(GST) is a destination based tax applicable for supply of goods and services or both administered concurrently by the Center and State Governments through out the value chain except:

  • Exempted goods and Services => Very few items with common list for CGST and SGST.

Find below the quick snapshot of the proposed GST Structure:


Following 3 new tax types got proposed in GST:

CGST (Central Goods and Services Tax)
SGST (State Goods and Services Tax)
IGST (Integrated Goods and Services Tax)

GST Rates are based on Revenue Neutral Rates. Following are the proposed rate types and the rates are not yet finalized as on the blog posted date:

1. Merit rate => For essential goods and services.
2. Standard rate => For goods and services in general.
3. Special rate => For precious metals and for specified goods and services. 
4. Zero rate => For exports, supply to EOU/SEZ etc.

Goods and Services outside the purview of GST:

  • Alcohol for Human consumption =>  will continue with State Excise and VAT
  • Electricity => will continue with Electricity Duty
  • Petroleum Products => will continue with the current tax structure, likely to be brought under GST regime later
  • Tobacco products expected to be taxed under the GST regime along with Excise dutyGoods and Service Tax

GST is considered the largest indirect tax reform in India and will replace multiple indirect taxes that are administered by the Central and State Governments. 

The Goods and Services Tax Network (GSTN), has been tasked by the Government of India with building and maintaining the centralized, national level government IT infrastructure required for GST.


In reference to the Government of India’s roll out of the Goods and Services Tax (GST) planned for April 2017, the Oracle E-Business Suite (EBS) team has already put a plan in place and the details of the same shall be shared shortly in the next post.

Join the discussion

Comments ( 27 )
  • guest Monday, November 14, 2016

    Hi Friends,

    Is the New GST Configuration is possible to implement in Oracle EBS 11i Version, Please provide your analysis.

    Thanks

    Mani


  • guest Thursday, December 8, 2016

    Hi Mani ,

    Have you figured out where we can implement GST configuration in Oracle EBS 11i version.

    Thanks,

    Deepthi


  • Mahendra Monday, December 19, 2016

    Whether GST changes are possible in Oracle 11i. If yes can somebody give the reference of the team


  • Pavan Raparla Wednesday, December 21, 2016

    Dear Mahendra and Deepthi,

    Please be informed that OFI-GST patch shall be made available for EBS release version 12.1.1 onwards. India GST is considered as a critical legislative update. As per the current support policy, Patch for legislative updates would be released for EBS versions that are on Premier Support or extended support.

    Hope this clarifies.

    Regards

    Pavan


  • guest Tuesday, January 17, 2017

    Hi Pavan

    Thanks for ur reply. Does that mean if the Patch for GST updates for 11i will be possible if that's on a premier support or extended support.

    Thanx & Rgds...Mahendra


  • Pavan Raparla Wednesday, January 18, 2017

    Hi Mahendra,

    Please refer to the following clarification published in the FAQ section of India GST Info Center: "E-Business Suite Release 12: India Goods and Service Tax (GST) Info Center (Doc ID 2176820.2)"

    QUOTE

    Q) What is the minimum version of Oracle EBS that will be supported by the patch?

    The India GST patch will be available for EBS release version 12.1.1 onwards. India GST is a product legislative update patch made available per the Oracle support policy for release versions in Premier or Extended support.

    UNQUOTE

    Hope this clarifies.

    Regards,

    Pavan


  • raghu Wednesday, February 22, 2017

    my question Is the New GST Configuration is possible to implement in Oracle EBS 11i Version


  • Pavan Raparla Thursday, February 23, 2017

    Hi Raghu,

    Please be informed that it is not feasible to implement the New GST Configuration in EBS 11i version.

    Regards,

    Pavan


  • guest Monday, February 27, 2017

    When will be the reports be provided? Is it in Phase II or III


  • Pavan Raparla Monday, March 6, 2017

    Hi,

    Please be informed that due to the complexities involved (viz... the inter dependencies on GSPs etc...) no reports shall be provided as part of Phase-3.

    The users shall be provided only with the reporting content/extract which can be used to build the relevant reports (e.g. GSTR-1, 2 etc...).

    Regards,

    Pavan


  • Rajendra Tuesday, March 14, 2017

    Hi Friends,

    Could you please clarify on below points:

    1. What is difference between EBT & Indian Localization & GST.

    2. Will GST replaces India Localization.

    3. Should we have knowledge on India Localization for implementing GST.

    4. Will GST be a part of India Localization or GST is coming as different module.


  • guest Friday, March 17, 2017

    Hi Pavan

    How the Intra/Interstate stock transfer is going to happen if the physical locations are defined as sub inventory under one inventory org with attached to location. Currently Inter/Intrastate stock transfers are not attracting any tax, but going forward tax will be applicable. Please suggest how to handle this scenario without changing current org structure.

    Thanks

    Krishanu


  • Pavan Raparla Saturday, March 25, 2017

    Hi,

    Pl. find below the clarification for the query posted on March 14, 2017:

    1. What is difference between EBT & Indian Localization & GST.

    =>EBT is the Base tax engine and can be be used across to map the Global tax requirements across different countries.

    =>India Localization is specific to India tax requirements and is a compliance enabling product. India Localization(OFI)-GST is an enhanced version of India Localization which can be used for mapping the India-GST requirements in EBS.

    2. Will GST replaces India Localization.

    => OFI-GST is an enhanced version of India Localization tax engine.

    3. Should we have knowledge on India Localization for implementing GST.

    => Though it helps if you have a prior understanding of India Localization at a very high level, it is not mandatory to have this knowledge. You can directly start configuring the OFI-GST by going through the available Collateral in this regard. Refer following MOS note which contains the relevant collateral:

    E-Business Suite Release 12: India Goods and Service Tax (GST) Info Center (Doc ID 2176820.2)

    4. Will GST be a part of India Localization or GST is coming as different module

    => Oracle Financials for India(OFI)-GST is an enhanced version of India Localization and is being released as a separate patch. Refer above mentioned MOS Note(point no.3) for details.

    Hope this clarifies.

    Thanks & Regards,

    Pavan


  • Pavan Raparla Saturday, March 25, 2017

    Hi Krishanu,

    It is highly recommended to define a separate inventory organization and location to map the Intrastate and Interstate transactions.

    So, you are requested to do a Business Process Re-engineering in this context, as the tax applicability varies for interstate and intrastate transactions(e.g.CGST+SGST would be applicable for Intrastate and IGST would be applicable for Interstate transactions).

    The mapping change would help to have an auto defaulting of taxes based on the nature of transaction(e.g. Intrastate or Interstate).

    As of now, we do not have any mechanism to default the taxes for SubInventory mapping. But, alternately, we are evaluating further for any other feasible option to map the requirement if the customers are using/mapping the SubInventory feature to define the locations. Shall keep you posted on this once done with internal review.

    Regards,

    Pavan


  • Bernardo Cantor Saturday, March 25, 2017

    Hi everyone,

    we know about this new GST rollout in India around April / July 2017,

    Do you know if JDE 9.1 is adding a new patch to cover this new requirement?

    Thank you so much for your answer!

    Bernardo


  • Senthil Kumaran S Tuesday, April 11, 2017

    Hi,

    We have applied the GST Patch II in Oracle apps. Now we got stuck while doing Item Configuration. We could not save the Item Template. If anyone have the Flow of GST with screen shot please share. It will be very useful for us. Thanks.

    regards,

    Senthil Kumaran. S.


  • guest Tuesday, April 11, 2017

    Hi,

    If we have COA with Location as one of the Balancing segment, then is it require to Rearrange whole COA and Define New one ?


  • Vicky Sunday, June 4, 2017
    Hello Admin!
    Such a great and informative post indeed on GST, I really appreciate it!
    Keep updating stuffs like this.
  • Harneet Singh Wednesday, June 21, 2017
    What are the major changes required in the existing oracle erp system ver 12.1.3 with respect to gst?

    Thanks in advance...
  • Pavan Saturday, June 24, 2017
    Hi,

    In order to Configure the EBS-OFI-GST Solution, user is required to apply the OFI-GST Enablement patches and configure the GST requirements.

    For more details, please refer to the following MOS Notes:

    E-Business Suite Release 12: India Goods and Service Tax (GST) Info Center (Doc ID 2176820.2)
    GST : Phase 3 Approach to Final Release - Patch Details (Doc ID 2268465.1)
    GST : Phase 3 Approach to Final Release - Patch Details (Doc ID 2268465.1)
    GST: Oracle Financials for India (OFI) RUP Patches (Doc ID 2253455.1)
    Reporting under Indian GST regime and EBS-Oracle Financials for India Solution Offering (Doc ID 2232768.1)


    Regards,
    Pavan
  • Ashish Sunday, July 9, 2017
    Dear Admin,

    I appreciate the market presence of Oracle products,
    Can you suggest me from where we can learn People Soft etc
    Being a Finance and Accounts person I want to learn that. Is there any course cum training in Delhi NCR.

    Regards.
  • Andrea Monday, July 10, 2017
    Hello,
    Through the blog directory: https://blogs.oracle.com/blogdirectory, I see 3 blogs that could possibility be of assistance to you:
    * PeopleSoft Apps Strategy: https://blogs.oracle.com/psftlegupdates/
    * PeopleSoft Legislative Updates : https://blogs.oracle.com/psftlegupdates/
    * PeopleSoft Technology Blog: https://blogs.oracle.com/peopletools/applications-8 (has an applications category)

    We also have peoplesoft of our MOSC communities:
    https://community.oracle.com/community/support/peoplesoft?customTheme=mosc
  • Thangaraj Tuesday, July 11, 2017
    how can i avail the credit for GST and how can i run PORAI in ORACLE R12.

    also give some tips and shortcuts in Purchase module.
  • Shreyas Thursday, August 17, 2017
    Has Oracle come out with any GST solution wrt to instances using service contract module for client invoicing ?

    In absence of teh above solution, if one uses EB tax to configure on the AR side, what are the autoactivities in the standard GST solution that will get impacted?
  • shreyas Thursday, August 17, 2017
    What are the activties that are covered by teh Oracle "settlement' feature of the GST solution?
  • Murali Monday, June 11, 2018
    Hi Pavan
    Can you help me with the version of Oracle ERP Cloud that supports the India GST and a link to the documentation
  • Andrea Friday, June 15, 2018
    Hello Murali,
    Please post your question in the following My Oracle Support Community: Financials & Project Portfolio Management (FIN & PPM) (MOSC)
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