India’s Government passed the much awaited Goods and
Services Tax (GST) Bill, paving the way for the introduction of Goods and
Services Tax (GST) which is expected to go into effect 4/1/ 2017. GST is
considered the largest indirect tax reform in India, subsuming multiple taxes
at central and state levels.
GST is a single indirect tax on the supply of goods and
services, right from the source to the consumer. Credits of input taxes paid at each stage of
the supply chain will be available in the subsequent stage of value addition,
which makes GST essentially a tax only on value addition at each stage. It is
expected to bring changes to the process and compliance requirements that will
include tax calculations, liability accounting, and input tax recovery.
PeopleSoft 9.2 Update Images plans to deliver an expansion
to the existing India Tax engine that is expected to comply with the new GST
law. This expansion is expected to include a global infrastructure with flexible
setup for all possible tax calculations for Interstate and Intrastate taxes.
The new structure is expected to be utilized by PeopleSoft products such as
Accounts Payable, Purchasing, Inventory, Order Management, Billing, Accounts
Receivable and Expenses to accurately calculate, and record the appropriate tax
amounts for the manufacture, sale and consumption of goods and services.
Customers can prepare for the change by being current on
PeopleSoft FSCM 9.2 Update Images. Areas of change will include the core
transactional entry pages such as Voucher Entry, Purchase Order Entry and more.
Final specifications have yet to be published and may not be
published until as late as Feb 2017. A detailed (190 page) GST Model Law was published in June 2016. Further
updates will be made to the PeopleSoft Legislative Blog as more detail is made
available by the India government. Customers can connect with Oracle Support
for further questions.