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Final specifications have yet to be published and may not be published until as late as Feb 2017.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.