SIG 2020 India GST 2020 Presentation - Oracle · India Legislative Changes –GST 2020 Disclaimer...

| PeopleSoft India SIG 2020

Learn . Explore . Experience

PeopleSoft FMSMohan Rajan

GST 2020 ChangesIndia Legislative Update

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, timing, and pricing of any features or functionality described for Oracle’s products may change and remains at the sole discretion of Oracle Corporation.

Safe harbor statement

PeopleSoft India SIG 2020 | Learn . Explore . Experience Copyright © 2020, Oracle and/or its affiliates | Confidential: Internal/Restricted/Highly Restricted2


India Legislative Changes – GST 2020

Disclaimer

1. All efforts at providing a solution to the changes introduced to India GST in 2020 are “PLANNED AS SET OUT IN THE ROADMAP”.

2. PeopleSoft will play an enabling role for GST Reporting3. Customers will have to work with their GSP / Third Party of choice for reporting transactions to GST

Network


India Legislative Changes – GST 2020

History of GST in PeopleSoft

q India GST was introduced in PeopleSoft in June 2017, just in time for the Go Live Date

July 2017

q All Products in the Order TO Cash and Procure to Pay Cycles are GST Compliant

q Products include PO,AP,EX,OM,BI,AR and XGC


3

2

1

GST Returns – ANX-1 and ANX-2

Input GST Credit Availment

Invoice Schema and E-Invoicing

Program Agenda

India Legislative Changes - GST 2020

PeopleSoft India SIG 2020 | Learn . Explore . Experience Copyright © 2020, Oracle and/or its affiliates | Confidential: Internal/Restricted/Highly Restricted6 Copyright © 2020, Oracle and/or its affiliates | Confidential: Internal/Restricted/Highly Restricted6

What is changing


q GST Invoice Schema

q eInvoice process

q Input GST credit availment process

q Returns ANX-1 and ANX-2 via Offline Tool


India Legislative Update- GST 2020India Legislative Changes - GST 2020Impact on Peoplesoft products

q Billing

q Payables

q Global Components

q Receivables

q Expenses


New Invoice Schema

q A new Invoice schema has been stipulated to avoid compatibility issues across a multitude of ERP

systems used by various Tax payers under the GST regime.

q The new schema has mandatory as well as optional fields.

q Validations in respect of existing fields

q Every new B2B and B2G invoice must be uploaded to the Invoice Registration Portal (IRP) in real time and

an Invoice Reference Number, QR code, etc. should be obtained and associated with the invoice and

printed

q This will be implemented by the taxpayer using API’s / FTP service provided by GST Partners

e-Invoice Process

India Legislative Update- GST 2020India Legislative Changes - GST 2020


India Legislative Update- GST 2020India Legislative Changes - GST 2020E-Invoicing Process Continued

q Bill will be finalized but not printed. Bill cannot be loaded to AR / AP (For IU Billing)

q Accounting Entries will also no be generated at this point

q Bill data elements will be exported to a CSV file and placed in an Outbound / Source Folder

q This Source folder will be accessible by the GSP

q GSP will uptake the CSV file, extract data that is needed for E-Invoice, convert to JSON, Encrypt

using AES256 Method and Upload to IRP

q IRP will decrypt and validate the JSON and generate a Hash Code and a QR Code

q This will again be encrypted and sent back.

q GSP will decrypt, convert to CSV and place the information from IRP in a Destination Folder

q Customer will export data in CSV to the Billing Table

q Now the Invoice can be printed


Bill finalized not Printed

JSON file encrypted

and Uploaded to IRP Server

JSON File uploaded to IRP

By GSP / Customer

Exported to CSV File in a new Source

Folder

Bill data in BI

tables

PSFT

E-Invoice Process

CSV File in Destination

Folder

GSP

Bill Data from IRP Server

Decrypted and

converted to JSON

By GSP / Customer

Converted to JSON

GSP

Converted to JSON

GSP

GSP

DEIUDEIU


Reporting – ANX-1

Outward Supplies Reporting ANX-1

q Outward supplies will be reported in ANX-1 which is provided in excel format by

GSTN.

q All elements of Billing data in the GST Reporting table will be exported to a CSV file

using DEIU

q Customers will work with partners to massage the data in the csv file to the format

specified for ANX-1

q Via Offline utility, customer can import the data in ANX-1 and convert to JSON format

to upload to the GSTN Portal




Inward Supplies Reporting ANX-2

q Inward supplies will be reported in ANX-2 which is provided in excel format by GSTN.

q All elements of Payables data in GST Reporting table will be exported to a CSV file using DEIU

q Customers to work with partners to massage data in the CSV file into the format specified for Purchase

Register

q Via Offline utility, customer can import the data in the template specified by GSTN and convert to

JSON format to upload to the GSTN Portal

Reporting – ANX-2


Input GST Credit

Matching Inward supplies against Suppliers Invoices

q The GST Offline tool has a section for Matching Purchase Register data with suppliers’ invoices uploaded to GSTN

q Once the process is run, matching will take place and the results will be categorized as follows:q Full matchq Partial matchq Unmatched

q In respect of full matches, customer may avail full amount of Input GST credit

q In respect of Partial / No match, customer may opt to Accept or Deny or Keep Pending all such purchases

q The customer may only claim the full amount of input GST credit on fully matched purchases + 10% of fully matched purchases in lieu of partial / no matches.



India Legislative Changes - GST 2020Parameters to consider for matching ANX-2 with Purchase Register

The following parameters are used to conduct matching

1. GSTIN of supplier2. GSTIN of customer3. Invoice / Debit Note Number4. Invoice / Debit Note date5. Taxable value 6. Tax Amount

q Depending on which parameters and how many are not matching will determine a Partial Match or Unmatched status


Input GST Credit

Accounting Entry for Input GST Credit

A journal entry template may be created as follows:

q DR Input GST Credit xxxx

q CR Intermediate Input GST Credit xxxx

Payables

q Oganizations need to check for IRN on incoming Supplier Invoices and reject any that do not have an IRP

q As the process of availing input GST credit is determined by the GST Network, current functionality of moving amounts from intermediate input credit amount to final credit account at time of posting payment will be changed.




Input GST Credit Process continued

q In case of difference between Purchase Register Data and Supplier Invoice, customer needs to Reject the Invoice,

request Supplier to Accept the Rejection and issue and upload a Debit / Credit Note

q Customer can rerun Matching and Claim the Full amount of Input GST Credit

q This process is critical where value of invoice received differs from Voucher amount due to Inspection / Receipt

issues or such other causes

q Customer should periodically contact Supplier to get them to issue Debit / Credit Notes promptly for each Invoice

where a difference exists


sTART

GST Reporting

Table

CSV FileWith Purchase

Data

CSV File with Billing Data

PSFT DEIU PSFT DEIU

ANX-1 CSVANX-2 CSV

GSP/Customer GSP/Customer

Offline ToolGSP/customer GSP/Customer

GSTN

JSON

New Return Process

Journal Transferring

ITC from Inter. To Final

SIG 2020 India GST 2020 Presentation - Oracle · India Legislative Changes –GST 2020 Disclaimer...

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