Digitalize Tax Reporting in India for Goods and Service Tax (GST) Compliance

GST Digital Compliance Service enables you to transition to the new paradigm of tax reporting in India.

Overview

The introduction of Goods and Service Tax (GST) in India brings in a new regime of tax compliance; moving from the filing of tax reports to a model based on data communication between taxpayers and the GST Network (GSTN) organization. GSTN has introduced two new entities, GST Suvidha Provider (GSP) and Application Service Provider (ASP), whose roles are to facilitate the data communication with the GST system on GSTN in the required format.

SAP offers ASP services in the taxpayer enterprise landscape through the SAP Localization Hub, digital compliance service for India solution developed by Globalization Services on SAP Cloud Platform. This solution provides consolidation capabilities at the GST-registration level of a taxpayer organization for data from disparate systems and is designed around a framework-driven approach for reporting. The GST Digital Compliance Service offers end-to-end capability, from the transfer of supply invoice data from SAP ECC systems, to organizing information into the required format and communicating data to the GST system via GSP. The solution has been designed according to the same communication nomenclature and security protocols that GSTN has prescribed for the GSPs, including interfaces to authorized digital signature providers. All inward communication to this solution is achieved via RESTful APIs, which ensure that data from disparate systems is collected in a standard structure. The user-friendly SAP Fiori launchpad provides a dashboard that tracks various states of data communication in alignment with the due dates prescribed by GSTN.

The solution diagram above illustrates the combined architectural pattern of the runtime and design-time environments for implementing a GST Digital Compliance Service solution. The solution triggers an invoice summary upload to the ASP cloud application running on Java Runtime and uses the SAP Fiori launchpad as the user interface to file the tax returns on the GST-compliant data to the GST Network.

Download the blueprint 
 

Bill of Material - SAP Cloud Platform components for licensing considerations

Please note that the following Bill of Material is for reference purposes only. The following table is only an example of the SAP Cloud Platform services and components required for this use case. Please consult your SAP Account Executive regarding your specific licensing needs.  

Sales Item

Function

Licensing metrics

Example

SAP HANA Service

The most advanced in-memory database fully managed across multiple clouds.

GB Memory in 16 GB Blocks

2 Block

SAP Cloud Integration

Seamlessly orchestrate business processes and integrate data in real-time.

Instances

2 instance

Java server

A virtualized hardware resource used by Java-based platform applications.

Instances

2 instance

SAP Cloud Platform Portal

Create role-based, multi-channel sites to access business apps and content

Site visits

1000 visits

Document Service

Store and manage all your documents.

GB storage

40 GB

Customers can use the SAP Cloud Platform pricing estimator to calculate the required investment for a particular project. Scale up or down on services as required.

Members and partners of SAP PartnerEdge* can evaluate the development of an application for this use case – most development licensing is covered by the packs offered by SAP’s partner licensing services. Click here for details.

*excluding open ecosystem basic.
 

Estimating BOM

Selecting SAP Cloud Platform Integration: When choosing the service plan, consider how many end-to-end productive connections your organization will need. SAP Cloud Platform Integration for process services include 3 connections; this use case needs 1 connection. Tenants for development and test tenants are recommended.