EBS Financials for India Session ID:

10574
Goods and Service Tax (GST)
Prepared by:
Understanding and Troubleshooting Nilesh(Neil) Gonsalves
Senior Principal Support Engineer
GST, Functionality and New Oracle
Diagnostic Tools
24-Apr-2018

Remember to complete your evaluation for this session within the app!
Speaker - Nilesh (Neil) Gonsalves
Senior Principal Technical Support Engineer, EBS
Payables Global Support

20 years Experience. 12 years as Oracle Application and Core DBA,

8 years in EBS Payables Support. Team Lead in US for GST
Payables

2
 Agenda
 Understanding GST Changes

 GST implementation in EBS Financials for India (OFI)

 Claim and Settlement Process

 GSTN Reporting

 Diagnostics and Troubleshooting GST

 Q/A
 Overview
 The Goods and Services Tax (GST) known as The Constitution Amendment
122nd Bill, was passed by the house in India and it got effective from July 2017.
 GST is considered the largest indirect tax reform in India which replaces
multiple indirect taxes that are administered by the Central and State
Government.
 GST is a single unified tax on both goods and services at each stage of value
chain.

Central Taxes CGST State Taxes SGST

• Central Excise Duty • State VAT/Sales Tax

• Service Tax • Purchase tax
• Additional Duties of Excise • Entertainment tax
• Additional Duties on Custom • Luxury tax
• Surcharges etc.. • Taxes on Lottery etc..
 Types of Taxes in India(IL)

Direct Taxes Indirect Taxes

Income Tax Service Tax

Corporation Tax Sales Tax

Property Tax Excise Duty

Inheritance Tax Custom Duty

Gift Tax VAT

• Direct Tax: Direct tax is the tax where Liability cannot be shifted to someone else.
• Indirect Tax: Indirect tax is the tax where Liability can shift to someone else.
 GST Types

GST classified under three categories

• CGST - Central Goods and service tax GST

• SGST - State Goods and service tax
• IGST - Integrated/Inter-state Goods and service tax

Example:
INTERSTATE INTRASTATE
Company doing Business in same state will have
INTRASTATE Components (SGST + CGST)

Company doing Business with two different state IGST SGST CGST
then it will have INTERSTATE Component (IGST)
 Direct Taxes - TDS
• Company XYZ Ltd makes a payment of INR 50,000/- towards professional fees to Mr. ABC, then
XYZ Ltd shall deduct a tax of INR 5,000/- and make a net payment of INR 45,000/- (50,000/-
deducted by INR 5,000/-) to Mr. ABC. The amount of 5,000/- deducted by XYZ Ltd will be directly
deposited by XYZ Ltd to the credit of the government. This Amount is called TDS
Section Nature of payment Rate of TDS
192 Salary 15%
194 Deemed Dividend u/s 2(22)(e) 10%
194A Interest other than interest on securities 10%
1% (in cases of individuals and HUF)
Payment or credit to a resident
194C 2% (in cases of person other than individual or
contractor/sub-contractor
HUF)
5% (in cases of individuals and HUF)
194D Insurance Commission 10% (in cases of person other than individual
or HUF)
194G Commission on sale of lottery tickets 10%
194H Commission or Brokerage 10%
2% (rent of plant & machinery)
194-I Rent 10% (rent of land or building or furniture or
fixtures)
Payment/credit of consideration to a
resident transferor for transfer of any
194-IA 1%
immovable property (other than rural
agricultural land)
Professional fees, technical fees, royalty
194J 10%
or remuneration to a director
Payment of compensation on
194LA acquisition of certain immovable 10%
property
Regime To Rate Flow
 GST Tax Forms
IL Tax Details : Old IL Localization Form

India Tax Details: New GST Form for

Indirect Taxes

TDS Tax Details: New GST Form for

Direct Taxes
 India Tax Details (Indirect Taxes)
• Enter the Header details like
invoice type, Supplier Name,
site etc.
• Click on Line Items and fill the
line level and distribution
details
• Navigate back to Header. Tools
-India Tax details
• Enter the Organization and
location. Tax Category will be
defaulted
• Apply the Taxes in IL Form. Tax
Lines are inserted in AP Base
tables
 TDS Tax Details (Direct Taxes)
• Enter the Invoice header , line , distributions details
and save the transaction.
• Navigate to Invoice Headers and select menu option
Tools - TDS Tax Details.
• It opens another window , India Localization Taxes.
Here we enter the Tax Category and click on Save
Icon.

• Following Concurrent programs will be triggered

 India TDS Processing (India - TDS Processing

Concurrent)
 Import TDS invoices - invoice validate (Payables
Open Interface Import)

• Re-query the Invoice by Appending % to the Invoice

number to verify the standard TDS Invoice against
Tax authority and Credit memo against
 Process Claim
As per Section 41 of Central Goods and Services Act, 2017, every registered person shall, subject to such
conditions and restrictions as may be prescribed, be entitled to take the credit of eligible input tax, as self-
assessed, in his return and such amount shall be credited on a provisional basis to his electronic credit ledger. The
process of taking this eligible input credit is called Process Claim.

Input Tax Credit Manufacturer can Claim Back INR Output Tax Credit
64K and Deposit the Difference of Paid by
Paid by
INR 24K with Government Manufacturer=
Manufacturer=
INR 64K INR 88K

Raw Steel 18% GST = INR 36K Manufacturer

(INR 200K) Car
Sell Price= 22% GST = INR 88K Showroom
INR 400 K+ 22% GST
Other Raw 28% GST = INR 28K Dealer
Materials Invoice Price = INR 488K
(INR 100K)
 Process Claim in EBS
 Process Claim can be done only
after delivering the material to its
destination. This will be decided
by TPB Value.

 How To Do Process Claim

• Oracle Financials Of India

Responsibility > Recovery
Management > Process Recovery
• Search for Transaction
• Select Transaction for which you
want to do process claim and then
click ‘Process’ button
• Recovered amount will be shown
and status will change from
‘Pending Recovery’ to ‘Recovered’.
Accounts for Claim Process
 GST Reporting

Seller Flow Buyer Flow

Upload Outward Supply Download GSTR-2A data,

GSTN match with Purchase
Data (GSTR-1), basis for
System Registers with provision
GSTR 2A for buyer
to Accept/Reject/Modify

Seller Accept/Reject Prepare GSTR-2 for

Modifications based on Accepted Records. Auto
GSTR 1-A. drafted GSTR 1-A for
Auto generate GSTR rejected /Modifications
3 based on GSTR-1
Accepted Records and GSTR-2
Pay Net Liability and
updated to GSTR-1 Settle. File GSTR-3
 GST Settlement in EBS
 Non GSTN Based Settlement:
• Entirely form based
• Derives data based on the Repository
updated
• Create data in JAI_STL_HDRS/
JAI_STL_LINES

 How Manage Settlement Transactions

• Oracle Financials Of India > Settlement
Management
• Payables Invoice will be created with Source
'INDIA TAX SETTLEMENT‘
• Auto Creation of AP Invoice will happen only
for non GSTN based Settlement
 Credit Utilization in GST
 Tax Type Netting in EBS :
Offset tax type UI: This setup is required to
utilize the credit available used to offset the
liability with the credit available.

 Tax Credit on Transactions

• Transfer the liability from the other
organizations to the invoicing organization
• Transfer the credit available from the
other organizations to the invoicing
organization
• After that, accounting entry of settlement
which means DR: tax liability CR: tax
recovery will insert to GL interface and if
have the net balance of tax liability
remains, AP invoice which pay to tax
authority will generate, User can use the
base AP product to make payment of such
Invoice
Path to GST Implementation – Note: 2268465.1
Patch Patch Details Note
If you have already applied
Configure GST Setups
GST functional patch the enablement patch, you
Test existing IL Functionality
cannot apply this.
Apply the GST Functional
Migrate TDS Setups from the current India
TDS Migration Patch Patch and TDS Migration
Localization system to the new GST system
Patch together
India GST functional patch
Enable to perform the GST transactions.
and TDS Migration Patch
Customers must NOT apply this patch on a
GST Enablement patch
production instance until the GST appointed
Current India Localization
date.
will be made Read Only
Enable to perform the TDS transactions in This patch should be applied
TDS Enablement patch the new GST solution together with the GST
Enablement Patch
The RUP 11 contains all one off patches The Patch can be applied on
RUP XX (RUP 11) released from 20-Aug-2017 to 15-Nov-2017. the RUP 6 or any RUP patch
above RUP 6.
 GST Diagnostics & Proactive Tools
 E-Business Suite Release 12: India Goods and Service Tax (GST) Info Center (Doc ID 2176820.2)
 Diagnostics Types (LOCSTATUS, LOCAPLIST, LOCPORCT, LOCOMLIST, LOCARLIST and LOCFALIST)
 R12: India Localization Applications Diagnostics and GDF Validation (Doc ID 1542754.1)
 EBS Financials for India GST Analyzer (Doc ID 2297311.1)

Diagnostics Type Description Parameters

Derives all the Object status and version related to
LOCSTATUS None
Oracle Financials for India
Derives all the related data with Respect Financials AP Invoice ID from Table
LOCAPLIST
for India Payable Invoice AP_INVOICES_ALL
Derives all the related data with Respect Financials SHIPMENT_HEADER_ID from
LOCPORCT
for India PO Receipt(Receiving) table RCV_SHIPMENT_HEADERS
Derives all the related data with Respect Financials ORDER_HEADER_ID from table
LOCOMLIST
for India Order Management(Sales Order) OE_ORDER_HEADERS_ALL
Derives all the related data with Respect Financials CUSTOMER_TRX_ID from Table
LOCARLIST
for India Receivables(AR Transaction) RA_CUSTOMER_TRX_ALL
Book_Type_Code
Derives all the related data with Respect Financials
LOCFALIST From JAI_FA_AST_BLOCKS, Start Date
for India Fixed Asset(FA)
,End Date
 OFI GST Analyzer Note:2297311.1
 GST Analyzer is a self-service health-check script that reviews Financials For India related data,
analyzes current configurations and settings for the environment and provides feedback and
recommendations on best practices.
 This is a non-invasive script - the Analyzer does not perform any INSERTs, UPDATEs or DELETEs
to your data; it just reports on it.

 Benefits of GST Analyzer:

• Analysis and output from a particular environment

• Identifies OFI Regime to Rate system setup and configurations
• Provides recommended actions and best practices
• Analyzers may also be used as data collection tools.
• Runs as a standalone or Concurrent Request - Financials for India GST Analyzer
 OFI GST Analyzer & GST Diagnostic

GST Analyzer: Easy to identify issues based on GST Diagnostic: Link to tables that link to checks
success / warning / failure icon
 OFI GST Analyzer Layout
 Checks are grouped by tables ( Data Fixes, Base tables, Setup tables, etc.)

 RUP Patches are included

in a specific tile (GST Rup Level)

 Phase 3 patches (one offs, enablement, etc.)

are in a specific tile ( Phase 3 Patches)

 Filename of output contains the diagnostic type for easy identification

Sample Filename:
GST Analyzer - Error Signatures
GST Analyzer – RUP Patches

• Checks for what RUPS

have been applied.

• If a RUP has been applied

& one-offs are available to be
applied on top of it a new
section will show on the left
hand side with those one-offs
and if they have been applied
• RUP XX Document Link
New Functionalities and Fixes
For all Product
GST Analyzer – Data View

• Intensive 360 degree view into data

without identified solutions.
• If solutions not found, this view provides
opportunity for deep dive analysis.
• Signature data can be extracted into
excel or notepad.
• View can be exported to development
html view.
• Search can be utilized to narrow down
results.
 GST Analyzer – Phase 1,2,3 Patches

Phase 1 GST infrastructure – New EBS GST

infrastructure. Early access patch: early access for
phase 1 started in Nov 2016

Phase 2 GST Model Law – Enhancements based on

the draft GST Model Law made available by the
Government of India and infrastructure to support the
transition from the current tax regime to GST.

Phase 3 Final GST requirements – additional

requirements that have come in the final specifications
published by the Government of India. The details of
the patch are available in the (Doc ID 2268465.1)
Q&A
 Thank You
[email protected]

Session ID:
10574

Remember to complete your evaluation for this session within the app!