India Localization Services

SAP Technology Support



  • Innovik’s e-Invoice solution can be deployed within three weeks to enable customers to comply with the new e-Invoice mandate.
  • Advantages of e-Invoice solution -
  • More environmentally friendly (Go Green)
  • Non-disruptive and automated process
  • Inbuilt validations for all mandated master data and transaction data to ensure that the process is free of errors with prompt submission of e-Invoice payload to the IRP.
  • Process response from IRP: Process the IRN, QR code, digitally signed invoice print-out, audit trail and reconciliation with other GSTN mandates.
  • Reduced printing and postal costs
  • Reduced cash conversion cycles
  • Reduced handling costs
  • Reduced archiving costs (paper storage)
  • Reduced DSO (days sales outstanding)
  • Reduced billing disputes
  • Statutory compliance

Get your SAP E-Invoicing deployment in 3 weeks by Innovik qualified team by following these six steps!!



Digital Transformation of Tax

  • Digital Transformation of Tax on SAP S/4HANA and ECC complying with new rules for TCS on Goods Sold is effective from 1’st October 2020
  • Tax Collection at Source (TCS) - Income Tax
  • Govt of India has been strengthening its tax Collection capabilities by implementing measures to collect tax at source
  • TDS or Tax Deduction at Source provisions of income tax cover payments such as rent, commission, professional fees, salary, interest etc. Persons making such payments deducts income tax and makes net payment
  • New TCS provisions make the seller of any goods liable to collect TCS from the buyer
  • While TDS establishes tax trail on recipient’s income (primarily services), TCS aims at tax trail/recovery on buyer’s spend (on goods)

TCS Applicability

  • Finance Act 2020 introduced a new provision under Section 206C (1H) for the Tax Collected at Source (TCS) on Goods With effect from 1st of October 2020
  • Seller of any goods with turnover above Rs. 10 Crore is liable to collect TCS @ 0.1% of the sale value from the buyer if the buyer purchase goods for the value exceeding Rs. 50 Lacs
  • TCS is applicable for sale value over and above Rs.50 lakhs to a buyer
  • If the Buyer did not provide his PAN or Aadhar Number then the rate of TCS shall be 1% instead of 0.1%
  • TCS is NOT applicable for Export Sales or Goods that are liable to TDS provisions
  • Seller is liable to deposit the TCS amount with the govt. on the receipt of payment from buyer

Steps to Comply with Tax laws

  • Get your SAP ready to comply with TCS provisions and prevent business disruptions due to manual processes
  • Customize your smart forms to reflect TCS, configuring new pricing procedures, new TCS tax rates and codes
  • Enable and validate customer master for PAN and Aadhaar Number
  • Enable mechanism for keeping track of threshold limit Rs.50 Lakhs for each buyer based on PAN number
  • Set up the process for determining and accounting TCS liability based on receipt of payment from customer.
  • Identify and apply relevant SAP notes.
  • Customize TCS Report.




An indirect tax charged on the supply of goods and services, right from the manufacturer or service provider to the consumer In accordance with the indirect tax reforms introduced by the Government of India, all business operating in the country will adhere to the Goods and Services Tax (GST) act of 2016, effective from July 01, 2017. Goods and Services Tax (GST) is an indirect tax charged on the supply of goods and services, right from the manufacturer or service provider to the consumer. Credits of input taxes paid at each stage is available in the subsequent stage of value addition. Thus, the final consumer will only bear the tax charged by the last dealer in the supply chain, with set-off benefits at all previous stages.

Goods and Services Tax (GST) is an indirect tax throughout India to replace existing multiple taxes levied by the central and state governments.

Applicable GST rates are determined by the combination Nature of Purchase and Harmonized System of Nomenclature (HSN) code assigned to material.
CGST Central Goods and Service Tax
SGST State Goods and Service Tax
IGST Integrated Goods and Service Tax
Nature of Purchase Before GST After GST
Goods Purchase within State Excise + VAT CGST + SGST
Goods Purchase inter State Excise + CST IGST
Inward branch transfer (Intra State) Excise/ No Excise No Tax
Inward branch transfer (Inter State) Excise/ No Excise IGST
Job work expense No tax, only VAT in case of Painting contract CGST + SGST
Service expense Service Tax CSGT + SGST/ IGST
2.5 6 9 14
2.5 6 9 14
5 12 18 28
* * * *
*Mapped to Material HSN (Harmonized System Nomenclature)
Single registration per PAN and state of business for CGST, SGST and IGST
The scenario considered is a simple Procure to Pay cycle where Quotations received from the Vendor determine the Taxes applicable.

For complex Supply Chain scenarios where multiple goods movements, subcontracting, consignment, etc. are involved, this might not be an efficient solution for GST implementation. SAP recommended Notes and Patches should be followed in this case.
  • Steps
  • Assign Tax Procedure to Country
  • Define Tax Access Sequence
  • Define Condition Types(Tax)
  • Create account keys
  • Define Tax procedure
  • Assign GL to account keys & GL
  • Create Tax code in Country
  • Maintain Tax Codes for Excise Duties Using Condition Technique
  • Maintain Tax Condition Records