EY and SAP launch digital GST compliance solutions
EY’s Goods & Services Tax (GST) compliance solutions DigiGST can now be accessed on the SAP cloud platform, following a new collaborative agreement between the two firms. The new solution increases efficiency of compliance in light of increasingly stringent GST regulations.
GST regulations, which have already called for significant rearrangement of administrative operations, now include new e-invoicing regulations as well as a new GST return system, the latter of which will be implemented from April this year. Businesses will be looking to understand what this means for them in practical terms.
According to the Big Four accounting and advisory firm, the implications of the new regulations are substantial, and indicative of further dynamism in the legislative framework in the near future. Under new regulations, businesses are expected to ensure reporting in real time of their procurements as well as revenue on the GSTN portal, all while managing their daily operations.
Businesses have already been subjected to significant structural changes following the launch of GST in 2017, at which time many in the corporate environment turned to the consulting industry for support with the transition. From the government’s perspective, GST has been successful in boosting revenue collection, although more work is required.
The legislation is still finding its legs within the tax environment in India, and experts have found that revenue collection is still falling short of government targets. Alongside efforts to digitalise the collection process, the new measures are attempts to improve the compliance landscape, and EY anticipates many more such changes.
Organisations thus need to be agile in the tax and financial compliance processes, which is where the EY and SAP solution comes into play. DigiGST leverages the tax expertise of EY and the cloud technology from SAP to significantly improve the response time for businesses to comply with the most nuanced of legislative changes.
Venkatesh Narayan, EY India Partner & Lead for Tax, Technology & Transformation, on the solution: “The EY-SAP alliance will offer the same level of assurance in terms of data quality and conformance with GST rules, experienced by existing DigiGST customers. By creating two-way integration with client SAP systems, DigiGST on SAP cloud platform will give end users a seamless experience of working on GST compliance.”
Talking about the alliance with SAP, he added, “SAP is a world leader in enterprise solutions and the platform of choice for enterprises in India and worldwide. The partnership, will help us further strengthen our market lead and provide more advanced services to our clients for end-to-end GST compliance.”
Vice President for Platform & Technologies at SAP for the Indian Subcontinent Anand Raisinghani added, “GST is the largest indirect tax reform introduced to change how Indian enterprises conduct business. With GST 2.0 progressing there will be a slew of changes like IRN and simplified reporting. EY DigiGST solution on SAP cloud platform technology will deliver real-time integration to backend ERP, capable of handling complex reconciliation, providing accurate as well as timely reporting. EY on the SAP Cloud Platform are geared to deliver business critical application, on a robust, full-function platform to ensure Indian businesses are keeping pace with changing regulations.”
