SAP India will be an Application Service Provider (ASP) for the upcoming Goods and Service Tax (GST) implementation in the country.
“SAP has a well-defined technology road-map to simplify GST for businesses,” said Arun Subramanian, vice president, Globalization Services, SAP Labs India.
GST is expected to play a significant role in opening up the industry to smaller businesses and offer equal opportunities to SMBs to compete and excel using a ‘one-nation, one-tax’ approach. Technology is expected to influence all the core processes of businesses across sectors.
The beginning of GST will prompt enterprises to go digital and focus on delivering better customer experiences. The change to a digital core-system is imperative for success in the GST regime and businesses will have new agile models of sourcing and delivery through a better supply chain.
GST will reduce logistics cost by almost 20 percent, according to a study by CARE. Indian organizations will have access to more working capital that they can invest in broader growth and expansion plans.
GST unifies taxation across the country and reduces barriers for enterprises across markets. This leads to a more evolved business environment that allows for enterprises to compete equally.
The reduction in operational cost will enable the usually cash-strapped SMEs to relook at their business prospects and reinvest in growth.
Digital opens up avenues of analytical tools for organizations that can enable them to tailor their pricing strategy as per real time demands in markets across country.
“We are in the final phase of making corporates GST ready,” said Neeraj Athalye, head of SAP S/4HANA, SAP Indian Subcontinent.
