This module will not be further enhanced. Support is limited to defect fixing only.

Introduction to Goods And Services Tax (GST)

Goods and Services Tax (GST) is chargeable on any supply of goods or services sold or delivered in any country - when it is a taxable supply and made by a taxable person in the course or furtherance of the business carried on by him. GST is applicable on nearly all types of goods and services.

Click here to understand the terms and abbreviations used in this module.

GST is an indirect tax that has replaced many Indirect Taxes in India. The Goods and Service Tax Act was passed in Parliament on 29th March 2017. The act came into effect on 1st July 2017, Goods and Services tax law in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition.

In simple words, Goods and Service Tax (GST) is an indirect tax levied on the supply of goods and services. This law has replaced many indirect tax laws that previously existed in India.

GST is one indirect tax for the entire country. Under the GST regime, the tax is levied at every point of sale. In the case of intra-state sales, Central GST (CGST) and State GST (SGST) are charged. Inter-state sales are chargeable to Integrated GST (IGST).

There are 3 taxes applicable under this system: CGST, SGST, and IGST.

• CGST: Collected by the Central Government on an intra-state sale (for example, transaction happening within Maharashtra).
• SGST: Collected by the State Government on an intra-state sale (for example, transaction happening within Maharashtra).
• IGST: Collected by the Central Government for inter-state sale (for example, Maharashtra to Tamil Nadu).

If a customer has multiple GST registration numbers (one CIF linked to multiple GST registration numbers), the user will be able to charge GST and issue invoices on a particular GST number as required or as per the customer’s request.

This module allows the user to identify which taxes can be applied between CGST and SGST, or IGST. The system will automatically calculate these taxes using new routines.

In line with the GST requirements of India, enhancements are done in the TAXGST module and other modules of Temenos Transact.

The GSTIN is captured in the CUSTOMER application as legal Id docs.

A soft property class has been introduced, which is mandatory across product lines of INMB to capture GSTIN at the arrangement level, which is used for AA-related charges.

Provisions have been introduced in select applications, which will be used to capture GSTIN at the transaction level.

New fields have been introduced in the TAXREG.PARAMETER application to store the GSTIN of the bank or branch, which is used in GST processing.

New fields have been introduced in the TAXREG.GST.DETAILS application to store the GSTIN of the transaction and IRN.

This module also allows the user to apply the GST tax for transactions involving currency conversions using the PAYMENT.ORDER application.

For foreign currency conversions, GST is calculated as a two-step process:

1. Calculate the conversion amount in India Rupees (INR), which will have the buy rate of INR against the converted currency, to arrive at the base amount for calculating GST.
2. Apply the Interstate Goods and Services Tax (IGST) or the Central Goods and Services Tax (CGST) + State Goods and Services Tax (SGST).

Banks are able to calculate the split tax for the FUNDS.TRANSFER and MM.MONEY.MARKET applications.

This module also allows banks to collect the GST tax from charges, as part of the cheque issue process and from charges levied on an account.

The bank may levy a charge or charges as part of the cheque issue process to account(s) of customer(s). These charges are subject to GST and the same has to be collected as defined in the GST Act(s). The cheque issue process is managed through the following applications:

• CHEQUE.ISSUE.
• AC.CHARGE.REQUEST.
• PAYMENT.STOP.
• CHEQUE.COLLECTION.

The bank also may levy a charge or charges as part of the SWIFT transactions or an ad-hoc charge which will be charged to the account(s) of the customer(s). These charge or charges are subject to GST and the same has to be collected as defined in the GST Act(s).

The CHEQUE.ISSUE application supports the collection of multiple taxes for a single charge. The Goods and Services Tax module has been enhanced to support GST transactions (as applicable to India) initiated from the CHEQUE.ISSUE application. The mapping details are provided between the CHEQUE.ISSUE and TAXREG.GST.DETAILS applications, to ensure that necessary transaction details are available in the TAXREG.GST.DETAILS application.

This module has been enhanced to support the GST transactions (as applicable to India) initiated from the AC.CHARGE.REQUEST application. The mapping details are provided between the AC.CHARGE.REQUEST and TAXREG.GST.DETAILS applications, to ensure that the necessary transaction details are available in the TAXREG.GST.DETAILS application.

This module has been enhanced to support the GST transactions (as applicable to India) initiated from the PAYMENT.STOP application. The mapping details are provided between the PAYMENT.STOP and TAXREG.GST.DETAILS applications, to ensure that the necessary transaction details are available in the TAXREG.GST.DETAILS application.

The CHEQUE.COLLECTION application supports the collection of multiple taxes for a single charge. This module has been enhanced to support GST transactions (as applicable to India) initiated from the CHEQUE.COLLECTION application. The mapping details are provided between the CHEQUE.COLLECTION and TAXREG.GST.DETAILS applications, to ensure that the necessary transaction details are available in the TAXREG.GST.DETAILS application.

This module also enables banks to manage the GST exemption of transactions made by an assessee whose GSTIN is issued for an entity located in the Special Economic Zone (SEZ) and to support the refund of commission and GST, or GST alone, which was collected earlier.

Any transaction done by an assessee whose GSTIN is issued for an entity located in SEZ is exempted and no GST tax will be levied.

This module has been enhanced to support GST transactions (as applicable to India) where the place of business is located in SEZ. In addition, for customers having GSTINs which are not related to SEZ, the system will identify whether GSTIN belongs to SEZ or not. Modifications have been done to an existing routine, based on GSTIN, if identified as SEZ GSTIN.

The refund of GST collected can be initiated from the PAYMENT.ORDER application.

This module has been enhanced to support the refund of commission and GST or GST alone, which was collected earlier, and such details are available in the TAXREG Gst Details from the PAYMENT.ORDER application. A new version of the PAYMENT.ORDER application has been created, and this version is linked in the “Refund via PO” link that has been added as drill-down version of the REFUND.GST enquiry output.

The refund of the collected GST can also be initiated through the FUNDS.TRANSFER application.

The FUNDS.TRANSFER,REFUND.FEES version has been introduced to allow users to perform a refund of the GST tax using FUND.TRANSFER application. This version is linked in the “Refund via FT” link that has been added as drill-down version of the REFUND.GST enquiry output.

The refund to tax transactions is also supported for GST sweep transactions.

When refund of commission or tax is done using designated version of FT, the refund FT details are also stored in the TAXREG.GST.DETAILS application. Based on the switch value in the TAXREG.PARAMETER, the refund FT details will either be updated in TAXREG.GST.DETAILS or not.

The Block Refund Update field has been added to the TAXREG.PARAMETER application, and the allowed values are YES or NO. If set to YES, the refund FT details will not be updated in the TAXREG.GST.DETAILS application and if it set to NO, the refund FT details will not be updated.

Using this functionality, banks will be able to control, whether the refund FT details should be updated in the TAXREG.GST.DETAILS or not.