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    Sample Document For Tax

    Uploaded by

    Prakash Palanisamy
    The document describes an SAP solution for implementing GST in India using the TAXINN tax procedure for a simple procurement scenario. It outlines the key SAP configuration steps needed such as defining tax codes, condition types, account keys, and maintaining tax records to enable GST taxes to be calculated in purchase orders.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Sample Document For Tax

    Uploaded by

    Prakash Palanisamy
    46 views16 pages
    The document describes an SAP solution for implementing GST in India using the TAXINN tax procedure for a simple procurement scenario. It outlines the key SAP configuration steps needed such as defining tax codes, condition types, account keys, and maintaining tax records to enable GST taxes to be calculated in purchase orders.

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    Tax on sales and purchase

    Original Title

    Sample Document for Tax

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    The document describes an SAP solution for implementing GST in India using the TAXINN tax procedure for a simple procurement scenario. It outlines the key SAP configuration steps needed such as defining tax codes, condition types, account keys, and maintaining tax records to enable GST taxes to be calculated in purchase orders.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    46 views16 pages

    Sample Document For Tax

    Uploaded by

    Prakash Palanisamy
    The document describes an SAP solution for implementing GST in India using the TAXINN tax procedure for a simple procurement scenario. It outlines the key SAP configuration steps needed such as defining tax codes, condition types, account keys, and maintaining tax records to enable GST taxes to be calculated in purchase orders.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    Former Member
    June 8, 2017 4 minute read

    A solution for Indian GST implementation for simple procurement scenario using
    TAXINN
    Follow RSS feed Like

    9 Likes 20,018 Views 8 Comments

    This is an attempt to incorporate the tax reformation in India- GST via a simple SAP solution using the existing provisions in ECC 6.0 EHP 6.

    Brief Requirement:

    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

    Import Purchase BCD, CVD, AED, CESS, ECESS IGST

    Inward branch transfer Excise/ No Excise No Tax


    (Intra State)

    Inward branch transfer Excise/ No Excise IGST


    (Inter State)

    Job work expense No tax, only VAT in case CGST + SGST


    of Painting contract

    Service expense Service Tax CSGT + SGST/ IGST

    GST CGST SGST IGST UGST


    RATE %
    BANDS* 2.5 2.5 5 *

    6 6 12 *

    9 9 18 *

    14 14 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 e ci
    ent solution for GST implementation. SAP recommended Notes and Patches should be followed in this case.

    Con guration Steps:

    Steps t-code

     Assign Tax Procedure to Country  OBBG

     De ne Tax Access Sequence  OBQ2/OBYZ

     De ne Condition Types(Tax)  OBQ1/OBYZ

     Create account keys  OBCN

     De ne Tax procedure  OBQ3/OBYZ

     Assign GL to account keys & GL  OB40

     Create Tax code in Country  FTXP

     Maintain Tax Codes for Excise Duties Using Condition Technique  SM30 – J_1ICONDTAX

     Maintain Tax Condition Records  FV11

     
     

    1. Assign Tax Procedure to Country

    T-code: OBBG

    2. De ne Tax Access Sequence

    T-code: OBQ2

    Copy Access sequence JTAX and create new sequence ZGST.

    Include table 03 for condition value determination based on Country and Tax code.

    Non-deductible tax percentages will be determined based the last table in access.
    3. De ne Condition Types(Tax)

    T-code: OBQ1 or OBYZ

    Based on the available information the below listed GST related condition types are created:

    Tax type Condition Type Description

    CGST JICG IN: Central GST

    SGST JISG IN: State GST

    IGST JIIG IN: Integrated GST

    UGST JIUG IN: UnionTer. GST

    CGST JICN IN: Central GST – ND

    SGST JISN IN: State GST – ND


    IGST JIIN IN: Integrated GST –
     ND

    UGST JIUN IN: UnionTer. GST –


     ND

    CGST JICR IN: CGST Rev. Charge

    SGST JISR IN: SGST Rev. Charge

    IGST JIIR IN: IGST Rev. Charge

    IGST JIMD IN: Import GST deduct

    IGST JIMN IN: Import GST – ND

    ND- non-deductible
    4. Create Account Keys

    T-code: OBCN

    Create new Account keys for all conditions who need to be assigned individual GLs
    Non-deductible conditions can be assigned to standard key NVV

    5. De ne Tax procedure

    T-code: OBQ3

    Append your GST condition types to TAXINN tax procedure as shown below;
    6. Assign GL to account keys & GL

    T-code: OB40

    Assign GLs to transaction key at chart accounts level. Separate GLs can be assigned for each Tax code.

    7. Create Tax Codes in Country IN 
    T-code: FTXP

    Create tax codes in Country India

    Tax codes are required to be captured in a TR separately;
    FTXP-Tax Code-Transport-Export and save in TR

    8. Maintain Tax Codes for Excise Duties Using Condition Technique

    T-code: SM30

    table: J_1ICONDTAX

    This is an important step as we are using TAXINN tax procedure. If this is not maintained tax code does not work in PO.

    9. Maintain Tax Condition Records

    T-code: FV11

    Complete this master data activity and maintain the required tax percentages according to you access sequence/key combination for them to be 
    determined in PO.
     

    The below message may appear while maintaining Condition Record;

    Tax ID G2 cannot be checked (there are several/no tax records)
    Message no. VK242

    This is because we did not maintain any Tax Percent. Rate in FTXP. This will not a ect tax determination in PO.
    Assigned tags

    Goods and Services Tax (GST India) | materials management | sap mm | SAP MM GST(India) |

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    8 Comments

    You must be Logged on to comment or reply to a post.

    Pavan Golesar

    June 16, 2017 at 11:48 am


    Simple and Good!

    Thanks for insight on GST.

    PG

    Like (0)

    Former Member

    June 24, 2017 at 12:27 pm


    Hi Mr.Archit,

    Thanks for your e ort & the work done in simple way…

    And, expecting the same on Subcontracting, Consignment & STO processes.

    Thanks…

    Like (0)

    Phanikumar Valiveti

    July 27, 2017 at 5:26 am


    Good and Simple document to understand..

    But SM30 Tax code?GL maintenance should be table J_1iT030K_V is missing..

    Phanikumar

    Like (0)

    Former Member

    October 18, 2017 at 5:55 am


    Thank you for sharing this simple documentation about GST implementation using TAXINN. So with the help of SAP solutions or SAP tax
    procedures, you can now embrace the GST with minimal disruption to your business. You can enroll yourself in SAP GST training for deeply
    clearing the concepts of GST

    Like (0)
    Former Member

    November 9, 2017 at 3:55 am


    Thanks for sharing the valuable information about GST implementation.

    Like (0)

    Former Member

    December 7, 2017 at 11:23 am


    I need small clari cation in your example you have take 5% tax code that means I need to create multiple tax code for di erent-di erent  % like
    5%, 12%,18%  and 28% etc. and have to maintain in FV11 and FTXP.

    Like (0)

    Former Member

    March 21, 2018 at 11:56 am


    what is solution of ”  tax code 05 (for import) does not exist in procedure taxin IN. but while tax code 05 already maintained in taxin .

    Like (0)

    Sattaiah Gundu
    April 13, 2018 at 7:28 am
    Really Excellent and Useful document.

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