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    A Solution For Indian GST Implementation For Simple Procurement Scenario Using TAXINN

    Uploaded by

    Sai Parekh
    This document outlines the configuration steps needed to implement GST tax reform in India using SAP. Key steps include: 1. Define new tax condition types for CGST, SGST, IGST, and UGST taxes. 2. Create a new tax access sequence to determine taxes based on country, tax code, and other attributes. 3. Set up new general ledger accounts and account determination keys for the new tax types. 4. Add the new Indian tax codes and tax condition types to the existing TAXINN tax procedure. 5. Maintain the tax percentages that will be used to calculate each new tax in the procurement process.

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    Download as DOCX, PDF, TXT or read online from Scribd

    A Solution For Indian GST Implementation For Simple Procurement Scenario Using TAXINN

    Uploaded by

    Sai Parekh
    71 views9 pages
    This document outlines the configuration steps needed to implement GST tax reform in India using SAP. Key steps include: 1. Define new tax condition types for CGST, SGST, IGST, and UGST taxes. 2. Create a new tax access sequence to determine taxes based on country, tax code, and other attributes. 3. Set up new general ledger accounts and account determination keys for the new tax types. 4. Add the new Indian tax codes and tax condition types to the existing TAXINN tax procedure. 5. Maintain the tax percentages that will be used to calculate each new tax in the procurement process.

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    This document outlines the configuration steps needed to implement GST tax reform in India using SAP. Key steps include: 1. Define new tax condition types for CGST, SGST, IGST, and UGST taxes. 2. Create a new tax access sequence to determine taxes based on country, tax code, and other attributes. 3. Set up new general ledger accounts and account determination keys for the new tax types. 4. Add the new Indian tax codes and tax condition types to the existing TAXINN tax procedure. 5. Maintain the tax percentages that will be used to calculate each new tax in the procurement process.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    71 views9 pages

    A Solution For Indian GST Implementation For Simple Procurement Scenario Using TAXINN

    Uploaded by

    Sai Parekh
    This document outlines the configuration steps needed to implement GST tax reform in India using SAP. Key steps include: 1. Define new tax condition types for CGST, SGST, IGST, and UGST taxes. 2. Create a new tax access sequence to determine taxes based on country, tax code, and other attributes. 3. Set up new general ledger accounts and account determination keys for the new tax types. 4. Add the new Indian tax codes and tax condition types to the existing TAXINN tax procedure. 5. Maintain the tax percentages that will be used to calculate each new tax in the procurement process.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 9

    A solution for Indian GST implementation

    for simple procurement scenario using


    TAXINN
    FollowRSS feedLike
    11 Li kes 26,725 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 Syste
    m 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 % 2.5 2.5 5 *
    BANDS*
    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 Vend
    or determine the Taxes applicable.

    For complex Supply Chain scenarios where multiple goods movements, subcontracting, consignmen
    t, etc. are involved, this might not be an efficient solution for GST implementation. SAP recommende
    d Notes and Patches should be followed in this case.

    Configuration Steps:

    Steps t-code

    Assign Tax Procedure to Country OBBG

    Define Tax Access Sequence OBQ2/OBYZ

    Define Condition Types(Tax) OBQ1/OBYZ

    Create account keys OBCN

    Define 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. Define 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. Define 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. Define 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 c
    ode.

    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 d
    oes 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 acces
    s 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 affect tax determin
    ation in PO.

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