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A Solution For Indian GST Implementation For Simple Procurement Scenario Using TAXINN - SAP Blogs PDF
A Solution For Indian GST Implementation For Simple Procurement Scenario Using TAXINN - SAP Blogs PDF
A Solution For Indian GST Implementation For Simple Procurement Scenario Using TAXINN - SAP Blogs PDF
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This is an attempt to incorporate the tax reformation in India- GST via a s
imple SAP solution using the existing provisions in ECC 6.0 EHP 6.
https://blogs.sap.com/2017/06/08/a-solution-for-indian-gst-implementation-for-simple-procurement-scenario-using-taxinn/ 1/11
8/22/2018 A solution for Indian GST implementation for simple procurement scenario using TAXINN | SAP Blogs
Brief Requirement:
Goods and Services Tax (GST) is an indirect tax throughout India to repl
ace existing multiple taxes levied by the central and state governments.
Applicable GST rates are determined by the combination Nature of Purch
ase and Harmonized System of Nomenclature (HSN) code assigned to m
aterial.
(Intra State)
of Painting contract
RATE %
2.5 2.5 5 *
BANDS*
6 6 12 *
9 9 18 *
14 14 28 *
https://blogs.sap.com/2017/06/08/a-solution-for-indian-gst-implementation-for-simple-procurement-scenario-using-taxinn/ 2/11
8/22/2018 A solution for Indian GST implementation for simple procurement scenario using TAXINN | SAP Blogs
Single registration per PAN and state of business for CGST, SGST and IGST
The scenario considered is a simple Procure to Pay cycle where Quotatio
ns received from the Vendor determine the Taxes applicable.
For complex Supply Chain scenarios where multiple goods movements, s
ubcontracting, consignment, etc. are involved, this might not be an e ci
ent solution for GST implementation. SAP recommended Notes and Patc
hes should be followed in this case.
Con guration Steps:
Steps t-code
Maintain Tax Codes for Excise Duties Using Condition Technique SM30 –
J_1ICONDTAX
1. Assign Tax Procedure to Country
T-code: OBBG
2. De ne Tax Access Sequence
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8/22/2018 A solution for Indian GST implementation for simple procurement scenario using TAXINN | SAP Blogs
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 acc
ess.
3. De ne Condition Types(Tax)
T-code: OBQ1 or OBYZ
Based on the available information the below listed GST related conditio
n types are created:
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8/22/2018 A solution for Indian GST implementation for simple procurement scenario using TAXINN | SAP Blogs
ND- non-deductible
4. Create Account Keys
T-code: OBCN
Create new Account keys for all conditions who need to be assigned indiv
idual GLs
Non-deductible conditions can be assigned to standard key NVV
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8/22/2018 A solution for Indian GST implementation for simple procurement scenario using TAXINN | SAP Blogs
5. De ne Tax procedure
T-code: OBQ3
Append your GST condition types to TAXINN tax procedure as shown bel
ow;
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
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8/22/2018 A solution for Indian GST implementation for simple procurement scenario using TAXINN | SAP Blogs
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
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8/22/2018 A solution for Indian GST implementation for simple procurement scenario using TAXINN | SAP Blogs
Complete this master data activity and maintain the required tax percent
ages 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 w
ill not a ect tax determination in PO.
Alert Moderator
8 Comments
You must be Logged on to comment or reply to a post.
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Former Member
PG
Former Member
Hi Mr.Archit,
Thanks for your e ort & the work done in simple way…
Thanks…
Phanikumar Valiveti
Phanikumar
Former Member
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8/22/2018 A solution for Indian GST implementation for simple procurement scenario using TAXINN | SAP Blogs
Former Member
Former Member
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.
Former Member
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 .
Sattaiah Gundu
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8/22/2018 A solution for Indian GST implementation for simple procurement scenario using TAXINN | SAP Blogs
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