Truebell - Fin - Tax - Config - GST Tax

Configuration Document
Financial Accounting and Controlling

GOODS & SERVICE TAX
TRUEBELL MARKETING & DISTRIBUTION SERVICES PVT LTD
SAP S/4 HANA 1610 IMPLEMENTATION PROJECT
FINANCIAL ACCOUNTING AND CONTROLLING
CONFIGURATION DOCUMENT
GOODS & SERVICE TAX
Prepared by
SEAL INFOTECH PVT LTD
Truebell Marketing & Distribution Pvt Ltd _ Configuration Document _ FICO_GOODS & SERVICE TAXPage 1
GOODS & SERVICE TAX
CONTENTS Page Numbers

1. Goods & Service Tax - Introduction-------------------------------------------------------------------------------------------------------- 4
2. Overview of GST-------------------------------------------------------------------------------------------------------------------------------- 4
3. CONFIGURATION FOR Goods &Service Tax---------------------------------------------------------------------------------------------- 5
1.1 Define business places------------------------------------------------------------------------------------------------------------------ 5
1.2 Assign Business Places to Plants----------------------------------------------------------------------------------------------------- 9
1.3 Activate Business Place----------------------------------------------------------------------------------------------------------------- 9
1.4 Insert Regions--------------------------------------------------------------------------------------------------------------------------- 10
1.5 Business Partner Tax Number (IN3)------------------------------------------------------------------------------------------------ 11
4. Check Calculation Procedure--------------------------------------------------------------------------------------------------------------- 12
1.6 Access Sequences---------------------------------------------------------------------------------------------------------------------- 12
1.7 Define Condition Types--------------------------------------------------------------------------------------------------------------- 13
1.8 Define Procedures---------------------------------------------------------------------------------------------------------------------- 33
5. Create GL Accounts--------------------------------------------------------------------------------------------------------------------------- 34
6. Check and Change Settings for Tax Processing---------------------------------------------------------------------------------------- 35
7. Define Tax Accounts------------------------------------------------------------------------------------------------------------------------- 42
8. Define Tax Codes for Sales and Purchases--------------------------------------------------------------------------------------------- 61
9. Define Relation between Tax code/ Business Place/ GL Account----------------------------------------------------------------64
10. Classify Condition Types----------------------------------------------------------------------------------------------------------------- 78
11. Assign Tax Code to Company Codes-------------------------------------------------------------------------------------------------- 80
12. Maintain Tax Percentage against Tax code----------------------------------------------------------------------------------------- 81
13. Official Document Numbering (ODN)------------------------------------------------------------------------------------------------ 87
1.9 Maintain document class------------------------------------------------------------------------------------------------------------ 87
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1.10 Assign document types to document class--------------------------------------------------------------------------------------- 88
1.11 Maintain number group for Document Class------------------------------------------------------------------------------------92
1.12 Assign Number range group to Company Code, Business Place-------------------------------------------------------------92
1.13 Maintain Number Ranges for Official Document:------------------------------------------------------------------------------93
GOODS & SERVICE TAX
1. Goods & Service Tax - Introduction
The introduction of Goods and Services Tax (GST) would be a very significant step in the field of indirect
tax reforms in India. By amalgamating a large number of Central and State taxes into a single tax, it would
mitigate cascading or double taxation in a major way and pave the way for a common national market.
From the consumer point of view, the biggest advantage would be in terms of a reduction in the overall
tax burden on goods, which is currently estimated to be around 25%-30%. Introduction of GST would also
make Indian products competitive in the domestic and international markets. This would have a boosting
impact on economic growth. Last but not the least, this tax, because of its transparent and self-policing
character, would be easier to administer.
2. Overview of GST
The current Indirect tax regime in India provides for a complex tax environment due to multiplicity of
taxes, elaborate compliance obligations and tax cascading. To address such problems, a comprehensive
‘consumption tax’ levied on the supply of all goods and services has been proposed which is known as
GST.
GST would subsume majority of Indirect taxes, thus, eliminating need for different Indirect tax
legislations. Further, GST aims at providing a seamless credit chain by providing for cross utilization of
credit (inter se goods and services) and minimal credit restrictions.
The motto of the GST regime is ‘One Tax One Market’, which aims at providing a cohesive tax approach
across India.
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3. CONFIGURATION FOR Goods &Service Tax
1.1 Define business places
The standard solution given by SAP is based on the concept of BUSINESS PLACE. The GST registration
number is assigned to this business place. If a company has multiple plants/sales offices etc in one state
from where the supply of goods or services is made, then it is sufficient if it has one business place and
has all the plants/sales offices assigned to that. Every logistics related transaction originating in the
plant/sales office – will have the GSTN in the FI document because these are assigned to that business
place, which in turn has the GST registration number at the tax line item level.
Since the purchases and sales have the corresponding tax amount tracked at the GST registration number
level, the GST amount can be tracked for each and every business place by configuring separate GL
accounts for each business place. This makes the reporting easy for each business place.
SPRO Cross-Application Components  General Application Functions Business

Menu Path
Place Define Business Places
Transaction Code SPRO
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1.2 Assign Business Places to Plants
We assign business places to plants. By doing so, the system automatically derives the default business
place when you post a tax-relevant document in Materials Management (MM).
SPRO  Cross-Application Components  General Application Functions Business

Menu Path
PlaceAssign Business Places to Plants
1.3 Activate Business Place
We customize the system so that it posts value-added tax (VAT) or similar tax types, and generates the
associated tax returns on a level below the company code. This local entity is called the business place. In
addition to tax reporting, the business place can also be used to assign official document numbers to
outgoing documents.
By activating the business place and then defining business places and assigning them to sales offices and
plants in the following activities, we enable the system to automatically assign Financial Accounting (FI),
Sales and Distribution (SD), and Materials Management (MM) documents that contain a VAT item to a
business place. Each business place is then able to create its own tax returns.
SPRO  Cross-Application Components  General Application Functions Business

Menu Path
PlaceActivate Business Place
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1.4 Insert Regions
We enter the required regions in this step. The region is used for the following functions:
 Part of address
 Tax reporting in FI
 Pricing in SD (only for tax)
The usage can vary from country to country.
Menu Path SPRO  SAP NetWeaver  General settings Set CountriesInsert Regions
Transaction Code OVK2
Country Region Description

IN 1 Jammu and Kashmir
IN 2 Himachal Pradesh
IN 3 Punjab
IN 4 Chandigarh
IN 5 Uttarakhand
IN 6 Haryana
IN 7 Delhi
IN 8 Rajasthan
IN 9 Uttar Pradesh
IN 10 Bihar
IN 11 Sikkim
IN 12 Arunachal Pradesh
IN 13 Nagaland
IN 14 Manipur
IN 15 Mizoram
IN 16 Tripura
IN 17 Meghalaya
IN 18 Assam
IN 19 West Bengal
IN 20 Jharkhand
IN 21 Odisha
IN 22 Chhattisgarh
IN 23 Madhya Pradesh
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IN 24 Gujarat
IN 25 Daman and Diu
IN 26 Dadra and Nagar Hav.
IN 27 Maharashtra
IN 29 Karnataka
IN 30 Goa
IN 31 Lakshadweep
IN 32 Kerala
IN 33 Tamilnadu
IN 34 Puducherry
IN 35 Andaman and Nico.Is.
IN 36 Telangana
IN 37 Andhra Pradesh
1.5 Business Partner Tax Number (IN3)

SM30: V_TFKTAXNUMTYPE
SM30: V_TFKTAXNUMTYPEC
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4. Check Calculation Procedure
Calculation procedures containing the necessary specifications for the calculation and posting of taxes on
sales/purchases have already been defined in the standard SAP system for certain countries. Every
calculation procedure groups several tax types together into a condition type (for example, output tax or
input tax) in the calculation procedure, and determines calculation rules for it.
The calculation procedure determines for which amount the individual condition types are to be
calculated. This can be the base amount (total of the expense items and the revenue items) or a subtotal.
IMG  Financial Accounting (New)  Financial Accounting Global Settings (New) 

Menu Path
Tax on Sales/PurchasesBasic SettingsCheck Calculation Procedure
Transaction Code OBYZ
1.6 Access Sequences
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1.7 Define Condition Types
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1.8 Define Procedures
Truebell India Tax

Procedure.xlsx
Note: Please Update Attached Excel if we add any New Tax condition Types.
GOODS & SERVICE TAX
5. Create GL Accounts
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6. Check and Change Settings for Tax Processing
We make the necessary specifications for posting taxes. In doing this we specify under a process key the
following indicators:
 Tax type: Output tax, input tax, additional taxes, or "not tax-relevant" can be specified as the tax
type.
 Non deductibility of tax amounts: For this, tax amounts are marked as not deductible.
 Posting indicator: Here we specify whether the tax amount is posted separately or distributed to
expense or revenue items.
 Tax not relevant to cash discount (Not discount relevant): This indicator is set only for Canada. If
you select it, the system does not take into account the corresponding tax amount when
determining the tax base.
SPRO  Financial Accounting (New)  Financial Accounting Global Settings (New)

Menu Path  Tax on Sales/PurchasesBasic SettingsCheck and Change Settings for Tax
Processing
Transaction Code OBCN
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7. Define Tax Accounts
We specify the accounts to which the different tax types are to be posted. The system determines these
accounts for automatic postings.

Menu Path
 Tax on Sales/PurchasesPosting Define Tax Accounts
Transaction Code OB40
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8. Define Tax Codes for Sales and Purchases
We have defined a separate tax codes on sales/purchases code for each country (India) in which one of
our company codes is located. Each code contains one or more tax rates for the different tax types. If you
have to report tax-exempt or non-taxable sales to the tax authorities, you need to define a tax rate with
the value 0.

Menu Path
 Tax on Sales/PurchasesCalculationDefine Tax Codes for Sales and Purchases
Transaction Code FTXP
Purchase Tax codes
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Purchase Tax – Reverse Mechanism with Non Deduction Tax codes
Purchase Tax – Non Deduction Tax codes
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Purchase Tax – Reverse Mechanism Tax codes
Sales Tax Codes
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Import Purchase / Import Purchase Non Deduction
9. Define Relation between Tax code/ Business Place/ GL Account

T/code: SM30
Table / View: J_1IT030K_V
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10. Classify Condition Types
We specify which condition types we use for which sort of tax. The system uses this information when we
create a document from another one.
SPRO Logistics – General  Tax on Goods Movements India  Basic Settings

Menu Path
Determination of Excise Duty Classify Condition Types
GOODS & SERVICE TAX
11. Assign Tax Code to Company Codes
We assign the tax code for purchasing documents to the company codes where it will be used. Only carry
out this activity if you use condition-based excise determination.
SPRO Logistics – General  Tax on Goods Movements India  Basic Settings

Menu Path
Determination of Excise Duty Assign Tax Code to Company Codes
GOODS & SERVICE TAX
12. Maintain Tax Percentage against Tax code
Condition Type: JICG
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Condition Type: JISG
Condition Type: JIIG
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Condition Type: JICN
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Condition Type: JISN
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Condition Type: JIIN
Condition Type: JICR
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Condition Type: JISR
Condition Type: JIIR
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Condition Type: ZCRN
Condition Type: ZSRN
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Condition Type: ZIRN
Condition Type: JOCG
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Condition Type: JOSG
Condition Type: JOIG
13. Official Document Numbering (ODN)
1.9 Maintain document class
View: V_DOCCLS
T/code: SM30
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1.10 Assign document types to document class
View: J_1IG_V_T003_I
T/code: SM30
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1.11 Maintain number group for Document Class
View: J_1IG_V_NUMGRP
T/code: SM30
1.12 Assign Number range group to Company Code, Business Place
View: J_1IG_V_OFNUM
T/code: SM30
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1.13 Maintain Number Ranges for Official Document:
View: J_1IG_ODN
T/code: SNRO
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Configuration Document

Financial Accounting and Controlling

TRUEBELL MARKETING & DISTRIBUTION SERVICES PVT LTD

SAP S/4 HANA 1610 IMPLEMENTATION PROJECT

FINANCIAL ACCOUNTING AND CONTROLLING

GOODS & SERVICE TAX

SEAL INFOTECH PVT LTD

CONTENTS Page Numbers

3. CONFIGURATION FOR Goods &Service Tax---------------------------------------------------------------------------------------------- 5

1.1 Define business places------------------------------------------------------------------------------------------------------------------ 5

1.2 Assign Business Places to Plants----------------------------------------------------------------------------------------------------- 9

1.3 Activate Business Place----------------------------------------------------------------------------------------------------------------- 9

1.4 Insert Regions--------------------------------------------------------------------------------------------------------------------------- 10

1.5 Business Partner Tax Number (IN3)------------------------------------------------------------------------------------------------ 11

4. Check Calculation Procedure--------------------------------------------------------------------------------------------------------------- 12

1.6 Access Sequences---------------------------------------------------------------------------------------------------------------------- 12

1.7 Define Condition Types--------------------------------------------------------------------------------------------------------------- 13

1.8 Define Procedures---------------------------------------------------------------------------------------------------------------------- 33

6. Check and Change Settings for Tax Processing---------------------------------------------------------------------------------------- 35

7. Define Tax Accounts------------------------------------------------------------------------------------------------------------------------- 42

8. Define Tax Codes for Sales and Purchases--------------------------------------------------------------------------------------------- 61

9. Define Relation between Tax code/ Business Place/ GL Account----------------------------------------------------------------64

10. Classify Condition Types----------------------------------------------------------------------------------------------------------------- 78

11. Assign Tax Code to Company Codes-------------------------------------------------------------------------------------------------- 80

12. Maintain Tax Percentage against Tax code----------------------------------------------------------------------------------------- 81

13. Official Document Numbering (ODN)------------------------------------------------------------------------------------------------ 87

1.9 Maintain document class------------------------------------------------------------------------------------------------------------ 87

1.10 Assign document types to document class--------------------------------------------------------------------------------------- 88

1.11 Maintain number group for Document Class------------------------------------------------------------------------------------92

1.12 Assign Number range group to Company Code, Business Place-------------------------------------------------------------92

1.13 Maintain Number Ranges for Official Document:------------------------------------------------------------------------------93

1. Goods & Service Tax - Introduction

3. CONFIGURATION FOR Goods &Service Tax

1.1 Define business places

SPRO Cross-Application Components  General Application Functions Business

Transaction Code SPRO

1.2 Assign Business Places to Plants

SPRO  Cross-Application Components  General Application Functions Business

Transaction Code SPRO

1.3 Activate Business Place

SPRO  Cross-Application Components  General Application Functions Business

Transaction Code SPRO

1.4 Insert Regions

 Pricing in SD (only for tax)

The usage can vary from country to country.

Transaction Code OVK2

Country Region Description

1.5 Business Partner Tax Number (IN3)

4. Check Calculation Procedure

IMG  Financial Accounting (New)  Financial Accounting Global Settings (New) 

1.6 Access Sequences

1.7 Define Condition Types

1.8 Define Procedures

Truebell India Tax

6. Check and Change Settings for Tax Processing

SPRO  Financial Accounting (New)  Financial Accounting Global Settings (New)

7. Define Tax Accounts