Imports Configuration for GST

Skip to end of metadata

 Created by Minu Shaw, last modified on Oct 04, 2018
Go to start of metadata
Purpose
The Purpose of this page is to clarify Imports process and configuration for GST and to resolve common
errors during imports transactions.
As per the model GST law, for imports:
- to clear the goods from the customs, custom duties has to be paid for custom clearance.
- the customs invoice consists of the Basic Customs Duty (BCD), IGST, Compensation CESS, Education
Cess, Secondary and Higher Education Cess and in the GST regime.
- to create the customs invoice in MIRO, Basic customs duty, EC and SHEC is derived from the delivery
cost lines.
- IGST is computed on the Basic customs duty + assesseble value + EC + SHEC.
- CESS quantity based is calculated on quantity in customes invoice.

Overview
Customers have implemented below GST notes for Imports scenario:
2458404 - GST India: Import
2491302 - GST India: Import Cess
2482200 - GST India - DDIC activity and configurations for GST compensation CESS
This document covers the configuration to set up Imports process for GST.

Imports Configuration - GST

1. Create Condition types
a. Create JIMN (Non-deductible reference) and JIMD (Deductible reference) condition types.
b. Create JINC (Non-deductible referece) and JIDC (Deductible reference) condition types for
Compensation Cess.
 Create JIMN, JINC, JIDC similar to JIMD.

c. Create ZIQN (Non-deductible reference) and ZIQD (Deductible reference) quantity based condition types
for Compensation Cess referring below screenshot.
 Note: -Kindly note that the above condition types are reference condition types, customers can
create their own condition types.

2. Classify the condition types

a. For TAXINN tax procedure, assign conditions types (JIMD, JIMN, JIDC, JINC, ZIQD, ZIQN) in the below
path:
SPRO > Logistics-General > Tax on Goods Movements > India > Basic Settings > Determination of
Excise Duty >
Maintain Excise Defaults (J_1IEXCDEF table)

b. For Imports Pricing Procedure, classify your custom duty condition (JCDB) in the below path:
SPRO > Logistics-General > Tax on Goods Movements > India > Basic Settings > Determination of
Excise Duty >
Maintain Excise Defaults (J_1IEXCDEF table)

3. Create Account key

 Create accounting key for deductible import IGST condition and Compensation Cess in T.Code OBCN.

4. Change the Tax procedure

a. Click on new entries and enter the details as mentioned in the below screenshot in T.code OBQ3.
b. Kindly note that the Condition base formula (‘800’) which is entered in the below screen shot is for
indicative purpose.
Choose a number which is available in your namespace / landscape & implement the routine with the
logic mentioned below.
c. You can configure your own condition types and account key, which you have classified in the
J_1IEXCDEFN table.
d. Assign the NVV accounting key to the Non-deductible condition types.
e. Create the routine to handle assessable value by referring to the document ‘Note_2491302_Routine.pdf’
attached in the SAP Note 2491302 - GST India: Import Cess.

5. Imports Pricing Procedure

 Maintain condition types for Customs duty, Ecess and S&HEcess in import pricing procedure as delivery
conditions.

Computation of Customs Duty and Cess

As per the current legal clarification, tax calculation will happen as below:

Imports Process
1. Purchase Order: Create the import Purchase order with the JCDB condition and assign it to the customs
vendor.
Maintain ECESS and SHCESS conditions in the pricing procedure.
Use Zero tax code in the Invoice tab.
Here, M0 is zero tax code.
2. Customs MIRO: Create the customs invoice in transaction ‘MIRO’. A new field ‘Assessable Value’ is
added at the line item level of MIRO.
Use relevant tax code with correct rates.
The tax calculation with respect to assessable value will happen based on the routine logic. Taxes will be
calculated based on the above calculation.

Assessable field.
 NOTE: The above configuration will post IGST to 3 separate lines for each tax condition type. If you want
to post single IGST tax line,
use subtotal 6 for ECESS and SHCESSin the pricing procedure and implement the logic in imports
routine similar to 363 routine to modify condition value.
At the time of Customs MIRO, use zero tax code for ECESS and SHCESS.
3. Perform MIGO and MIRO (normal process).