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Former Member
June 8, 2017
4 minute read
A solution for Indian GST implementation for simple
procurement scenario using TAXINN
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13 Likes 37,732 Views 9 Comments
This is an attempt to incorporate the tax reformation in India- GST via a simple SAP solution using the existi
ng 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 No
menclature (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
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Inward branch transfer
(Intra State)
Excise/ No Excise
No Tax
Inward branch transfer
(Inter State)
Excise/ No Excise
IGST
Job work expense
No tax, only VAT in case
of Painting contract
CGST + SGST
Service expense Service Tax CSGT + SGST/ IGST
GST
RATE %
BANDS*
CGST SGST IGST UGST
2.5 2.5 5 *
*Mapped to Material HSN
(Harmonized System Nomenclature)
6 6 12 *
9 9 18 *
14 14 28 *
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 deter
mine the Taxes applicable.
For complex Supply Chain scenarios where multiple goods movements, subcontracting, consignment, etc. a
re involved, this might not be an e cient solution for GST implementation. SAP recommended Notes and Pa
tches 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
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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)
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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
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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
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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
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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
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T-code: FV11
Complete this master data activity and maintain the required tax percentages according to you access sequ
ence/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 P
O.
Alert Moderator
Assigned tags
Goods and Services Tax (GST India) | materials management | sap mm | SAP MM GST(India) |
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9 Comments
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Pavan Golesar
June 16, 2017 at 11:48 am
Simple and Good!
Thanks for insight on GST.
/
PG
Like (0)
Manikandan K A
June 24, 2017 at 12:27 pm
Hi Mr.Archit,
https://blogs.sap.com/2017/06/08/a-solution-for-indian-gst-implementation-for-simple-procurement-scenario-using-taxinn/ 9/12
2/1/2020 A solution for Indian GST implementation for simple procurement scenario using TAXINN | SAP Blogs
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
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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)
SHASHI maurya
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.
Like (0)
Ramanathan Murugesan
October 6, 2019 at 1:14 pm
Beautiful document. Thanks for sharing.
Like (0)
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