A solution for Indian GST implementation for simple procurement scenario using TAXINN _ SAP Blogs

2/1/2020 A solution for Indian GST implementation for simple procurement scenario using TAXINN | SAP Blogs
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
https://blogs.sap.com/2017/06/08/a-solution-for-indian-gst-implementation-for-simple-procurement-scenario-using-taxinn/ 2/12