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Part 1- GST Implementation Steps for Materials procurement for Deductible & Non-Deductible Taxes.

sagnikch
Explorer
4 weeks ago
549

 GST Implementation Steps for Materials for Deductible & Non-Deductible Taxes (Intra State & Inter State)

The GST Implementing Steps for Material Procurement for both Intrastate & Interstate Deductible & Intrastate & Interstate Non-Deductible scenarios.

The Deductible & Non Deductible concept is as below –

sagnikch_112-1749649749951.png

Let us see how do we configure the same in SAP S4HANA.

Step 1: Create Condition Tables

Tcode M/03

Create a new condition Table 793 (You can create you own 3 digit number apart from SAP reserved numbers)  with the following combination

sagnikch_113-1749649812965.png

In the Technical View make the following fields as Item Fields.

sagnikch_114-1749649839558.png

Step 2: Assignment of condition table into Access Sequence- Tcode: OBQ2

Assign the newly created Table into existing access sequence JGSI.

sagnikch_115-1749649886099.png

Insert the table 793 into the access sequence JGSI:

sagnikch_116-1749649908933.png

 

Check the fields under Access’s Table: 793

sagnikch_117-1749649937216.png

If any field is missing then press the field catalogue and select the field from the catalogue and choose the corresponding field either from the header/Item as per the condition record. In the case below LLAND is defined as a header field so choose LLAND from KOMK from the field catalogue.

KOMK is the header table and KOMP is the item table.

Region of Dlv Plant is to be me made as KOMP – WKREG

Vendor Classification is KOMP and has to be initialized.

sagnikch_118-1749649998051.png

Change the “Region of Dlv. Plant” Condition Field’s Document structure from KOMK to KOMP

sagnikch_119-1749650023173.png

Ref:  SAP Note 2407980 where WKREG is to be assigned to KOMP.

Step 3: Assignment of Access Sequence to condition types.

Prepare MM Condition types JICG, JISG resembling CGST & SGST for deductible Procurement.

Condition type JIIG resembling IGST for deductible procurement.

Condition types JICN, JISN resembling CGST & SGST for non deductible Procurement.

Condition type JIIN resembling IGST for non deductible procurement.

Tcode: OBQ1

Deductible Condition Types –  JICG, JISG, JIIG

Copy from SAP Standard Condition type MWVS

Condition Type : JISG - IN: State GST and assign JGSI access sequence.

sagnikch_120-1749650103342.png

Condition Type : JICG - IN: Central GST and assign JGSI access sequence.

sagnikch_121-1749650127328.png

Condition Type : JIIG - IN: Integrated GST and assign JGSI access sequence.

sagnikch_122-1749650163030.png

Non- Deductible Condition Types –  JICN, JISN, JIIN

Condition Type : JICN - IN: Central GST-ND and assign JGSI access sequence.

sagnikch_123-1749650201007.png

Condition Type : JISN - IN: State GST-ND and assign JGSI access sequence

sagnikch_124-1749650232635.png

Condition Type : JIIN - IN: Integrated GST-ND and assign JGSI access sequence.

sagnikch_125-1749650255615.png

Step 4: Tax Procedure creation:

Tcode: OBQ3

sagnikch_126-1749650286198.png

Step 5: Assignment of Tax condition types to Tax Pricing Procedure

sagnikch_127-1749650326278.png

Step 6: Assignment of Tax Procedure to Company Code:

Tcode: OBBG

sagnikch_128-1749650355220.png

Step 7: Creation of Tax Codes:

Deductible Tax Code created IP

 sagnikch_129-1749650393385.png

Non-Deductible Tax Code created I0

sagnikch_130-1749650515347.png

Step 8: Account Key to be assigned to GL in OB40

Account Key JIC for JICG

sagnikch_131-1749650679432.png

sagnikch_132-1749650701923.png

Account key JIS for State SGST

sagnikch_133-1749650741674.png

sagnikch_134-1749650953325.png

Account Key JII – JIIG (Integrated).

sagnikch_135-1749651131725.png

sagnikch_136-1749651154843.png

Step 9: Creation of Chapter ID’s

Tcode: J1ID

sagnikch_137-1749651195805.png

Step 10: Extension of Chapter ID to Material Code:

sagnikch_138-1749651264152.png

Step 11: Set Tax Indicator for Material: Tcode OMKK

sagnikch_139-1749651298878.png

Step 12: Extension of Tax Category to Material Code:

sagnikch_140-1749651327931.png

Step 13: Condition Record Maintenance –

Tcode FV11 –

Case 1: Within the State Material procurement & Deductible.

 Tax code to be used IP.

Condition Type: JISG – 2.5%

sagnikch_141-1749651378737.png

sagnikch_142-1749651403018.png

Condition Type  JICG 2.5 %

sagnikch_143-1749651437520.png

sagnikch_144-1749651470648.png

Scenario Test: Within the State Procurement of Material–

Purchase Order with Tax Code IP

sagnikch_145-1749651509633.png

Tax Calculation in PO –

sagnikch_146-1749651530323.png

GRN – No impact of taxes on Inventory during GRN

sagnikch_147-1749651551010.png

Stock Account Dr +

GR/IR Clearing Cr-

Invoice Booking –

sagnikch_148-1749651590032.png

Vendor Acc Cr –

GR/IR Clearing Dr+

CGST & SGST Dr +

Case 2: Inter State Material procurement & Deductible

Tax code to be used IP.

Condition Type: JIIG –

 sagnikch_149-1749651665665.png

sagnikch_150-1749651686451.png

Scenario Test: Outside the State procurement.

Purchase Order with Tax Code IP

 sagnikch_151-1749651726262.png

sagnikch_152-1749651774332.png

GRN:

 sagnikch_153-1749651795650.png

Stock Account DR +

GR/IR Clearing Account CR –

MIRO:

 sagnikch_154-1749651854532.png

Vendor Acc Cr –

GR/IR Clearing Account DR +

IGST Input DR+ 

Case 3:  Within the State Material procurement & Non-Deductible.

Tax code to be used I0.

Condition Type: JISN – 2.5%

sagnikch_155-1749651914607.png

sagnikch_156-1749651958193.png

Condition Type: JICN – 2.5%

sagnikch_157-1749652107065.png

sagnikch_158-1749652113890.png

Scenario Test: Within the State

Purchase Order with Tax Code I0

sagnikch_159-1749652152414.png

sagnikch_160-1749652157372.png

GRN –

sagnikch_161-1749652187294.png

Stock Account DR+

GR/IR Clearing CR-

The Tax amount is added into the Inventory cost.

MIRO:

sagnikch_162-1749652219294.png

Vendor Account Cr-

GR/IR Clearing account DR +

 

Case 4: Inter State Material procurement & Non-Deductible.

 Tax code to be used I0.

Condition Type: JIIN – 12%

 sagnikch_163-1749652257299.png

sagnikch_164-1749652293211.png

GRN:

 sagnikch_165-1749652327309.png

Stock Account DR+

GR/IR Clearing CR-

Tax amount is added into the inventory cost.

MIRO:

sagnikch_166-1749652392665.png

Vendor Account Cr-

GR/IR Clearing Account DR +

Regards,

Sagnik. 

 

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