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Part 2- GST Implementation Steps for Services for Deductible & Non-Deductible Taxes

sagnikch
Explorer
a month ago
467

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

Lets see how do we configure the same in SAP S4HANA.

Step 1: Create Condition Tables

Tcode M/03

Create a new condition Table 797 (You can create you own 3 digit number apart from SAP reserved numbers)  with the following combination.

sagnikch_0-1749717302269.png

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

sagnikch_1-1749717302276.png

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

Assign the newly created Table into existing access sequence JGSI.

sagnikch_2-1749717302285.png

Insert the table 797 into the access sequence JGSI:

sagnikch_3-1749717302288.png

Check the fields under Access’s Table: 797

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_4-1749717302294.png

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

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_5-1749718733631.png

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

sagnikch_6-1749718733642.png

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

sagnikch_7-1749718733652.png

Non- Deductible Condition Types –  JICN, JISN, JIIN

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

 sagnikch_8-1749718733662.png

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

 

sagnikch_9-1749718733671.png

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

sagnikch_10-1749718733681.png

Step 4: Tax Procedure creation:

Tcode: OBQ3

sagnikch_11-1749718733689.png

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

sagnikch_12-1749718733702.png

Step 6: Assignment of Tax Procedure to Company Code:

Tcode: OBBG

sagnikch_13-1749718733708.png

Step 7: Creation of Tax Codes:

Deductible Tax Code IP

 sagnikch_14-1749718733718.png

 

Non-Deductible Tax Code I0

 

sagnikch_15-1749719080199.png

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

Account Key JIC for JICG

sagnikch_16-1749719080211.png

sagnikch_17-1749719080216.png

Account key JIS for State SGST

sagnikch_18-1749719080223.png

sagnikch_19-1749719080229.png

Account Key JII – JIIG (Integrated).

sagnikch_20-1749719080237.png

sagnikch_21-1749719080241.png

Step 9: Creation of Chapter ID’s

Tcode: J1ID

sagnikch_22-1749719080245.png

Step 10: Extension of Chapter ID to Service Activity under Tax Tariff code:

 sagnikch_23-1749719080256.png

Step 11: Condition Record Maintenance –

Tcode FV11 –

Case 1: Within the State Service procurement & Deductible.

Tax code to be used IP.

Condition Type: JISG – 2.5%

sagnikch_24-1749719080260.png

sagnikch_25-1749719080265.png

Condition Type  JICG 2.5 %

sagnikch_26-1749719080271.png

sagnikch_27-1749719080278.png

Scenario Test: Within the State Procurement of Service–

Purchase Order with Tax Code IP

User has to manually enter the SAC (“Service Activity Code”) under the India Tab in the Purchase Order.

sagnikch_28-1749719080291.png

Tax Calculation in PO –

sagnikch_29-1749719080306.png

sagnikch_30-1749719080316.png

SES – In a service PO after a Service Entry is created system par alley creates a GRN in background.

sagnikch_31-1749719080323.png

sagnikch_32-1749719080336.png

sagnikch_33-1749719440018.png

Service GL Account Dr +

GR/IR Clearing Cr-

Invoice Booking –

sagnikch_34-1749719440026.png

Vendor Acc Cr –

GR/IR Clearing Dr+

CGST & SGST Dr +

Case 2: Inter State Service procurement & Deductible

Tax code to be used IP.

Condition Type: JIIG –

 sagnikch_35-1749719440029.png

sagnikch_36-1749719440034.png

Scenario Test: Outside the State procurement.

Purchase Order creation

sagnikch_37-1749719440045.png

Enter the Tax Code IP

 sagnikch_38-1749719440054.png

sagnikch_39-1749719440060.png

SES – In a service PO after a Service Entry is created system paralley creates a GRN in background.

 sagnikch_40-1749719440069.png

   sagnikch_41-1749719440074.png

Service GL Account DR +

GR/IR Clearing Account CR –

MIRO:

sagnikch_42-1749719440082.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_43-1749719440087.png

sagnikch_44-1749719440091.png

Condition Type: JICN – 2.5%

Tax code to be used I0.

sagnikch_45-1749719440094.png

sagnikch_46-1749719440098.png

Scenario Test: Within the State

Purchase Order with Tax Code I0

Enter the Control code manually in the Invoice Tab.

sagnikch_47-1749719440106.png

sagnikch_48-1749719440111.png

SES –

sagnikch_49-1749719897539.png

sagnikch_50-1749719897548.png

Stock Account DR+

GR/IR Clearing CR-

The Tax amount is added into the Inventory cost.

MIRO:

sagnikch_51-1749719897555.png

Vendor Account Cr-

GR/IR Clearing account DR +

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

Tax code to be used I0.

Condition Type: JIIN – 12%

sagnikch_52-1749719897558.png

sagnikch_53-1749719897561.png

Scenario Test: Outside the State

sagnikch_54-1749719897571.png

sagnikch_55-1749719897577.png

SES:

 sagnikch_56-1749719897587.png

sagnikch_57-1749719897596.png

Stock Account DR+

GR/IR Clearing CR-

Tax amount is added into the inventory cost.

 

MIRO:

 sagnikch_58-1749719897603.png

Vendor Account Cr-

GR/IR Clearing Account DR +

Regards,

Sagnik.