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Part 3- GST Implementation Steps for Import Procurement Deductible & Non-Deductible Taxes

sagnikch
Explorer
‎2025 Jun 17 8:58 AM
523

GST Implementation Steps for Import Procurement Deductible & Non-Deductible Taxes

 The GST Implementing Steps for Import Procurement, lets see how do we configure the same in SAP S4HANA.

Step 1: Creation of Deductible & Non Deductible Tax Condition Types

Condition Type : JIMD IN: Import GST Deduct and assignment to access sequence JGSI

sagnikch_0-1750054904372.png

Condition Type : JIDC Imp Cmp cess Deduct and assignment to access sequence JGSI

sagnikch_1-1750054904379.png

Condition Type: JIMN IN: Import GST ND and assignment to access sequence JGSI

sagnikch_2-1750054904386.png

Condition Type: JINC Imp Cmp cess ND and assignment to access sequence JGSI

 sagnikch_3-1750054904392.png

Step 2: Tax Procedure creation:

Tcode: OBQ3

sagnikch_4-1750054904398.png

Step 3: Assignment of Tax condition types to Tax Pricing Procedure

sagnikch_5-1750054904407.png

Refer to SAP Note – 2491302 for implenting the subroutine to be added to the import conditions of the Tax pricing procedure. We have created a subroutine 905, you can choose to add your own 3 digit number out of SAP’s reserved numbers.

sagnikch_6-1750054904418.png

Step 4: Assignment of Tax Procedure to Company Code:

Tcode: OBBG

sagnikch_7-1750054904422.png

Step 5: Creation of Tax Codes:

A tax code would be required for the purchase order creation with 0% tax code.

H5 - Import - IGST 0%. ( You can create with your own choice of alphabet with your preference)

 sagnikch_8-1750054904429.png

A  Taxcode (For deductible taxes) is required for the Tax calculation to be used during the Customs MIRO tax calculation.

 sagnikch_9-1750054904436.png

A Taxcode (For Non-deductible taxes) is required for the Tax calculation to be used during the Customs MIRO tax calculation.

 sagnikch_10-1750054904442.png

Different Tax codes have to be created on the basis of the tax % as required, in the example shown with only 3 tax codes.

Step 6: Account Key to be assigned to GL in OB40

Account Key JIM for JIMD

sagnikch_11-1750055152884.png

sagnikch_25-1750055383992.png

Step 7:  Classify Condition Types –

Classify the tax condition types in the view - J_1IEXCDEFN through the transaction SM30 for Tax Pricing Procedure.

sagnikch_13-1750055152891.png

Classify the PO Pricing condition types in the view - J_1IEXCDEFN through the transaction SM30 for Import PO Pricing Procedure.

sagnikch_14-1750055152895.png

Step 8: Condition Record Maintenance –

Tcode FV11 –

Tax codes with Percentages to be maintained under Tax Classification for Condition type JIMD.

sagnikch_15-1750055152898.png

sagnikch_16-1750055152903.png

sagnikch_17-1750055152905.png

Tax codes with Percentages to be maintained under Tax Classification for Condition type JIMN.

sagnikch_18-1750055152908.png

sagnikch_19-1750055152910.png

Scenario Test for deductible taxes: Procurement of Material with Deductible Taxcode used H3 during MIRO–

Purchase Order with Tax Code H5

sagnikch_20-1750055152920.png

Tax Calculation in PO –

sagnikch_21-1750055152926.png

Customs MIRO

Inter the PO number and choose Planned delivery costs, enter the invoice date, change the currency to INR as the customs duty is to be paid in INR.

sagnikch_22-1750055152935.png

Change the tax code to H3, enter the customs duty amount, quantity and the Assessable value. .

sagnikch_23-1750055152945.png

The calculation of the Tax Amount is on the basis of the Customs Duty + Assessable Value

sagnikch_42-1750056492427.png

sagnikch_26-1750055640209.png

Commissioner of Customs Cr –

Customs Clearing Duty Dr+

IGST Input Tax Dr+

 Goods Receipt –

sagnikch_27-1750055640218.png

In Local Currency -

sagnikch_28-1750055640227.png

Stock Account Dr+

GR/IR Clearing Account Cr-

Customs Clearing Duty Cr-

The Customs duty charge is not a part of the inventory cost and it is appearing as a separate line item during the GRN. The Tax amount is not included in the Stock account in case of deductible scenario.

Main MIRO –

sagnikch_40-1750056249056.png

In Local Currency:

sagnikch_41-1750056336923.png

Main Vendor Cr-

GR/IR Clearing Account DR +

Scenario Test for Non deductible taxes: Procurement of Material with Deductible Tax code used H7 during MIRO–

Purchase Order with Tax Code H5

 sagnikch_31-1750055640247.png

  sagnikch_32-1750055640256.png

Customs MIRO –

 sagnikch_33-1750055640266.png

sagnikch_34-1750055640271.png

Commissioner of Customs Cr –

Customs Clearing Duty Dr+

No IGST is to be paid at the time of the Customs MIRO booking in the case of Non Deductible Scenario.

Goods Receipt

 sagnikch_35-1750055640278.png

In Local Currency –

 sagnikch_36-1750055640284.png

Stock Account Dr+

GR/IR Clearing Account Cr-

Customs Duty Clearing Cr-

The Tax amount amount is added into the Stock Account in the case of Non Deductible scenario.

Main MIRO –

 sagnikch_37-1750055640294.png

sagnikch_38-1750055640304.png

In Local Currency-

 sagnikch_39-1750055640311.png

Main Vendor Cr-

GR/IR Clearing Dr+

 

Regards,

Sagnik.