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Requirement to pick plant and ship to in va01 for gst conditions .

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Hi All ,

Requirement to pick plant and ship to in va01 for gst conditions .as of now it is picking plant and bill to !

any suggestion how can i make plant and ship to .. to be picked for calculating GST . (its for all sales order for future it schould pick plant and ship to ).

Accepted Solutions (1)

Accepted Solutions (1)

sanilbhandari
Product and Topic Expert
Product and Topic Expert

Hi shyamprasad09

Please ask how your Tax Business Owner on how would his GSTR 1 would be correct, if the GST calculations are based on what you need.

Nevertheless you can look at below BADI, in case, you want to write your custom logic.

  • REDETERMINE_GSTPART_REG_PRI_SO for Sale Order
  • REDETERMINE_GSTPART_REG_PRICNG for Billing

Just FYI, how the GST Calculation is based:

Bill to Party Region - Karnataka

Ship to Party Region - Telangana

Your plant Region - Karnataka

Ideally the services or goods are deemed to be supplied or consumed by customer in Karnataka and in this case, CGST+SGST (Intra State tax) should be applied. The supplier and buyer would also have GSTIN Number corresponding to Karnataka. However, you are are shipping the goods to Telangana, than tax calculation would be wrong as well as GSTR 1 will go for a toss.

However, if you say that goods will be consumed in Telangana, while you are supplying from Karnataka. In such a case, you should have Bill to Party with Region as Telangana with GSTIN No for registration in Telangana and it is a case of interstate supply with IGST applicable.

If you change the logic as you expect, the GSTR 1 reporting would go for toss as your tax reporting and applicability will be wrong.

Hope this helps.

Thanks & regards

Sanil Bhandari

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Hi Sanil , Thanks for the information.

In our case the

plant region : tamilnadu

ship to : tamilnadu

bill to : karnataka

As the current procedure in va01 it is taking plant region and bill to for determining gst but as per gst consultant the plant region and ship to should be taken since the place of supply and plant are in same state . so cgst and sgst is applicable .

sanilbhandari
Product and Topic Expert
Product and Topic Expert
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Hi shyamprasad09

What your GST expert and myself are saying is the same thing. GST is a destination based tax and it should be determined based on where goods/services are consumed. That is the law and you have to comply!

Now let us take your example:

Plant Region: Tamil Nadu

Goods Supplied to (Ship to): Tamil Nadu

Bill to or Customer Billing Location: Karnataka

In this case, the GSTIN of buyer will be determined from Karnataka, even though you are supplying from Tamil Nadu to a place in Tamil Nadu. This is a case of Intra State Supply and CGST+SGST should be applicable. The current set up is incorrect.

You should ask your billing colleague to call up your customer and ask for a GSTIN No in Tamil Nadu. When you have this information, ask your colleague from Master Data to create a new Bill To for the same customer, but region in Tamil Nadu and with the GSTIN No maintained of Tamil Nadu.

Now when you create the Billing Document, the below information would be applicable:

Buyer GSTIN : Tamil Nadu GST No

Supplier GSTIN: Tamil Nadu GST No

Tax Applicable : CGST+SGST

This will also be updated in GSTR 1 (report for all outward tax information in India). This is the correct way

There is absolutely no issue with the software itself, but it is an issue with not maintaining the correct master data and on your billing clerk, the basic understanding of taxes in India. You do not need a custom development, but a workshop from your tax expert and yourself on how GST works and how the master data maintenance should be done in the system to be legally compliant. I would encourage you to refer the FAQ & other basic notes regarding GST in India

https://launchpad.support.sap.com/#/notes/2405801

https://launchpad.support.sap.com/#/notes/2410105

Hope this helps.

Thanks & Regards

Sanil Bhandari

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Thanks sanil

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