Goods and Services Tax (GST India)

Clearing Interstate STO Plant Customer and Plant Vendors in India GST Process

Problem Statement: – Whenever there is an Interstate/Inter region STO is executed based on GST rules, Business need to account for IGST Taxes. As this is a unique scenario where in within the same company code we will have open line items for different plant vendors and plant customers. Using a logic clearing with customer and vendor will work only for a single combination of Customer and Vendors but businesses …

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Calculate taxes using FM CALCULATE_TAX_ITEM with country specifics

If you need to output taxes from Purchase Order you should use FM CALCULATE_TAX_ITEM to achieve this. It works fine and provides necessary infos, but has 1 feature: you should firstly open tax screen by clicking on the button and then run FM. Looks like some global variables should be prefilled before tax calculation. I faced this problem while working on PO print form for India. After some googling I found out, …

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A solution for Indian GST implementation for simple procurement scenario using TAXINN

This is an attempt to incorporate the tax reformation in India- GST via a simple SAP solution using the existing provisions in ECC 6.0 EHP 6. Brief Requirement: Goods and Services Tax (GST) is an indirect tax throughout India to replace existing multiple taxes levied by the central and state governments. Applicable GST rates are determined by the combination Nature of Purchase and Harmonized System of Nomenclature (HSN) code assigned to material. CGST  Central Goods and Service Tax SGST  State Goods and Service Tax IGST  Integrated Goods and Service Tax Nature of Purchase Before GST After GST Goods Purchase within State Excise + VAT CGST + SGST Goods Purchase inter State Excise + CST IGST Import Purchase BCD, CVD, AED, CESS, ECESS IGST 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 * 6 6 12 * 9 9 18 * 14 14 28 * *Mapped to Material HSN (Harmonized System Nomenclature) 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 determine the Taxes applicable. For complex Supply Chain scenarios where multiple goods movements, subcontracting, consignment, etc. are involved, this might not be an efficient solution for GST implementation. SAP recommended Notes and Patches should be followed in this case. Configuration Steps: Steps t-code  Assign Tax Procedure to Country …

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Beta version of Goods and Services Tax (GST), India landscape available now!

Avail this unique opportunity before general availability and Sign-up now to get your own Client in the RAC GST-Beta system. SAP Integration and Certification Center (SAP ICC) is offering GST Beta SAP ERP System for Independent Software Vendors (ISVs) and SAP Partners This Beta system is directly in-sync with the Quality system of the GST development environment. Subscribing to this service will enable you to understand the GST India landscape and …

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GST(Goods and Service Tax) India Solution

The Government of India is planning to roll out GST from 1st of July, 2017 as per the latest update. Based on the draft Model GST law SAP has started releasing Notes for DDIC changes, Screen Changes, Master Data and transaction data. The proposed GST India Development roadmap is available in the GST JAM page – https://jam4.sapjam.com/groups/zSb4pcqj7KwVE2vDu3HFLV/content?folder_id=T6F5GbeIJsnV4E2glGOVPx To get access to this SAP Jam group, please send a request to indiagst@sap.com. …

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Get ready with GST for your SAP

Whether you are in consumer goods, logistics, automotive, manufacturing or any other industry – your business will have a unique journey for GST implementation. The GST Bill The way India does business will change forever after the GST bill is rolled out in April 2017. GST will lead to increased simplification of the tax levy and administration, and increased transparency, which will enable wide compliance and ultimately will unify the …

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Undue process focus – GST reform

  The stress on documentation and process is far too high. Not only are corporates expected to manage this new process along with documentation, they are also indirectly responsible to have their vendor eco system ready with this. The hit otherwise is on working capital in the form of denied credit. Businesses need working capital to manage their daily operations. And if this is diverted to managing indirect tax payment …

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Goods and Services Tax

Introduction :  “Goods and Service Tax (GST) is a comprehensive tax levy on manufacture, sale and consumption of goods and service at a national level. GST is a tax on goods and services with value addition at each stage having comprehensive and continuous chain of set-of benefits from the producer’s/ service provider’s point up to the retailer’s level where only the final consumer should bear the tax.” Overview of GST GST …

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Multi-tier GST – its perils

The GST Council has taken the easy way out by defining multiple slabs of rates. Socialistic political compulsions may necessitate a need for slabs of rates; the famous argument of Finance Minister Arun Jaitley being air conditioners and slippers cannot be taxed at the same rate. But the argument is lost (1) because of consumption patterns, (2) because of restricting purchasing of the lower strata of population that possesses needs …

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Distribution – a case for reform under GST

Supply chain in India is a key to manufacturing, automotive, pharmaceutical, and chemical, consumer goods industries. Set up of this supply chain across geographies is key to profitability of the units as there is a considerable cost involved. While there is a business decision for the set-up of this network, differential tax structures across borders have greatly influenced not just this network, but procurement plans as well. The advent of …

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