There will be no longer the need for the most complicated part of indirect taxes--

the CENVAT credit rules because the multiplicity of central and state indirect taxes
will be subsumed in only three taxes: SGST and CGST will be levied on intra-state
supply of goods and services and IGST (to center) for inter-state supplies.
The list of taxes which will be eliminated are:

Central Taxes State Taxes

Central Excise Duty Value added tax

{Including Additional Excise
Duties, Excise Duty under the Octroi and entry tax
medical and toilet
preparations (Excise duties Purchase tax
) Act 1955 }
Luxury Tax
Service Tax
Taxes on Lottery, Betting and
Additional Customs Duty (CVD) Gambling.

Special Additional Duty of States CESSES and surcharges

Customs (SAD)
Central Sales Tax (levied by
the center and collected by
States)
Central Surcharges and
CESSES (relating to supply of
goods and services)
Entertainment tax (Other than
the tax levied by the local
bodies)
Central Sales Tax (Levied by
central and collected by
States)

Input SGST will be available for set of against output SGST and output IGST. (Not
against CGST). Also, cross-setoff is also allowed i.e., between goods and services.
Input CGST will be available for setoff against output CGST and output IGST. (Not
against SGST). Also, cross-setoff is also allowed i.e., between goods and services.
Input IGST is allowed for setoff against output IGST, CGST and SGST.
 Output TAX

SGST CGST IGST

Input TAX

SGST Yes No Yes

CGST No Yes Yes

IGST Yes Yes Yes

SAP MM
SAP Material Management with all sap applications

Sunday, September 25, 2016

GST impact on SAP MM SD and FI

As we know GST will be with effect from 1 April 2016 in India. As a SAP functional consultant/ Manager,
user. We should know about which is impacted areas.

SAP Materials Management (Procure to Pay)

Purchase Info Records
Material/Service Master
Purchase orders, Invoices
Subsequent Credit /Debit, Debit/Credit Notes

Master Data
SAP FI, SD, MM, G/L Master
Vendor Master
Customer Master

SAP Sales & Distribution (Sales Order to Cash)

Sales Orders, Invoicing
Distribution Channels & Sales areas
Pricing (Types of Conditions)
Billing Schedules, Delivery
Debit/Credit Notes

SAP Financial Accounting

Accounts Payable and Receivables
Invoicing (Non-PO)
Management of Master Records
Billing (Non-SO)
Petty Cash
Invoices and Credit Notes
General Voucher
G/L Account

SAP Forms & Reporting

Other Statutory Reporting
G/L Account Reporting

Goods and Service Tax Structure:

CGST: Central GST

SGST: State GST

Example of GST Invoice:

Vendor Invoice received as

Net Price: 100 (if freight applicable need to be include)

20% GST divided as 10 % CGST and 10% SGST
10% CGST of Net Price: 10
10% SGST of Net Price: 10
Total=100+10+10 = 120

Deal all please post your query, i will try to resolve as per my best level.

you can follow the below steps for GST India Implementations.

1. OSS Note : 1175384 Minimum Support Pack to obtain Support for legal Change in india Logistics
and indirect Tax (CIN)

2. OSS Note : 2167294 : DDIC Change

3. OSS Note : 2153807 Improvement in Tax Code Update Program for PO/ SLA and Contracts

4. OSS Note : 2161911 : Purchase Order / Invoice Display or Cancel Issue

5. OSS Note : 2014164 : TAXINJ to TAXINN Migration.

6. OSS Note : 2252781 : FAQ on Tax Procedure Migration for TAXINJ to TAXINN.

Hope this will offer your a clear picture for implementing the India GST.
I may have missed some steps on how to configure GST for my Sales process. Anyone that has
inputs, please advice.

1. Setup tax types in transaction OVK1. Since the SAP pricing determines the taxes automatically
within pricing. I would also need to setup pricing in my procedure which I will cover in the later steps.

2. Assign the plant for Tax Determination in OX10,

3. Define the Customer Taxes in OVK3, which will maintain the tax code in Customer Master.

4. Define the Material Taxes in OVK4, which will then be maintain in Material Master.

5. Copy condition MWST to GST1.

6. Assign GST1 to pricing procedure, create/ assign new access sequence.

7. Copy account key MWS to GST.

8 Assign GL account using account Key GST, link to GL account.

Now question for my question:

1. Any steps I missed above?

2. Any steps that are wrong?

3. Assuming that the my customer material combination below, GST1 should appear in my pricing
condition with 4% when customer, material = 1.

4. Anyone has a better approach in setting up GST for sales billing process?

Customer Taxes Material Taxes Rate Taxes

114%

000%

010%
100%

All feedback welcome. thanks.

Create Package

J1I_GST_LO

Steps: 1. Go to transaction SE80.

2. Select Package in the dropdown list.

3. Enter the package name as J1I_GST_LO.

4. Press enter and choose YES in the next popup. 5. Enter the following details. - Short Description
- GST India (Logistics) - Application component - FI-LOC - Software component - SAP_APPL -
Transport layer - SAP - Super package - APPL 6. Click on continue button. 7. Save the package