Reverse Charge Tax Configuration Mechanism For GST in - GST (Goods and Service Tax) - STechies

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Home » GST (Goods And Service Tax) » GST (Goods And Service Tax) Tutorial Login To Follow GST IN TAX Procedure and
Procurement Configuration in SAP
Tax Indicator (TAXIM) Fields for
By: vaibhav gupta | 12 Jun 2017 1:05 pm | 0 Comments
GST IN
10 0 215 1 Like SAP offers ASP for GST India
Import Process For GST India
Forums
Reverse Charge Tax Configuration
What are Configuration of Service
Scenario For GST India Tax Reverse Charge?
Configuration for Procurement What is Withholding Tax Reversal
Mechanism and Service Tax
Condition types Reversal Mechanism?
1.Deductible reverse charge condition types Include Freight cost into GST IN
tax calculation during MIRO
Below are the 4 reference condition types Convert TAXINN to GST
delivered in previous tutorial to handle GST for Maintenance of HSN/SAC Codes
taking credit (CGST, SGST, IGST, and UTGST). for GST INDIA
such as
JPCG
JPSG
JPIG
JPUG
NOTE: The condition types provided are for reference only. You can copy and change as per your needs.
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Reverse Charge Tax Configuration Mechanism for GST IN | GST (Goods And Service Tax) | S... https://www.stechies.com/reverse-charge-tax-configuration-gst/
Please execute the t-code OBQ1 or please use IMG path given below:
SPRO -> Financial Accounting (New) -> Financial Accounting Global Settings (New)-> Tax on
Sales/Purchases-> Basic Settings-> Check Calculation Procedure-> Create Condition Types.
Condition Types for Deductible Reverse Charge
Condition Types Description
JPCG IN: RCM CGST
JPSG IN: RCM SGST
JPIG IN: RCM IGST
JPUG IN: RCM UTGST
JPCR – IN: RCM CGST - Reverse Charge Condition type for Central GST
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JPSR - IN: RCM SGST - Reverse Charge Condition type for State GST
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JPIR – IN:RCM IGST - Reverse Charge Condition type for Integrated GST
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JIUR – IN: RCM UTGST - Reverse Charge Condition type for Union Territory GST
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Note: The user can use the access sequence JGSI or MWST as per your business requirement.
2.Non-Deductible reverse charge Scenario

Below are the 4 reference condition types delivered in the previous tutorial to handle GST for non-
deductible cases (CGST, SGST, IGST, UTGST, and CESS). such as,
JPSN
JPCN
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JPUN
Now we have to create 4 negative condition types for Non-Deductible condition types by referring
deductible RCM condition type. Such as, JPCR user can copy this and create your own condition type.
The table below are the non-deductible reverse charge condition types
Condition Types Description
PCRN IN: RCM CGST Inv
PSRN IN: RCM SGST Inv
PIRN IN: RCM IGST Inv
PURN IN: RCM UTGST Inv
Note: These P conditions are just a reference condition types for non-deductible scenario.
Accounting Keys
In order to create accounting keys please execute the t-code OBCN
Deductible Condition Types Accounting keys
Account Key Corresponding deductible condition type
JRS – IN: RCM SGST JPSG- IN: RCM SGST
JRC - IN: RCM CGST JPCG - IN: RCM CGST
JRI - IN: RCM IGST JPIG - IN: RCM IGST
JRU - IN: RCM UTGST JPUG - IN: RCM UTGST

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User must create Accounting key maintenance for other duties in the same way.
Note: Create your own accounting key and assign separate G/L account for non-deductible condition
types.
G/L Account Assignment

In order to assign G/L accounts please execute t-code OB40
Now as per as law change for reverse charge in GST India regime, the person who gets the service has
to pay full GST tax i.e. 100% to the Government.
It is recommended to directly post the tax amount to the final payable account and do the payment to the
Government according to the pending payables for each period on the payment date.
Also, create a separate G/L account for reverse charge deductible condition types(duties) and
assign the same to accounting key. Below are the screen shots examples:
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Now in view J_1IT030K_V please maintain the G/L account
Update Tax Procedure - TAXINN

First execute the transaction OBQ3
Now please maintain the defined condition types and account keys in the tax procedure as given below,
1.Deductible scenario:
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2.Non-deductible scenario (Expense out)
Condition records maintenance for reverse charge condition types

Condition records for reverse charge condition types must be created using transaction FV11/FTXP (For
Tax classification category) according to your business requirement.
For example, let’s consider the GST taxes rates (CGST, SGST, IGST & UTGST) are maintained as 18%,
Therefore now we need to create condition records for the reverse charge condition types maintaining it
as 100% in order to fulfill the percentage of reverse charge (Applicable for both deductible and non-
deductible scenario).
This table is deductible CGST condition types which is maintained 18%
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Now below is reverse charge deductible CGST condition types maintained 100% (As in GST it is
100% reverse charge)
Condition Types Classification

Using t-code SM30 please classify the reverse charge condition types in the J_1IEXCDEFN view
Deductible Condition Types
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Non - Deductible condition types
Examples for Reverse Charge Posting

Case 1: - Reverse Charge with 100% Tax credit
Create a PO with GST duties for intrastate procurement with rate as example CGST & SGST 18%.
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Accounting Simulate in MIRO transaction (Invoice verification):
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Case 2: - Reverse Charge without tax credit (100% Expense out)
In case, of reverse charge without credit scenarios, the whole amount is expensed out. Create a PO with
GST duties for interstate procurement with rate. For example, IGST 18%.
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Accounting Simulate in MIRO transaction (Invoice verification):
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Reverse Charge Tax Configuration Mechanism For GST in - GST (Goods and Service Tax) - STechies

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Reverse Charge Tax Configuration Mechanism for GST IN | GST (Goods And Service Tax) | S... https://www.stechies.

GST » TUTORIAL INTERVIEW QUESTIONS FORUM

Interview Courses & Transaction SAP Career

GST » TUTORIAL INTERVIEW QUESTIONS FORUM

Condition Types for Deductible Reverse Charge

Condition Types Description

JPCG IN: RCM CGST

JPSG IN: RCM SGST

JPIG IN: RCM IGST

JPUG IN: RCM UTGST

GST » TUTORIAL INTERVIEW QUESTIONS FORUM

GST » TUTORIAL INTERVIEW QUESTIONS FORUM

GST » TUTORIAL INTERVIEW QUESTIONS FORUM

GST » TUTORIAL INTERVIEW QUESTIONS FORUM

2.Non-Deductible reverse charge Scenario

GST » TUTORIAL INTERVIEW QUESTIONS FORUM

Condition Types Description

PCRN IN: RCM CGST Inv

PSRN IN: RCM SGST Inv

PIRN IN: RCM IGST Inv

PURN IN: RCM UTGST Inv

Deductible Condition Types Accounting keys

Account Key Corresponding deductible condition type

JRS – IN: RCM SGST JPSG- IN: RCM SGST

JRC - IN: RCM CGST JPCG - IN: RCM CGST

JRI - IN: RCM IGST JPIG - IN: RCM IGST

JRU - IN: RCM UTGST JPUG - IN: RCM UTGST

GST » TUTORIAL INTERVIEW QUESTIONS FORUM

G/L Account Assignment

GST » TUTORIAL INTERVIEW QUESTIONS FORUM

Now in view J_1IT030K_V please maintain the G/L account

Update Tax Procedure - TAXINN

GST » TUTORIAL INTERVIEW QUESTIONS FORUM

2.Non-deductible scenario (Expense out)

Condition records maintenance for reverse charge condition types

This table is deductible CGST condition types which is maintained 18%

GST » TUTORIAL INTERVIEW QUESTIONS FORUM

Condition Types Classification

Deductible Condition Types

GST » TUTORIAL INTERVIEW QUESTIONS FORUM

Non - Deductible condition types

Examples for Reverse Charge Posting

GST » TUTORIAL INTERVIEW QUESTIONS FORUM

Accounting Simulate in MIRO transaction (Invoice verification):

GST » TUTORIAL INTERVIEW QUESTIONS FORUM

Case 2: - Reverse Charge without tax credit (100% Expense out)

GST » TUTORIAL INTERVIEW QUESTIONS FORUM

Accounting Simulate in MIRO transaction (Invoice verification):

GST » TUTORIAL INTERVIEW QUESTIONS FORUM

GST » TUTORIAL INTERVIEW QUESTIONS FORUM

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SAP GST (Goods and Services Tax) Interview Questions and

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TAX and Pricing Procedure Configuration for GST

What are Configuration of Service Tax Reverse Charge?

GST IN TAX Procedure and Procurement Configuration in

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