GST Configuration Guide

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Document Revision History

Version
Number Date Author Modification / Notes
1.0 17.02.2017 Subba Reddy.Sathani Draft

Contacts
Area of Responsibility Name of Contact Comments

Sign of List
Date Name Signature

Distributed to
Date Name Signature

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Table of Contents

Contents
1. GST BASIC SETTINGS........................................................................................................................4
1.1 ACTIVATE BUSINESS PLACE...........................................................................................................................4
1.2 MAINTAIN GST REGISTRATION NUMBER IN BUSINESS PLACE..............................................................................5
1.3 ASSIGN BUSINESS PLACES TO PLANTS............................................................................................................6
1.4 MAINTAIN HSN/SAC CODE FOR COUNTRY, MATERIALS & SERVICE MASTER..........................................................7
2. MATERIAL MASTER...............................................................................................................................8
2.1 SET TAX INDICATOR FOR MATERIAL (PURCHASING)............................................................................................8
3. TAX PROCEDURE CONFIGURATION................................................................................................9
3.1 FILED CATALOG...........................................................................................................................................9
3.2 CREATE CONDITION TABLE.............................................................................................................................9
3.3 CREATE ACCESS SEQUENCE........................................................................................................................13
3.4 CREATE CONDITION TYPES..........................................................................................................................16
3.5 CREATE ACCOUNTING KEY...........................................................................................................................18
3.6 UPDATE TAX PROCEDURE............................................................................................................................19
3.7 CLASSIFY CONDITION TYPES.......................................................................................................................20
3.8 ASSIGN G/L TO ACCOUNTING KEY.................................................................................................................21
3.9 ASSIGN TAX CODE TO COUNTRY..................................................................................................................23
4. PRICING PROCEDURE FOR GST – SALES.....................................................................................25
4.1 CREATE CONDITION TABLE...........................................................................................................................25
4.2 CREATE ACCESS SEQUENCE........................................................................................................................27
4.3 CREATE CONDITION TYPES...........................................................................................................................28
4.4 CREATE ACCOUNTING KEY...........................................................................................................................31
4.5 UPDATE PRICING PROCEDURE - JINFAC........................................................................................................32
4.6 CLASSIFY CONDITION TYPES.......................................................................................................................33
4.7 SET TAX INDICATOR FOR MATERIAL (SALES)...................................................................................................34
4.8 G/L ACCOUNT DETERMINATION FOR CGST, SGST & IGST ACCORDING TO BUSINESS PLACE BASED ON TAX CODE.. .35
5. STO CONFIGURATION FOR GST - SD..............................................................................................38
5.1 CREATE NEW BILLING DOCUMENT TYPE..........................................................................................................38
5.2 PRICING PROCEDURE FOR STO BILLING........................................................................................................40
5.3 Changes in STO process from SD – Copy control.......................................................................................41

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1. GST Basic Settings

1.1 Activate Business Place
General Explanation:
In this, you customize the system so that it posts GST or similar tax types, and generates the
associated tax returns on a level below the company code. In the system, this local entity is
called the business place. In addition to tax reporting, the business place can also be used
to assign official document numbers to outgoing documents.

Requirement
By activating the business place and then defining business places and assigning them to plants in the
following activities, you enable the system to automatically assign Financial Accounting (FI),
Sales and Distribution (SD), and Materials Management (MM) documents that contain a
GST item to a business place. Each business place is then able to create its own tax
returns.

Configuration:

T-code

Menu Path IMG  Cross-Application Components General Application Functions 

Business Place  Activate Business Place

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1.2 Maintain GST Registration Number in Business Place

General Explanation:
In this step, you define the business places you need for your company and maintain GST registration
number

Requirement
To maintain GST registration number in GSTIN field

Configuration:

T-code OLME

Menu Path IMG  Cross-Application Components General Application Functions 

Business Place  Define Business Places

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1.3 Assign Business Places to Plants

General Explanation:

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In this step, you assign your business places to your plants. By doing so, the system automatically
derives the default business place when you post a tax-relevant document

Requirement
The system has to automatically derives the default business place and GST registration number when
you post a tax-relevant document

Configuration:

T-code

Menu Path IMG  Cross-Application Components General Application

Functions  Business Place  Assign Business Places to Plants

1.4
Maintain HSN/SAC Code for Country, Materials & Service master

General Explanation:
In this step, you define the HSN/SAC Code you need for your Country, Materials & Service master.

Requirement
To maintain HSN/SAC Code.

Configuration:

T-code

Menu Path IMG  Logistics General Material Master  Material ID’S Maintain
PKWiUs

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2. Material Master
2.1 Set Tax Indicator for Material (Purchasing)

General Explanation:

In this step, you maintain the tax indicators that you wish to assign to materials. You do this for each
country of destination. Set Tax Indicator for Material in material master.

Requirement
Tax indicators are defined as per the requirement.
0 taxable under GST
1 GST Exempted
2 non taxable GST

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Configuration:

T-code OLME

Menu Path IMG Material Management Purchasing  Taxes  Set Tax

Indicator for Material

3. Tax procedure configuration

3.1 Filed Catalog

General Explanation:
In this step, you can extend the field catalog for condition tables to include fields that are not available
for the purpose in the standard system.

Requirement:
Maintain the fields: ALAND, WKREG, VEN_CLASS, TAXIM, STEUC, and MWSKZ in field catalog

Configuration:

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T-code

Menu Path IMG Material Management Purchasing  Conditions  Define

Price Determination Process Extend Field Catalog for Condition
Tables

3.2 Create Condition table

General Explanation:
In this step, a combination of fields that defines the key of a condition record.
Requirement
For each condition type, you define an access sequence. The access sequence tells the system where
to look for relevant condition records for a particular condition type.

Configuration:

Above fields must be maintained in catalog.

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T-code m/05

Menu Path IMG Material Management Purchasing  Conditions  Define

Price Determination ProcessMaintain Condition Table

Create the below condition tables

Note: In Technical View Tick the above fields in Footer fld.

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Give the below inputs and maintain the following in Tcode-SM30

ALAND
REGIO
TAXIM
VEN_CLASS
WKREG

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3.3 Create Access sequence

General Explanation:

In this step, you create an access sequence and assign all the tables created above.

Requirement
For each condition type, you define an access sequence. The access sequence tells the system where
to look for relevant condition records for a particular condition type

Configuration:

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T-code OBQ2

Menu Path IMG Financial Accounting Global Settings (New) Tax on

Sales/Purchases Basic Settings Check Calculation Procedure 
Access Sequences

003 table is required to maintain condition record for FI transactions.

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Note: Make sure that the Doc. fields Aland, Regio, Wkreg are from Document Structure KOMK and
Ven_class, Taxim, Steuc are from KOMP and the field Initial value allowed is ticked for Ven_Class.

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3.4 Create Condition types

General Explanation:

In this step, you create Condition types for each tax.

Requirement
Conditions are created as per requirement
JICG – Central GST
JISG – state GST
JIIG – integrated GST
JISN – State GST - ND
JICN - Central GST - ND
JIIJ - integrated GST - ND

Configuration:

T-code OBQ1

Menu Path Financial Accounting Global Settings (New) Tax on Sales/Purchases Basic
Settings Check Calculation Procedure  Condition type

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Maintain similar data for below condition types.

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3.5 Create Accounting key

General Explanation:

In this step, we will create accounting keys for the above condition types.

Requirement
Create the fallowing Accounting Keys
JIC – Central GST
JII – Integrated GST
JIS – State GST

Configuration:

T-code OBCN

Menu Path Financial Accounting Global Settings (New) Tax on Sales/Purchases Basic
Settings Check and Change Settings for Tax Processing

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3.6 Update tax procedure

General Explanation:

In this step, you will assign the condition types and accounting keys to Tax Procedure.

Requirement
Assign the following condition types in tax procedure
JICG – Central GST
JISG – state GST
JIIG – integrated GST
JISN – State GST - ND
JICN - Central GST - ND
JIIN - integrated GST - ND

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Configuration:

T-code OBQ1

Menu Path Financial Accounting Global Settings (New) Tax on

Sales/Purchases Basic Settings Check Calculation Procedure 
Define Procedures

Note : Also maintain the Sales Condition Types in the procedure to enable Invoice posting without
reference document(FB70, FB75). Sales condition types will be maintained in SD module settings.
After creating condition types in sales module maintain condition types in Tax procedure.

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3.7 Classify Condition Types

General Explanation:

In this step, you specify which condition types you use for which sort of tax

Requirement
Condition type Conditon name Short Description
JICG CGSTSOFFAP A/P CGST SETOFF
JIIG IGSTSOFFAP A/P IGST SETOFF
JISG SGSTSOFFAP A/P SGST SETOFF

Configuration:

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T-code

Menu Path Logistics - GeneralTax on Goods Movements India Basic

Settings  Determination of Excise Duty  Condition-Based Excise
Determination  Classify Condition Types

3.8 Assign G/L to Accounting key

General Explanation:

In this step, we will assign g/l account to accounting key.

Requirement
Assign Dummy G/l account to below accounting keys
JIS – State GST
JIC – Central GST
JII – Integrated GST

Configuration:

T-code OB40

Menu Path Financial Accounting Global Settings (New) Tax on Sales/Purchases Posting
Define Tax Accounts

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Maintain Similar G/L account assignment for transaction keys JIS, JII, JOC, JOS, JOI

Note : Go to T-Code : SM30 and Give Table/View - J_1IT030K_V and click on maintain here, Maintain Actual
G/l Accounts against Business Place and Tax code .

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3.9 Assign Tax Code to Country

General Explanation:

In this IMG activity, assign the tax code for purchasing documents to the company codes where it will
be used.

Requirement
Assign all your tax codes to respective company code
Configuration:

T-code

Menu Path Logistics - GeneralTax on Goods Movements India Basic

Settings  Determination of Excise Duty  Condition-Based Excise
Determination  Classify Condition Types

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4. Pricing procedure for GST – Sales

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4.1 Create condition table

General Explanation:
In this step, you create condition table with key fields according to business requirement for GST.
Requirement
To create condition table for GST Taxes (Material & service)
Configuration:

T-code V/03
Menu Path IMG  Sales & distribution Basic functions  Pricing  Pricing
control  Define condition tables

Create condition table for Material using tcode v/03

Combination 1:- Country/plntregion/taxcl1cust/taxcl.mat/Region/Ctrlcode
Combination 2:- PlntRegion/Region/Taxcl1cust/Material

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Create condition table for services using tcode v/03

Combination:- Plntregion/Region//TaxCL1cust/Activity

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4.2 Create access sequence

General Explanation:
In this step, you create access sequence by assigning condition table.
Requirement
To create access sequence by assigning condition tables to fetch taxes in transaction level using condition
records.
Configuration:

T-code V/07
Menu Path IMG  Sales & distribution Basic functions  Pricing  Pricing
control  Define access sequence

Create access sequence using tcode v/07

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Field assignment:

4.3 Create condition types

General Explanation:
In this step, you create condition types for SGST, CGST & IGST.
Requirement
To create condition types to refer to the respective goods and services taxes at transaction level.
Configuration:

T-code V/06
Menu Path IMG  Sales & distribution Basic functions  Pricing  Pricing
control  Define condition types

Create condition type for SGST

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Create condition type for CGST

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Create condition type for IGST

4.4 Create accounting key

General Explanation:
In this step, you create account keys for respective SGST, CGST & IGST taxes

Requirement
To create accounting keys to be used to determine and post to G/L accounts for respective GST taxes
used in pricing procedure.

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Configuration:

T-code Ov34
Menu Path IMG  Sales & distribution Basic functions  Account
assignment/Costing revenue account determination  Define and
assign account keys

Create new account keys for SGST, CGST & IGST tax condition types

4.5 Update pricing procedure - JINFAC

General Explanation:
In this step, you update pricing procedure by adding new tax condition types JOSG, JOCG & JOIG.

Requirement
To update sales pricing procedure with new tax condition types JOSG, JOCG & JOIG to represent
those taxes at sales transaction level like sales order.

Configuration:

T-code V/08
Menu Path IMG  Sales & distribution Basic functions  Pricing  Pricing
control  Define and assign pricing procedure

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4.6 Classify Condition Types

General Explanation:

In this step, you specify which condition types you use for which sort of tax

Requirement
Condition type Conditon name Short Description
JOCG CGSTAR A/R CGST
JOIG IGSTAR A/R IGST
JOSG SGSTAR A/R SGST

Configuration:

T-code

Menu Path Logistics - GeneralTax on Goods Movements India Basic

Settings  Determination of Excise Duty  Condition-Based Excise
Determination  Classify Condition Types

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4.7 Set Tax Indicator for Material (Sales)

General Explanation:

In this step, you maintain the tax indicators that you wish to assign to materials. You do this for each
country of destination. Set Tax Indicator for Material in material master.

Requirement
Tax indicators are defined as per the requirement.
0 taxable under GST
1 GST Exempted
2 non taxable GST

Configuration:

T-code OVK4

Menu Path IMG Sales and Distribution Basic Functions  Taxes  Define
Tax Relevancy Of Master Records Material Taxes

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4.8 G/L Account determination for CGST, SGST & IGST according to
Business Place based on tax code.

General Explanation:

In this step, we will assign g/l account to respective combination.

Requirement
Assign dummy G/l account to below accounting keys with tax codes.

JOS – State GST

JOC – Central GST
JOI – Integrated GST

Configuration:

T-code OB40

Menu Path Financial Accounting Global Settings (New) Tax on Sales/Purchases Posting
Define Tax Accounts

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Note: Go to T-Code: SM30 and Give Table/View - J_1IT030K_V and click on maintain here, Maintain
Actual G/l Accounts against Business Place and Tax code

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5. STO CONFIGURATION FOR GST - SD

5.1 Create new billing document type

General Explanation:
In this step, a new document type to be created for outbound GST invoice.

Requirement
To create GST invoice when goods are transferred from one plant to another plant.

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Configuration:

T-code VOFA
Menu Path IMG  Sales & distribution Sales  Sales documents  Sales
document header Define sales document types

Copy document type F2 into ZGST (The document type name ZGST is only for reference.
You may create document with any other name.
The Billing type details like “Document Type”, “Cancell.Billing Type”, etc can be
configured as per your business needs.

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5.2 Pricing procedure for STO Billing

General Explanation:
In this step, a separate pricing procedure is created for STO billing.

Requirement
To create GST invoice when goods are transferred from one plant to another plant.

Configuration:

T-code V/08
Menu Path IMG  Sales & distribution Basic functions  Pricing  Pricing
control  Define and assign pricing procedure

It is recommended that you configure separate pricing procedure for the new billing type
created.
The following screenshot is for illustration of pricing procedure for GST invoices (related
to STO process).

You can configure the pricing procedure as per your business needs. The condition type
for base price (ZSTO in above screenshot) is to be configured accordingly. This may
serve as a base for GST tax calculations. Ensure that you are assigning an appropriate
Accounting Key (ZST in the above screenshot) against the base condition type. Also,
maintain suitable G/L accounts for this accounting key and not the sales revenue related
accounts. The G/L accounts determined via this accounting key serve as intermediate
accounts for GST invoice postings.

5.3 Changes in STO process from SD – Copy control

General Explanation:
In this step, create copy control for new billing type ZGST with delivery type LF.

Requirement
To create GST invoice when goods are transferred from one plant to another plant.

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Configuration:

T-code VTFL
Menu Path IMG  Sales & distribution Billing Billing documents  Maintain
copying control for billing documents

Create copy control for the new Billing type(ZGST) created in previous step, by copying
the existing copy control setting of the Billing type ‘F2’ and delivery ‘LF’.

NOTE: In case you are using a different document type than LF for Outbound deliveries
w.r.t STO process, then the Copy Controls must be set accordingly.

Maintain item category NLN with the necessary setting as shown below

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