Steps t-code

Assign Tax Procedure to Country OBBG

Define Tax Access Sequence OBQ2/OBYZ

Define Condition Types(Tax) OBQ1/OBYZ

Create account keys OBCN

Define Tax procedure OBQ3/OBYZ

Assign GL to account keys & GL OB40

Create Tax code in Country FTXP

Maintain Tax Codes for Excise Duties Using Condition Technique SM30 – J_1ICONDTAX

Maintain Tax Condition Records FV11

GST IN Procurement Configuration in SAP

Technical View:

 Source combination: Region/PlntRegion/GST Class./Material

Access Sequence Maintenance
Executing the t-code OBQ2

Source Access sequence - JGSI– IN: GST for input taxes

Field Assignment:

Please make sure that you Assign WKREG to KOMP

Condition Types
Make the following settings for the condition-based tax procedure TAXINN:

Create the following condition types for GST

Condition types for Deductible GST

 JPCG - IN: Central GST

 JPSG - IN: State GST

 JPIG - IN: Integrated GST

 JPUG - IN: Union Ter. GST Execute the transaction OBQ1

Executing the t-code OBQ1

Condition type for Central GST - JPCG - IN: Central GST
Condition type for State GST - JPSG - IN: State GST
Condition type for Integrated GST - JPIG - IN: Integrated GST

Condition type for Union Territory GST - JPUG - IN: Union Ter. GST
Condition types for Non-Deductible Taxes

 JPSN - IN: State GST - ND

 JPCN- IN: Central GST - ND

 JPIN - IN: Integrated GST-ND

 JPUN - IN: UnionTer. GST-ND

Condition type for Non-deductible state GST - JPSN - IN: State GST - ND
Condition type for Non-deductible central GST - JPCN - IN: Central GST - ND

Condition type for Non-deductible central GST - JPIN

- IN:Integrated GST-ND

Condition type for Non-deductible central GST - JPUN - IN: UnionTer.

GST-ND
Accounting Keys
Executing T-code OBQ1

Deductible Condition Types Accounting keys

Account Key Corresponding deductible condition type

JGS – State GST JPSG - IN: State GST
JGC - Central GST JPCG - IN: Central GST
JGI - Integrated GST JPIG - IN: Integrated GST
JGU - Union Territory GST JPUG - IN: Union Ter. GST

Reference Accounting key maintenance for JGC account key:

Non- Deductible Condition Types Accounting keys

Account Key Corresponding non-deductible condition type

NVV – Non-d.input tax dist JPSN - IN: State GST - ND
NVV – Non-d.input tax dist JPCN- IN: Central GST - ND
NVV – Non-d.input tax dist JPIN - IN:Integrated GST-ND
NVV – Non-d.input tax dist JPUN - IN: UnionTer. GST-ND

Updating Tax Procedure - TAXINN

Execute the transaction OBQ3

Please as shown below maintain the defined condition types and

account keys in the tax procedure:.
Note: This is an example of GST conditions only steps may vary from
actual.

Please also maintain the output tax conditions in TAXINN procedure

for direct FI postings

Condition Records Maintenance

Executing the t-code FV11

Please also maintain the tax rates as per the defined access
sequence.

Classify Condition Types

Now classify the condition types in the view - J_1IEXCDEFN through the T-
code SM30

Proc. CTyp Condition Name

TAXINN JGCG CGSTSOFFAP
TAXINN JGSG SGSTSOFFAP
TAXINN JGIG IGSTSOFFAP
TAXINN JGUG UGSTSOFVAP
TAXINN JGIN INSTSOFVAP
TAXINN JGCN CNSTSOFVAP
TAXINN JGSN SGSTINVAP
TAXINN JGUN UTGSTINVAP
TAXINN JOCG CGSTAR
TAXINN JOIG IGSTAR
TAXINN JOSG SGSTAR
TAXINN JOUG UTGSTAR
TAX and Pricing Procedure
Configuration for GST
Tax Procedure Configuration for GST
1) Create Condition Table
Create Condition Table for Material
Transaction code: M/05

Method 1: Dest. Ctry/Region/PlntRegion/GST Class./Tax ind./Ctrl code/Tax

code

Method 2: Region/PlntRegion/GST Class./Material/Tax code

Create Condition Table for Services

Transaction code: M/05
2) Create Access Sequence
Transaction code: OBQ2

Create Condition Type

Transaction code: OBQ1

Create Central GST condition type

Create State GST condition type

Create Integrated GST condition type

Create State GST Non-deductible condition type

Create Central GST Non-deductible condition type

Create Integrated GST Non-deductible condition type

Create Accounting key
Transaction code: OBCN

Central GST

Integrated GST

State GST
5) Update tax procedure - TAXINN
Transaction code: OBQ3

Note: This is an illustration of GST conditions only, steps may vary from
actual,
GST conditions should get calculate on BASE condition, for Non-deductible
conditions use standard non-deductible accounting key “ NVV” or your own
accounting key

6) Maintain tax percentage rates

You may maintain the tax percentage rates using transaction code FV11,
either based on the proposed access sequence or your own access sequence.

Pricing procedure configuration for GST

1.Create Condition table
Transaction code: V/05

Create condition table for material

Method1: Country/PlntRegion/TaxCl1Cust/TaxCl.Mat/Region/Ctrl
code

Method 2: PlntRegion/Region/TaxCl1Cust/Material

Create condition table for services using transaction code V/05

2.Create Access sequence
Transaction code: V/07

3.Create Condition types

Transaction code: V/06

Create output Central GST condition type

Create output State GST condition type

Create output Integrated GST condition type

4.Create Accounting key

Transaction code: OV34

Create sales accounting key for Central GST, Integrated

GST and State GST
5.Update Pricing procedure – JINFAC
Transaction code: V/08

Note: This is an illustration of GST conditions only, steps may vary from
actual, GST conditions should get calculate on BASE condition

Note: This document is a draft, and provided as a courtesy. This document

is not to be considered final, and all information contained herein is subject
to change. As such, this document is not to be quoted, cited in any
reference, or used by anyone for any purpose other than as a draft
document.
Former Member
June 8, 2017 4 minute read

A solution for Indian GST implementation

for simple procurement scenario using
TAXINN
9 Likes 18,604 Views 8 Comments
This is an attempt to incorporate the tax reformation in India- GST via a simple SAP solution using th
e 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 Excise/ No Excise No Tax

(Intra State)

Inward branch transfer Excise/ No Excise IGST

(Inter State)

Job work expense No tax, only VAT in case CGST + SGST

of Painting contract

Service expense Service Tax CSGT + SGST/ IGST

GST CGST SGST IGST UGST

RATE %
BANDS* 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 Vend
or determine the Taxes applicable.

For complex Supply Chain scenarios where multiple goods movements, subcontracting, consignmen
t, etc. are involved, this might not be an efficient solution for GST implementation. SAP recommende
d Notes and Patches should be followed in this case.

Configuration Steps:

Steps t-code

Assign Tax Procedure to Country OBBG

Define Tax Access Sequence OBQ2/OBYZ

Define Condition Types(Tax) OBQ1/OBYZ

Create account keys OBCN

Define Tax procedure OBQ3/OBYZ

Assign GL to account keys & GL OB40

Create Tax code in Country FTXP

Maintain Tax Codes for Excise Duties Using Condition Technique SM30 – J_1ICONDTAX

Maintain Tax Condition Records FV11

1. Assign Tax Procedure to Country

T-code: OBBG

2. Define Tax Access Sequence

T-code: OBQ2
Copy Access sequence JTAX and create new sequence ZGST.

Include table 03 for condition value determination based on Country and Tax code.

Non-deductible tax percentages will be determined based the last table in access.

3. Define Condition Types(Tax)

T-code: OBQ1 or OBYZ

Based on the available information the below listed GST related condition types are created:

Tax type Condition Type Description

CGST JICG IN: Central GST

SGST JISG IN: State GST

IGST JIIG IN: Integrated GST

UGST JIUG IN: UnionTer. GST

CGST JICN IN: Central GST – ND

SGST JISN IN: State GST – ND

IGST JIIN IN: Integrated GST – ND

UGST JIUN IN: UnionTer. GST – ND

CGST JICR IN: CGST Rev. Charge

SGST JISR IN: SGST Rev. Charge

IGST JIIR IN: IGST Rev. Charge

IGST JIMD IN: Import GST deduct

IGST JIMN IN: Import GST – ND

ND- non-deductible

4. Create Account Keys

T-code: OBCN

Create new Account keys for all conditions who need to be assigned individual GLs
Non-deductible conditions can be assigned to standard key NVV

5. Define Tax procedure

T-code: OBQ3

Append your GST condition types to TAXINN tax procedure as shown below;

6. Assign GL to account keys & GL

T-code: OB40

Assign GLs to transaction key at chart accounts level. Separate GLs can be assigned for each Tax c
ode.
 7. Create Tax Codes in Country IN

T-code: FTXP

Create tax codes in Country India

Tax codes are required to be captured in a TR separately;

FTXP-Tax Code-Transport-Export and save in TR

Maintain Tax Codes for Excise Duties Using Condition Technique

T-code: SM30

table: J_1ICONDTAX

This is an important step as we are using TAXINN tax procedure. If this is not maintained tax code d
oes not work in PO.

Maintain Tax Condition Records

T-code: FV11

Complete this master data activity and maintain the required tax percentages according to you acces
s sequence/key combination for them to be determined in PO.

The below message may appear while maintaining Condition Record;

Tax ID G2 cannot be checked (there are several/no tax records)

Message no. VK242

This is because we did not maintain any Tax Percent. Rate in FTXP. This will not affect tax determina
tion in PO.

J_1iT030K_V