GST (Goods and Services Tax) is a single tax that will replace all the existing indirect

taxes which is rolled out in 2017 April by India Government. In this document you will
find instructions for tax procedure & pricing settings on SAP for GST.

FI-CO Part – Tax Procedure Configuration Steps for GST

 Create Condition table
 Create condition table for material [M/05]
 Create condition table for Services [M/05]
 Create Access sequence [OBQ2]
 Create condition type [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 [OBCN]
 Central GST
 Integrated GST
 State GST
 Update tax procedure – TAXINN [OBQ3]
 Maintain tax percentage rates
SD Part – Pricing Configuration Steps for GST
 Create Condition table [V/05]
 Create condition table for material
 Create condition table for services using transaction code V/05
 Create Access sequence [V/07]
 Create Condition types [V/06]
 Create output Central GST condition type
 Create output State GST condition type
 Create output Integrated GST condition type
 Create Accounting key [OV34]
 Update Pricing procedure – JINFAC [V/08]

In SAP, taxes on sales and purchases are levied on invoiced goods and services
payable in accordance with the principles of VAT. This applies to input and output
tax.

In this manual, following list of configuration steps are executed using Customizing
settings in SAP:

 Step 1: Define Condition type [OBYZ]

 Step 2: Check and Change Settings for Tax Processing [OBCN]
  Step 3: Define Procedure [OBYZ]
 Step 4: Assign Country to Calculation Procedure [OBBG]
 Step 5: Define Tax Codes for Sales and Purchases [FTXP]
 Step 6: Create relevant G/L Accounts [FS00]
 Step 7: Define Tax Codes for Sales and Purchases [OB40]
 Step 8: Assign Tax Codes for Non-Taxable Transactions [OBCL]

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

8. 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.
 9. 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.

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 Assigned tags

 Goods and Services Tax (GST India)

 materials management
 sap mm
 SAP MM GST(India)

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