GST Handbook For Functional Consultants

Contents
Business Places ....................................................................................................................................... 2

Assign the Business Places to Plant ........................................................................................................ 4
Create Access Sequence (MM & SD) ...................................................................................................... 5
Create GST Condition Types (Input)................................................................................................... 11
Create GST Condition Types (Output)................................................................................................ 13
Create Accounting Keys ........................................................................................................................ 16
Change Tax Procedure .......................................................................................................................... 18
Change Pricing Procedure (SD) ............................................................................................................. 20
Classify the Tax Condition Types ........................................................................................................... 21
Creation of Tax Codes ........................................................................................................................... 23
Tax Codes assignment to Company Code ............................................................................................. 25
Create GL Accounts for GST .................................................................................................................. 25
Tax Account determination for automatic posting during A/P Invoices .............................................. 29
Tax Account determination for automatic posting during A/R invoices .............................................. 33
HSN / SAC Codes ................................................................................................................................... 33
Service Procurement............................................................................................................................. 35
Changes for STO scenario: .................................................................................................................... 37
Changes for Tax Classification – Material and Customer master: ........................................................ 39
Changes to Material Master & Service Master Data ............................................................................ 41
Changes to Vendor Master ................................................................................................................... 46
Changes to Customer Master ............................................................................................................... 49
Document Splitting ............................................................................................................................... 49
Financial Statement Version ................................................................................................................. 51
Check the Region field in existing customer and vendor masters ........................................................ 53
Business Places
Activity Create Business Place Type of Change Configuration
Primary Module FI Impacted FI/MM/SD

Modules
Business Requirement: (Why?)
The new indirect taxation regime in India (GST) requires the businesses to register in every state of
establishment. The registration number obtained upon registration is called as GSTIN (GST
Identification Number).
The GSTINs obtained by the organization must be maintained in the system, along with their
registered addresses.
Solution Design section: (Why/How)
In order to fulfill business requirement following configuration changes will be required in the
system.
 Activate the Business Place feature, if not already active

 Create one business place per GSTIN
 Maintain the GSTIN in the Business Place (field GST Registration)
 Maintain the registered address in the Business Place
Data Migration impacts: (Manual or LSMW)
The business places will be created manually from the IMG
Configuration Details:
(IMG)  Cross Application Components  General Application Functions  Business Place 

Activate Business Place

Define Business Places
Give the Company Code and Press ENTER

For Creation of new Business Place Click on New Entries
To edit and update the GSTIN number in already existing Business Places, click on the Business Place
and update the Address and GSTIN details
Assign the Business Places to Plant
Activity Assign Business Place to Plants Type of Change Configuration

Modules
In every (A/R and A/P) transaction relevant to tax, the GSTIN of the organization must be captured in
the transaction. Periodically, the GST returns are to be submitted to the Government of India, which
must contain the relevant GSTIN. GST returns are to be submitted for each GSTIN separately
Government of India will be able to identify the organization only through its GSTIN

Inorder to ensure that every A/R and A/P transaction (triggered from Materials Management and
Sales & Distribution) captures the GSTIN of the organization, the business place must be assigned to
Plant
Multiple plants in one state can be assigned to one Business Place
The business places will be assigned manually to the Plants

Assign Business Places to Plants
Create Access Sequence (MM & SD)

Activity Create Access Sequence Type of Change Configuration

Modules
Depending on the HSN Code, Region of the Supplier and Receiver of goods, the relevant rate of GST
should be applied on the transaction.
Access sequence is a search strategy that the system uses to find valid condition record for a
particular condition type. The accesses tell the system where to look first, second, and so on, until it
finds a valid condition record. You specify an access sequence for each condition type for which you
create condition records.
In order to fulfill the business requirement following configuration changes will be required in the
system.
 Create Access Sequence
 Create Condition Types for GST one business place per GSTIN
 Create Accounting keys for each GST Condition types
 Maintain the Tax Procedure with new Condition Types(GST) with Accounting keys
Access sequence will be updated manually from the IMG
(IMG)  Financial Accounting (New) Financial Accounting Global Settings(New) Tax on

Sales/Purchases Basic Settings Check Calculation Procedure Access Sequence
In the below screen, we have created one access sequence each for Purchases and Sales.
In the below screen, we show the access sequence created for output taxes (taxes on sales). It uses
Condition Tables like 776, 768, 775, 750 and 003
The below screen shows the fields involved in Condition table 776
Similarly, the Access Sequence and Condition Tables for Input Taxes (Purchase Taxes) are also
defined.
Input Tax Access Sequence

Create GST Condition Types (Input)
Activity Create Condition Types Type of Change Configuration
Primary Module FI Impacted FI/MM

Modules
Condition types will determine the Price of a condition record. For example, you can define a
different condition types for each kind of price, discount or surcharge that occurs in your business
transactions.
As a part of the new indirect taxation regime in India (GST) requires the following Condition Types to
capture the GST at every business place as follows:
Condition Type Name

JICG CGST
JISG SGST
JIIG IGST
JIUG UGST
JIMG IGST
(Imports)
For the cases where the GST paid is non-deductible (i.e. GST Input Credit not available), we would
need 4 separate condition types
Condition Type Name

JICN CGST
JISN SGST
JIIN IGST
JIUN UGST
JIMN IGST
(Imports)
system.
 Create Different Condition types for GST
Condition types will be created manually from the IMG

Sales/Purchases Basic Settings Check Calculation Procedure Define Condition Types
For Example, we show the Input side CGST Condition Type Settings. Other Condition Types are to be
created accordingly
Note: -Kindly note that the above condition types are reference condition types, customers can
create their own condition types.
Create GST Condition Types (Output)

Activity Create Condition Types Type of Change Enhancement /
Configuration /
Master Data
Primary Module SD Impacted FI/SD

Modules
Business Requirement:
A condition type is a representation in the system of some aspect of your daily pricing activities. For
example, you can define a different condition type for each kind of price, discount, Taxes or
surcharge that occurs in your business transactions.
Under GST regime, we would need 4 separate condition types for GST, similar to MM Module
It manual Configuration in the system as per customer requirements.
(IMG)  Sales and distribution  basic Functions  Pricing  pricing control Define Condition
types.
Condition type Description
JOCG IN:CGST
JOSG IN: SGST
JOIG IN: IGST
JOUG IN: UGST
The below screen shows one of these condition types. Other condition types have to be created
accordingly
Create Accounting Keys
Activity Create Accounting Keys Type of Change Enhancement /
Configuration /
Master Data

Modules
When we add GST related condition types, it must be posted to separate G/L accounts. The
accounting keys will help to achieve the purpose. Both the input GST as well as output GST must be
assigned to separate accounting keys
Accounting keys will determine the right GL Accounts to post the amounts in the system
For example: Freight charges, Discounts Etc. In the same way as a part of the new indirect taxation
regime in India (GST) requires the following Accounting keys to enable the amounts posted in the
respective GL accounts as follows:
system.
 Create required accounting keys for GST
Note: NVV- is an existing accounting key for non-deductible
Condition Type Condition Account Condition Condition Account

Name Key Type Name Key
A/P Output Condition Types A/R Output Condition Types
JICG CGST JIC JOCG CGST JOC
JISG SGST JIS JOSG SGST JOS
JIIG IGST JII JOIG IGST JOI
JIUG UGST JIU JOUG UGST JOU
JICN CGST NVV
JISN SGST NVV
JIIN IGST NVV
JIUN UGST NVV
Accounting keys will be created manually from the IMG

Sales/Purchases Basic Settings Check and Change settings for Tax Processing
The following screen shows JIC accounting key. JII, JIS, JIM and JIU are to be created accordingly
The following screen shows JOC accounting key. JII, JIS and JIU are to be created accordingly
NOTE: For input Tax type should be 2 and for Output tax type should be 1
Change Tax Procedure

Activity Create Tax Procedure Type of Change Configuration

Modules
Taxes must be calculated on relevant purchase and sales transactions, as and when applicable
The Tax Procedure is defined for each country, containing the specifications required to calculate
and post the tax on sales/purchases. Each calculation procedure contains several tax types, which
are called condition types in the procedure. The system defaults condition types when
you define a tax code.
The new indirect taxation regime in India (GST) requires to add the new Condition types along with
respective accounting keys to enable to calculate the new taxes (GST)
system.
 Update the Tax Procedure with required condition types along with accounting keys for GST
 All the input and output GST conditions created earlier must be assigned here.
Tax Procedure will be updated manually from the IMG

Sales/Purchases Basic Settings Check Calculation Procedure Define Procedures
For imports, the following changes must be made in the Tax Procedure
1. Select the procedure (in this example ‘ZTAXIN’), and choose Control (it is available
under Dialog Structure). Refer to the below screen shot for the same.
2. Click on new entries and enter the details as mentioned in the below screenshot.
Kindly note that the Condition base formula (‘800’) which is entered in the below
screen shot is for indicative purpose. Choose a number which is available in your
namespace / landscape & implement the routine with the logic mentioned in the
SAP Note 2458404.
3. Press enter and then save the details.
Change Pricing Procedure (SD)

Activity Change Pricing Procedure Type of Change Configuration
Primary Module FI Impacted FI/SD

Modules
Prices applicable for the sales transactions must be calculated automatically, which must be inclusive
of relevant taxes
In SAP SD, we use three types of pricing procedures primarily
1. Domestic pricing procedure

2. Export pricing procedure.
3. Stock transport (STO) pricing procedure.
system.
 Change the above three Pricing Procedures
Tax Procedure will be updated manually from the IMG
Configuration
(IMG)  Sales and distribution  basic Functions  Pricing  pricing control Define pricing
procedure:
In the below screen, we show how to change the Domestic pricing procedure. Other pricing
procedures must be updated accordingly with the output GST Condition Types
Classify the Tax Condition Types

Activity Change Pricing Procedure Type of Change Configuration
Primary Module MM Impacted FI/MM

Modules
Relevant taxes must be determined during purchase and STO transactions.

The new condition types together with their relevant pricing and tax procedures must be classified in
the customizing table J_1IEXCDEFN
Tax Conditions will be updated manually from transaction SM30
Configuration
Similarly, for Imports, you must classify your custom duty condition (from MM pricing i.e.
Your basic custom duty), import IGST condition, and import Nondeductible IGST condition.
Enter the details as mentioned in the below screenshot.

Creation of Tax Codes
Activity Create Tax Codes Type of Change Configuration

Modules
The applicable tax rates under GST must be maintained in the system
system.
 Create Tax Codes
Tax code is two-digit code that represents the specifications used for calculating and displaying tax.
Examples of the specifications defined under the tax code are:
 Type of tax (input tax or output tax)

 Percentage rate
The applicable tax rates under GST must be created as a tax code.
Tax Codes will be created manually from the IMG or Transaction: FTXP

Sales/Purchases Define Tax Codes for Sales and Purchases
Give the Country: IN

Give the Tax Code. Example: G1
Update the below details
For all Input Taxes, Tax Type = V and
For all Output Taxes, Tax Type = A
In the below screen, we show Tax Code G1, which is an Input tax. Similarly, other tax codes are to be
maintained
Tax Codes assignment to Company Code
Activity Tax Codes assignment to Type of Change Configuration
company code

Modules
Multiple Tax codes can be created under the Tax Procedure assigned to a country, but the tax codes
which are relevant for the entity are to be assigned to the respective company codes.
system.
 Assign Tax Codes to Company Code
The assignment of Tax Codes to company code will be done manually from the IMG
(IMG)  Logistics Generel Tax on Goods Movement India Basic Settings Determination
of Excise duty Condition Based Excise determination Assign Tax Codes to Company Codes
Create GL Accounts for GST

Activity Create GL Account Type of Change Master Data
Modules
GL Accounts are required to post the Business Transactions
As a part of the new indirect taxation regime in India (GST), one needs to create the required GST
accounts for each accounting key under each business place.
system.
 Create the new GL Accounts for GST
GL Account creation will be done manually from the Transaction: FS00
Below are the Sample Input and output GL Accounts in each business place wise
Input Tax GL Accounts Output Tax GL Accounts

Plant – 1000 Plant – 1000
GL Acc GL
Plant Condition Acc Key Account Plant Condition Key Account
G1 1000 IGST JII 24900010 O1 1000 IGST JOI 14900010
G2 1000 CGST JIC 24900020 O2 1000 CGST JOC 14900020
G3 1000 SGST JIS 24900030 O3 1000 SGST JOS 14900030
G4 1000 UGST JIU 24900040 O4 1000 UGST JOU 14900040
Plant – 1100 Plant – 1100
GL Acc GL
Plant Condition Acc Key Account Plant Condition Key Account
G1 1100 IGST JII 24900050 O1 1100 IGST JOI 14900050
G2 1100 CGST JIC 24900060 O2 1100 CGST JOC 14900060
G3 1100 SGST JIS 24900070 O3 1100 SGST JOS 14900070
G4 1100 UGST JIU 24900080 O4 1100 UGST JOU 14900080
Tax Account determination for automatic posting during A/P Invoices
Activity GL Account assignment Type of Change Configuration

Modules
The applicable GST must be posted into respective GL accounts.
system.
 Assign Dummy Tax GL Accounts and Tax Codes for Automatic Account determination
(OB40). These will not be used for posting the GST
 Assign Business Place and tax code wise GL accounts in Table J_1IT030K
The Account determination OB40 will be done manually from the IMG
The account determination in Table J_1IT030K will be done manually from SM30
(IMG)  Logistics Generel Tax on Goods Movement India Basic Settings Account
Determination Define GL Accounts for Taxes (OB40)
Double Click on JIC - > Give the Chart of Accounts Example: CAIN and Press ENTER
Similarly, the GL accounts must be maintained for all other accounting keys like JIS, JII, JIU, JOS, JOC,
JOI and JOU
Note: The GL accounts maintained under OB40 are only Dummy GL Accounts. The actual posting of
GST will happen in the GL Accounts maintained under below table
Use Transaction SM30 to access the Table J_1IT030K
Update the details as per the below screen and press ENTER
Repeat the above process for all other accounting keys JIS, JII, JIU, JOS, JOC, JOI and JOU
Tax Account determination for automatic posting during A/R invoices
Activity GL Account assignment (VKOA) Type of Change Configuration

Modules
The applicable GST must be posted into respective GL accounts, at the time of posting a customer
invoice
system.
 Assign GST output Tax GL Accounts in SD-FI account determination (VKOA)
The relevant GL accounts must be manually configured in the system
(IMG)  Sales and distribution  Basic Functions  Account asignment and Costing  Revenue
account derterminationl Assign GL Accounts
HSN / SAC Codes

Activity Create HSN /SAC Codes Type of Change Configuration /
Master Data
Primary Module MM Impacted FI/MM/SD

Modules
The new indirect taxation regime in India (GST) requires the businesses to classify the materials and
services into HSN Code / SAC Code. These HSN Codes and SAC Codes will be used to determine the
applicable rate of GST
system.
 Activate the HSN / SAC Code feature, if not already active

 Create HSN/SAC code
 Maintain the HSN/SAC Code in the Material Master (field Control Code) and in the service
master (field Tax Tariff Code )
The HSN/SAC Code will be created manually from the IMG
(IMG)  Logistics General  Material Master  Material IDs  Maintain PKWiUs
Below screen shows the Control Code maintained for Country Key IN:
Service Procurement
Activity Tax activation at Individual Type of Change Enhancement /
Service Line Item Level/Main Configuration /
Item level Master Data
Primary Module MM Impacted MM/FI

Modules
For service procurement, we must specify whether GST will be calculated at line item level or main
item level.
system.
 Activate the tax activation either at main item level or service line item level
The tax activation have to be done manually from the IMG
(IMG)  Material Management  External Service Management  Taxes at Individual Service

Level
Below screen shows the tax activation at line item level. If you want to calculate taxes at main item
level, DO NOT tick the check box
Changes for STO scenario:
Activity Changes for STO Scenario Type of Change Configuration
Primary Module SD Impacted SD/FI

Modules
Business needs to post the GST Taxes relevant during STO process.
 Change the STO pricing procedure with Output GST Condition types
The GST Conditions have to be done manually from the IMG.
Change the STO Pricing procedure with GST Output condition types
(IMG)  Sales and distribution  Basic Functions  Pricing  pricing control Define pricing
procedure:
Activity Changes in Billing Document Type of Change Configuration

Modules
Under GST, the supplying plant needs to discharge the GST liability upon STO. Hence, to
create outbound GST invoice for STO process with reference to delivery, we need a new
Billing Type. Earlier, it used to be a proforma invoice, which would not post into FI-GL. But
under GST, it will make postings into FI-GL
Create new billing type (Copy of F2) for STO outbound GST Invoice
New billing type must be manually configured in the system
(IMG)  Sales and distribution  Billing  Billing

Changes for Tax Classification – Material and Customer master:
Activity Changes for Tax classification Type of Change Configuration

Modules
Business need to classify the material and customer master data to taxable or non-taxable
based on the classification.
Tax Determination must be defined as explained below
The GST Tax Classification have to be done manually from the IMG.
(IMG)  Sales and distribution  basic Functions  Taxes  Determine Tax Determination
rules.
(IMG)  Sales and distribution  basic Functions  Taxes  Define Tax Relevancy Of Master
Records.
In the below screen, each of the tax determination JOCG, JOSG, JOIG and JOUG is assigned to Tax
Classification 0 and 1 (Tax-exempted and Full Tax)
This step has to be performed for Customer Master Data and Material Master data
Changes to Material Master & Service Master Data

Activity Maintain data for fields in Type of Change Master Data
Material Master and Service
Master Record
Primary Module MM Impacted FI/MM/SD
Modules

The new indirect taxation regime in India (GST) requires the businesses to classify the materials and
services as per the HSN/SAC Codes. This will determine the applicable rate of GST
In order to fulfill business requirement master data maintenance will be required in the system.
 Maintain the Control Code and Tax Indicator in Material Master

 Maintain the Tax Tariff Code in the Service Master.
Preferably, LSMW can be used to update the master data
Master Data Details:
Material Master (MM02)
Provide the Material Number and click on Select View(S).
Select Purchasing and Foreign Trade: Import Data , Foreign Trade: Export Data and Purchasing view.
Provide the input for Plant and Sales Organization and Distribution Channel if applicable.
Maintain the Control Code in Foreign Trade Export view.
Maintain the Tax Indicator in Purchasing view.

Maintain the Control Code in Foreign Trade Import view.
Service Master (AC02)
Maintain the Tax tariff code and and tax indicator in service master record.
Changes to Vendor Master
Activity Change Vendor Master Type of Change Master Data
Primary Module MM Impacted FI/MM
Modules
The new indirect taxation regime in India (GST) requires the businesses to classify the vendors as
“Registered for GST”, “Not registered” etc.
Similarly, the GSTIN numbers of the vendors must be maintained in their master data. It must be
noted that the vendors may have multiple GSTINs
In order to fulfill business requirement master data maintenance will be required in the system.
 Maintain the GSTIN in the Tax Number 3 Field in the CONTROL Tab of Vendor Master
 Where the vendor has multiple GSTINs, we must define new partners (Invoicing Party) and
maintain them under the PI Partner Function in Vendor Master
Preferably, LSMW can be used to update the master data
Master Data Details:
Vendor Master (XK02)
Provide the Vendor number, Purchasing org. and Company Code.
Select Address and Control from General Data and click on enter.
Click on CIN Details.
Maintain the Vendor Classification field from the drop down options.
In the CONTROL tab, maintain the GST number under Tax Number 3 field.
In case the vendor has multiple GSTINs, (For example Vendor 10000 has 2 more GSTINs)
 Create a new account group for vendor

 Create two new vendor masters under the new account group (One per additional
GSTIN – A10000 and B10000)
 Under the CONTROL Tab, maintain the GSTIN in the Tax Number 3 Field, for the
Vendors A10000 and B10000
 The new vendor masters must have the GENERAL DATA and PURCHASE ORG data
(Company Code Data not needed)
 The new vendor masters must be maintained as PARTNERS in the main vendor
master as below
Changes to Customer Master

Activity Change Customer Master Type of Change Master Data
Modules
 Similar to Changes in Vendor Master

 For additional GSTINs, maintain the partner function Bill-To-Party in Customer
Master
Document Splitting
Activity GL Account assignment for Type of Change Configuration
Document Splitting
Modules

In case the document splitting is active, the new GL Accounts must be assigned to the relevant item
categories, so that the document splitting works without errors.
All the new GST GL accounts needs to be mapped in to the document splitting
system.
 Classify the GL Accounts for document splitting
The assignment GL accounts will be done manually from the IMG
(IMG)  Financial Accounting (New) General Ledger Accounting(New) Business

Transactions Document Splitting Classify G/L Accounts for Document Splitting
Give the Chart of Account and Press ENTER
Example: CAIN
The GST GL accounts must be assigned to the same item category as the existing tax GL Accounts.
Usually, it will Balance Sheet 01000 or Taxes 05000
Financial Statement Version
Activity Change Financial Statement Type of Change Configuration
version
Primary Module FI Impacted FI
Modules
All the new GST GL accounts needs to be mapped in to the existing FSV
system.
 Change Financial Statement version
The assignment GL accounts will be done manually from the IMG
Transaction: OB58
Check the Region field in existing customer and vendor masters
Activity Check / Change Customer and Type of Change Master Data

Vendor Region
Primary Module FI Impacted FI
Modules
GST is calculated based on the Region of the Customer and Vendor involved.
It must be ensured that REGION (State) field is filed in all Customer and Vendor Masters
 Check tables KNA1 / LFA1 and ADRC table to ensure REGION field is filled
 Modify the screen layouts of Customer and Vendor Account groups to make the
REGION field mandatory (If possible)
LSMW can be used to update the REGION field in existing master records

GST Handbook For Functional Consultants

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Contents

Business Places ....................................................................................................................................... 2

Primary Module FI Impacted FI/MM/SD

Business Requirement: (Why?)

Solution Design section: (Why/How)

 Activate the Business Place feature, if not already active

Data Migration impacts: (Manual or LSMW)

The business places will be created manually from the IMG

(IMG)  Cross Application Components  General Application Functions  Business Place 

(IMG)  Cross Application Components  General Application Functions  Business Place 

Give the Company Code and Press ENTER

Primary Module FI Impacted FI/MM/SD

Business Requirement: (Why?)

Solution Design section: (Why/How)

Multiple plants in one state can be assigned to one Business Place

Data Migration impacts: (Manual or LSMW)

The business places will be assigned manually to the Plants

(IMG)  Cross Application Components  General Application Functions  Business Place 

Create Access Sequence (MM & SD)

Primary Module FI Impacted FI/MM/SD

Business Requirement: (Why?)

Solution Design section: (Why/How)

Data Migration impacts: (Manual or LSMW)

Access sequence will be updated manually from the IMG

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

Input Tax Access Sequence

Primary Module FI Impacted FI/MM

Business Requirement: (Why?)

Condition Type Name

Condition Type Name

Solution Design section: (Why/How)

 Create Different Condition types for GST

Data Migration impacts: (Manual or LSMW)

Condition types will be created manually from the IMG

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

Create GST Condition Types (Output)

Primary Module SD Impacted FI/SD

Data Migration impacts: (Manual or LSMW)

It manual Configuration in the system as per customer requirements.

JOSG IN: SGST

JOIG IN: IGST

JOUG IN: UGST

Primary Module FI Impacted FI/MM/SD

Business Requirement: (Why?)

Solution Design section: (Why/How)

 Create required accounting keys for GST

Note: NVV- is an existing accounting key for non-deductible

Condition Type Condition Account Condition Condition Account

Data Migration impacts: (Manual or LSMW)

Accounting keys will be created manually from the IMG

Change Tax Procedure

Primary Module FI Impacted FI/MM

Business Requirement: (Why?)

Solution Design section: (Why/How)

Data Migration impacts: (Manual or LSMW)

Tax Procedure will be updated manually from the IMG

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

3. Press enter and then save the details.

Change Pricing Procedure (SD)

Primary Module FI Impacted FI/SD

Business Requirement: (Why?)

Solution Design section: (Why/How)

In SAP SD, we use three types of pricing procedures primarily