FAQ on Goods and Services Tax (GST)

FAQ on Goods and Services Tax (GST)

General:

Q1: Do we need to deactivate the excise functionalities once GST is applicable?

Q2: When will be the GST Note available for customer?

Q3:  Do we need CIN going forward for GST implementation?

Q4: Can we re-assign the existing plant to new Business places created for GST?

Q5: Can customer write implicit code for the new fields extension in BAPI?

Q6: Is SAP released a note for DDIC changes?

Q7: Will SAP provide a manual GST JV (Similar to J1IH) program to post GST JV and entries posted through this transaction should appear for utilization?

Q8: Can we capture the vendor GST invoice for the ERS program in SAP?

Q9: Is there any manual way in deriving tax conditions during MIRO for any exceptions e.g. HSN code different, FI bills etc, Creditable/Non creditable items.

Q10: Reverse charge configuration for both material and services

Q11: Tax conditions for advance payments

Q12: For ISD distribution need a clarity

Q13:  Auto posting in vendor accounts based on mismatch reported by GSTN –whether envisaged by SAP?

Q14:  Complete configuration on job work movements. We do not follow the subcontracting route.  How will this be impacted in the GST scenario?

Q15: Changes in Pricing procedures and maintenance of access sequence.

Q16: For Advance collection from dealer – we need to make payment – how the same will get captured

Q17: What are the implications of the above while raising CNs/DNs ?

Q18: Reconciliation report of the value of supplies declared in the annual return with the GL balances in SAP

Q19:  Will SAP provide the Layouts for Invoice, Stock transfers, Credit Note and Debit Note

Q20: Will GST taxes and Place of Supply (PoS) be derived from the Bill to region?

Q21: Which SAP modules are in scope for GST localization?

Q22: Is Evaluated receipts settlement (ERS)/ MRRL supported for GST?

Q23: Why only the Enjoy Transactions are extended for GST?

Q24: Will Bapis, IDOCS, Function modules, Reports and Programs be extended as a part of localization for GST?

Master Data:

Q1: Do we need to create a service master and maintain SAC code for material type DIEN?

Q2: Do we need service master for Sale of service?

Q3: Does SAP still rely on the current Excise localization table to maintain control code with automatic updates into MARC or will localization table’s disappear and regular material master maintenance process will have to be used for updating fields?

Q4: What will happen to open sales and purchase order when existing plants are assigned to new business place, which are created for GST?

Q5: Do we have any impact on reporting/ correction processes for transactions originally assigned old business place where plant now has remapped business place?

Q6: Is “Actual place of Supply” duplicates “Business Place”?

Q7: Can we assign multiple business place to same Company Code/Plant?

Q8: As per our understanding, it is for invoicing document number range. What is the purpose of assigning business place to plant?

Q9: New field added in Invoice like GST Partner and Actual Place of Supply. Are these countries specific?

Q10: At present, only one field is provided for GST Registration Number(GSTIN). Where to store the Unique Identification Number in Vendors and Customer Records?

Q11: Is Tax GL not derived as per the business place and still referring from OB40?

Q12: Can we add additional options in Vendor Classification other than the Registered / Non- Registered / Compounding / PSU or Govt org provided by SAP?

Q13: Is GST invoice document numbering at business place level and when will it be delivered?

Q14: Any additional details required for vendor master updation – to be collated from vendors.

Q15: How vendor master will be updated i.e. Mass upload ?

Q16: Partner function activation – Is it necessary and how it would help.

Q17: Any additional details required for vendor master updation – to be collated from vendors.

Q18: How material master will be updated i.e. Mass upload ?

Q19: Changes in Pricing procedures and maintenance of access sequence.

Q20: Master for supply of service is to be maintained how?

Q21: Any additional details required for vendor master updation – to be collated from customers.

Q22: How Dealers master will be updated i.e. Mass upload?

Q23: Partner function activation – whether required?

Q24: How material master will updated i.e. Mass upload ?

Q25: Master for supply of service is to be maintained how?

Procurement (MM):

Q1: Is it required to maintain service master for procurement of text based services?

Q2: Is there any restrictions on the name of the pricing procedure used in the global landscape?

Q3: Do we need to split the business places at line item in PO?

Q4: In MIRO – Do we have to split PO and Invoice, if there are multiple plants in one PO that link to different business place?

Q5: If Goods Supplier partner is not maintained in the PO header then what will be defaulted in the MIRO under GST Partner field?

Q6: Why is the actual place of supply field provided in the header of MIRO?

Q7: Will GST tax be captured at GRN Level?

Q8: Will all registers like RG1, RG23 will continue in GST regime?

Q9: Will all registers like RG1, RG23 will continue for excise materials?

Q10: Is it mandatory to create good supplier partner function or can main vendor be used?

Q11: Will SAP provide the functionality to capture the GST tax value during GR creation?

Q12: Will accounting document and tax component differ in case of vendor partner is getting changed in MIRO?

Q13: How will the Business place be updated / determined in case of import transactions

Q14: Credit can be taken at the time of GR or IR , however which one is the best from IT point of view ?

Q15: Will system allow to change fields in MIRO if there are changes in Purchase order inputs e.g. Vendor has supplied material from different location than that of mentioned in PO?

Q16: Will input tax credit be available at the time of Goods Receipt (GR)?

Stock Transfer (STO):

Q1: Will STO rely on tax code between two different registration numbers?

Q2: Will STO rely on tax code between the same registration numbers?

Q3: In STO scenario how to clear the balances of vendor line item and customer line item?

Q4: Will SAP provide the moving average price for STO?

Q5: What is SAP recommended process for asset transfer with STO and to capture the HSN code as well?

Q6:  How tax  will be populated in the interstate STO? In case of stock transfers, how would the account determination happen?

Q7: Input tax credit mechanism for each category i.e. STO, purchases & import transaction

Sales Distribution (SD):

Q1: Is Material Tax Classification required for Sales

Q2: In case of Sale invoices as well the account determination logic needs to be understood?

Q3: How Ship to party and bill to party will work

Q4: How billing shall be done for intra state supply within same taxable entity i.e. billing without tax.

Q5: Services related outward billing?

FI:

Q1: Does SAP provide separate fields for storing GST Partner, HSN/SAC code, Place of Supply in FI postings for tax reporting purpose?

Q2: How would SAP support the GST for FI, if we were not using the MM and SD module?

Q3: Do we need to use FI direct tax codes for Tax access sequence (FB60/65/70/75)?

Q4: Why all new fields (HSN/SAC, GST partner) are not appearing in FB03 and FB01 screen (FI document display level)?

Q5: Auto clearing of input tax credit clearing accounts

Q6: Clearing of intermediaries’ accounts – Credit of tax charged on STO

Q7: Auto clearing to clearing accounts IGST, CGST & SGST post payment.

S/4HANA:

Q1: Is CIN part of S/4HANA and do we require CIN for GST implementation in S/4HANA?

Q2: Will TDS available in S/4HANA ?

Q3: Will excise part of the S/4HANA for other materials like diesel, petrol?

 

Other Terms

GST FAQ’s, 2405801 , GST draft law, Goods and Service Tax, FAQ’s, GST in S/4HANA

Reason and Prerequisites

Reason: This is FAQ SAP Note on GST based on the draft law of GST

Solution

General:

Q1: Do we need to deactivate the excise functionalities once GST is applicable?

A1: We need not deactivate the excise functionalities, as excise will co-exists with GST (For some specific materials).

Q2: When will be the GST Note available for customer?

A2: GST notes will be delivered in phased manner. The first GST note deliverable on 16 December

Q3:  Do we need CIN going forward for GST implementation?

A3: There is no separate activation is required for CIN, as it is no more delivered as an Add-ON. It is a part of standard EhPs.

Q4: Can we re-assign the existing plant to new Business places created for GST?

A4: Business place is a representation of region/registration. GST registrations can be maintained for existing Business Places (if correctly maintained for VAT registrations) and hence there is no need to reassign plants to Business Places. In case this was not maintained correctly in past, customers must take care of this at their end as reassignment may affect backdated VAT transactions.

Q5: Can customer write implicit code for the new fields extension in BAPI?

A5: Yes. Customer need to extend on their own.

Q6: Is SAP released a note for DDIC changes?

A6: Yes, DDIC changes has already been given and the changes of HSN and SAC code in the BSEG/BSET table given via note 2415115.

Q7: Will SAP provide a manual GST JV (Similar to J1IH) program to post GST JV and entries posted through this transaction should appear for utilization?

A7: Wave-2 (March 2017).

Q8: Can we capture the vendor GST invoice for the ERS program in SAP?

A8: In ERS, the invoice is posted automatically, so it will not be possible to capture the GST invoice number which is used in GST returns.

Q9: Is there any manual way in deriving tax conditions during MIRO for any exceptions e.g. HSN code different, FI bills etc, Creditable/Non creditable items.

A9: SAP – Reference conditions will be delivered. The customer can create manual conditions and use them at the time of MIRO

Q10: Reverse charge configuration for both material and services

A10: SAP – SAP will deliver the reverse charge conditions. Currently, some clarification from the law is being awaited.

Q11: Tax conditions for advance payments

A11: SAP – Scheduled for delivery in wave 3, as some clarifications from the law is awaited. Please refer to proposed development roadmap in the JAM page https://jam4.sapjam.com/groups/zSb4pcqj7KwVE2vDu3HFLV/documents/mmZGtuNh4d7JbROkecBQ70/slide_viewer

Q12: For ISD distribution need a clarity

A12:  SAP – Scheduled for delivery in wave 3, as some clarifications from the law is awaited. Please refer to proposed development roadmap in the JAM page https://jam4.sapjam.com/groups/zSb4pcqj7KwVE2vDu3HFLV/documents/mmZGtuNh4d7JbROkecBQ70/slide_viewer

Q13:  Auto posting in vendor accounts based on mismatch reported by GSTN –whether envisaged by SAP?

A13: SAP – This will be a part of the SAP Digital compliance App, the App will show the mismatch details. However, the changes are not automatically made in the source system

Q14:  Complete configuration on job work movements. We do not follow the subcontracting route.  How will this be impacted in the GST scenario?

A14: SAP – Part of the wave 2 deliveries in March 2017

Q15: Changes in Pricing procedures and maintenance of access sequence.

A15: SAP – Reference conditions and access sequence will be delivered and customers can add to them. Please refer note https://launchpad.support.sap.com/#/notes/2407980

Q16: For Advance collection from dealer – we need to make payment – how the same will get captured

A16: SAP – Clarity awaited from the law perspective. Part of phase 2 deliveres. Please refer proposed development roadmap

Q17: What are the implications of the above while raising CNs/DNs ?

A17: SAP – Credit and debit notes should also be uploaded into the GSTN with reference to the original invoice number

Q18: Reconciliation report of the value of supplies declared in the annual return with the GL balances in SAP

A18: SAP – Please refer to the Sap digital compliance app

Q19:  Will SAP provide the Layouts for Invoice, Stock transfers, Credit Note and Debit Note

A19: SAP – Some formats awaited and planned for delivery in Phase 3. Please refer the proposed development roadmap

Q20: Will GST taxes and Place of Supply (PoS) be derived from the Bill to region?

A20: Yes, as per our understanding of the section 10(1)(a) and 10(1)(b), of the model GST law, the Bill to Party determines place of supply and hence the GST taxes.

Section 10(1)(a) provides that the POS shall be the place where the good terminates its movement for delivery to the recipient.  Here the expression recipient is important.  According to the Act 2(93) a recipient is a person who is liable to pay the consideration where consideration is payable for the supply.  – Consideration is payable based on the invoice.  Therefore, Bill to party to be considered as the recipient.

However, in case of 10(1)(c) the POS will be the ‘location of the goods’ and in case of 10(1)(d) the POS will be ‘site’.

Therefore, as far as the GST partner is concerned it can be ‘bill to party’ or location of the goods’ or site’ as the case may be.

In SAP, when MIRO is created, the invoicing party PI partner function will determine the tax from region and the plant will determine the tax to region. Hence plant region is copied in PoS field as the tax to region.  The GST partner’s Region will be used for tax calculation. However, the user will have a provision to change the GST partner and Place of Supply in MIRO also.

If the user wants to use any other party for GST calculation in an automated way, they can create an implicit enhancement to the FORMs ‘GET_GST_PART’ and ‘GET_PLC_SUP’ under Function group ‘J_1IG_VENDOR_SUBSCR’ and change the values within the enhancement as per their requirement.

In Purchase Order, the tax calculation can be influenced by using the user exit ‘J_1I7_USEREXIT_FILL_KOMK_KOMP’

Similarly, in Sales side, the bill to party is considered as GST Partner and hence tax to region i.e. Place of Supply. However, this can be changed at customer’s end by using Badi J1IBADI_INDIA_GST_DETAILS_POST.

For Sales order, Method ‘REDETERMINE_GSTPART_REG_PRI_SO’ of this BADi can be used to change the GST Partner and Place of Supply.

In Billing, Method REDETERMINE_GSTPART_REG_PRICNG of this BADi can be used to change the GST Partner and Place of Supply for Tax determination. In Addition, for Passing different GST Partner and Place of Supply to Accounting interface, Method REDETERMINE_GSTPART_REG_ACONTG of this BADi should be implemented.

Q21: Which SAP modules are in scope for GST localization?

A21: The modules supported for GST are

  1. MM
  2. SD
  3. FI
  4. SRM
  5. CRM
  6. Real Estate

All other module for example – IS Retail, Asset Accounting, FICA, DBS, Warranty Claim, FSCM, Transportation etc. are out of scope

Q22: Is Evaluated receipts settlement (ERS)/ MRRL supported for GST?

A22: No, these functionalities have never been supported for India and the same will continue for GST also.

Q23: Why only the Enjoy Transactions are extended for GST?

A23: Enjoy transactions meant for invoices and corresponding credit memo only (i.e. FB60/65 FB70/75) will be extended with GST specific fields. Classical transactions like FB01 are not exclusive for Invoice and hence will not be extended by these fields.

Q24: Will Bapis, IDOCS, Function modules, Reports and Programs be extended as a part of localization for GST?

A24; No, as part of localization, we never extend or enhance fields in standard BAPI & IDOCs. Customers can go forward and extend the GST relevant fields for BAPIs & IDOCs

Similarly, for Function modules, Reports and Programs also customers need to extend the GST relevant fields.

Please find our analysis and the corresponding remarks for the BAPIs in the below table

BAPI Extension Remarks
BAPI_ACC_DOCUMENT_POST Yes Extensions are available
BAPI_INCOMINGINVOICE_CREATE Yes Extensions are available
BAPI_ACC_INVOICE_RECEIPT_POST Yes Extensions are available
API_ACC_INVOICE_RECEIPT_CHECK Yes Extensions are available
BAPI_ACC_INVOICE_REV_CHECK No Original invoice will be having the new field data. Hence, need not pass the GST relevant fields
BAPI_ACC_INVOICE_REV_POST No Original invoice will be having the new field data. Hence, need not pass the GST relevant fields
BAPI_INCOMINGINVOICE_CANCEL No Original invoice will be having the new field data. Hence, need not pass the GST relevant fields
BAPI_INCOMINGINVOICE_CHANGE Yes Extensions are available

Master Data:

Q1: Do we need to create a service master and maintain SAC code for material type DIEN?

A1: No need to maintain the service master and material master is sufficient .SAC code will be stored under control code field of “Foreign trade export tab” DIEN material.

Q2: Do we need service master for Sale of service?

A2: Yes

Q3: Does SAP still rely on the current Excise localization table to maintain control code with automatic updates into MARC or will localization table’s disappear and regular material master maintenance process will have to be used for updating fields?

A3: If HSN code and chapter id are same, there is no change in the functionality. If they are different, then the chapter ID maintain in the localization table (J1ID) and HSN will maintained in the control code field.

Q4: What will happen to open sales and purchase order when existing plants are assigned to new business place, which are created for GST?

A4: This will be part of the transition process and has to be taken care by the customer at their end

Q5: Do we have any impact on reporting/ correction processes for transactions originally assigned old business place where plant now has remapped business place?

A5: This will be part of the transition process and has to be taken care by the customer at their end

Q6: Is “Actual place of Supply” duplicates “Business Place”?

A6: No. Business Place is used to capture State level registration. Actual Place of Supply can be different from the recipient location in case of purchases.

Q7: Can we assign multiple business place to same Company Code/Plant?

A7: Assignment of plant to a Business place is N:1. Multiple plants can be assigned to one business place but not vice versa.

Q8: As per our understanding, it is for invoicing document number range. What is the purpose of assigning business place to plant?

A8: Business place represents a unique registration in GST (similar to VAT). GSTIN (registration number) will be captured on business place level. Plants belonging to a certain registrations will have to be assigned accordingly to determine which registration they will belong to and for appropriate tax account determination.

Q9: New field added in Invoice like GST Partner and Actual Place of Supply. Are these countries specific?

A9: These fields will be visible only for the Indian company codes.

Q10: At present, only one field is provided for GST Registration Number(GSTIN). Where to store the Unique Identification Number in Vendors and Customer Records?

A10: Unique Identification Number will be captured in the same field as GST Registration Number

Q11: Is Tax GL not derived as per the business place and still referring from OB40?

A11: Business Place based G/L account determination: For Input and output, condition type wise transaction key to be created and business place wise G/L to be created and assigned.

Q12: Can we add additional options in Vendor Classification other than the Registered / Non- Registered / Compounding / PSU or Govt org provided by SAP?

A12: Returns are generated based on these options, so there will not be exits provided for custom development.

Q13: Is GST invoice document numbering at business place level and when will it be delivered?

A13: GST Invoice document numbering will be delivered as part of the wave 2.

Q14: Any additional details required for vendor master updation – to be collated from vendors.

A14:  SAP – The GSTIN of the vendor is mandatory for tax determination and reporting and the tax number 3 field is provided in the ECC system to capture this in the system. Please refer note https://launchpad.support.sap.com/#/notes/2385575. No other new information is captured, if there is a change in the vendor data, that needs to  be updated.

Q15: How vendor master will be updated i.e. Mass upload ?

A15: SAP – This is a onetime activity to be managed by the customer

Q16: Partner function activation – Is it necessary and how it would help.

A16: SAP – You can create separate vendors per state. The partner function is provided for customer who want to have a concept of main vendor – sub vendor concept mostly to align with the TDS (income tax act) requirement of exemptions etc.

Q17: Any additional details required for vendor master updation – to be collated from vendors.

A17: SAP – Answered in point one

Q18: How material master will be updated i.e. Mass upload ?

A18: SAP – A one time activity to be managed by the customer

Q19: Changes in Pricing procedures and maintenance of access sequence.

A19: SAP – Reference conditions and access sequences will be delivered, the customer can further add to them. Please refer to note https://launchpad.support.sap.com/#/notes/2407980

Q20: Master for supply of service is to be maintained how?

A20: SAP – Services master needs to be maintained with the corresponding SAC codes like material masters with corresponding HSN codes

Q21: Any additional details required for vendor master updation – to be collated from customers.

A21: SAP – The GSTIN of the vendor is mandatory for tax determination and reporting and the tax number 3 field is provided in the ECC system to capture this in the system. Please refer note https://launchpad.support.sap.com/#/notes/2385575. No other new information is captured, if there is a change in the vendor data, that needs to  be updated.

Q22: How Dealers master will be updated i.e. Mass upload?

A22: SAP _ One-time activity to be managed by the customer

Q23: Partner function activation – whether required?

A23: SAP _ Partner function is an option

Q24: How material master will updated i.e. Mass upload ?

A24: SAP – One time activity to be managed by the customer

Q25: Master for supply of service is to be maintained how?

A25: SAP – Service master with corresponding SAC to be maintained like material master

Procurement (MM):

Q1: Is it required to maintain service master for procurement of text based services?

A1: No, you can use the FI invoice or External Service Management (provided with GST patch).

Q2: Is there any restrictions on the name of the pricing procedure used in the global landscape?

A2: There will be no restrictions on this.

Q3: Do we need to split the business places at line item in PO?

A3: No split is required in the PO.

Q4: In MIRO – Do we have to split PO and Invoice, if there are multiple plants in one PO that link to different business place?

A4: A separate MIRO has to be created for each Business place.  The Vendor has to send a separate invoice per Business place/GSTIN.

Q5: If Goods Supplier partner is not maintained in the PO header then what will be defaulted in the MIRO under GST Partner field?

A5: The main vendor of the PO will be defaulted under GST Partner field in MIRO

Q6: Why is the actual place of supply field provided in the header of MIRO?

A6: Legally a separate invoice should be create per business place/GSTIN.  As per the place of supply rules, the place of supply can be different from the recipient location specifically in case if services.

Q7: Will GST tax be captured at GRN Level?

A7: No.

Q8: Will all registers like RG1, RG23 will continue in GST regime?

A8: No.

Q9: Will all registers like RG1, RG23 will continue for excise materials?

A9: Yes.

Q10: Is it mandatory to create good supplier partner function or can main vendor be used?

A10: Yes. Main vendor can be used and Goods Supplier is not mandatory.

Q11: Will SAP provide the functionality to capture the GST tax value during GR creation?

A11: No. As per the law, it is not required functionality.

Q12: Will accounting document and tax component differ in case of vendor partner is getting changed in MIRO?

A12: To maintain consistency, customers has to change the values in PO manual.

Q13: How will the Business place be updated / determined in case of import transactions

A13: SAP – Imports is a part of the phase 2 deliveries in March 2017. Please refer proposed development roadmap

Q14: Credit can be taken at the time of GR or IR , however which one is the best from IT point of view ?

A14: SAP – In the GST regime credit is available only once the invoice is uploaded into the GSTN system by the vendor, so it will only be at the time of IR

Q15: Will system allow to change fields in MIRO if there are changes in Purchase order inputs e.g. Vendor has supplied material from different location than that of mentioned in PO?

A15: SAP – SAP’s recommendation will be to make the required changes in the PO so that there is no inconsistencies. However, the option to edit this information at the time of MIRO will be provided, but this change will not make a change in the PO.

Q16: Will input tax credit be available at the time of Goods Receipt (GR)?

A16: No, input tax credit will not be available at the time of GR. It will only be available at the time of IR. Please find the reasons below –

– GST invoice is a ‘Commercial cum tax invoice’ similar to current VAT where taxes are carried along with price (transaction value). Unlike Excise, there is no TAX only invoice in GST and hence no separate invoice other than the Logistics Invoice is required.

– Section 16(2) of the model GST law says, if the buyer has a valid GST invoice and has received the goods, he is eligible to claim ITC on a provisional basis. GR is an internal document to enable Inventory movement and Inventory accounting.  This has nothing to do with recording of invoice from the supplier. ‘Possession of Invoice or Debit note’ is understood by the system when the invoice is captured in the system. This step in the system is MIRO. Please note that MIRO is Invoice capture and post transaction meant exactly for verification of Logistics Invoice (proof that an invoice is received and has values matching to those calculated by system). Please note, it is NOT a payment transaction. This is the same as all other countries that have VAT/GST.

– Last and most important, the source of truth for ITC of GST are the INVOICES uploaded in GSTN by supplier. If this data has to be reconciled and credit accordingly confirmed w.r.t. ERP, the comparison has to be INVOICE number/Date and Fiscal Period. GRNs cannot be uploaded/compared with records in GSTN.

Stock Transfer (STO):

Q1: Will STO rely on tax code between two different registration numbers?

A1: No. We will fetch the tax code for invoice receipt from STO PO.

Q2: Will STO rely on tax code between the same registration numbers?

A2: No. As per the current Draft Model GST Law, no tax is applicable

Q3: In STO scenario how to clear the balances of vendor line item and customer line item?

A3: After MIGO, while capturing the GST Invoice from the sending plant,  the customer and vendor accounting gets cleared.

Q4: Will SAP provide the moving average price for STO?

A4: The moving average price is up to the customer definitions.

Q5: What is SAP recommended process for asset transfer with STO and to capture the HSN code as well?

A5: No standard process for asset transfer and suggested to do the manual FI posting.

Q6:  How tax  will be populated in the interstate STO? In case of stock transfers, how would the account determination happen?

A6: SAP – The related note is delivered from SAP. Please refer to notes  https://launchpad.support.sap.com/#/notes/2416018 and https://launchpad.support.sap.com/#/notes/2428495

Q7: Input tax credit mechanism for each category i.e. STO, purchases & import transaction

A7: SAP – Input tax credit is now based on the information available in GSTN. SAP Will deliver the SAP Digital Compliance App which is a cloud based solution.

Sales Distribution (SD):

Q1: Is Material Tax Classification required for Sales

A1: Yes. It is required and it is to be maintained in material master under the view Sales – Sales Org Data1, Tax data section.

Q2: In case of Sale invoices as well the account determination logic needs to be understood?

A2: SAP – Please refer notes https://launchpad.support.sap.com/#/notes/2410105 and https://launchpad.support.sap.com/#/notes/2410917

Q3: How Ship to party and bill  to party will work

A3: SAP – As per the current rules, the Bill to party needs to be considered for tax calculation. Please refer to the notes delivered from SAP

Q4: How billing shall be done for intra state supply within same taxable entity i.e. billing without tax.

A4: SAP – Clarity from law awaited on what document would be required in this scenario

Q5: Services related outward billing

A5: SAP – Please refer to the notes related to sales

FI:

Q1: Does SAP provide separate fields for storing GST Partner, HSN/SAC code, Place of Supply in FI postings for tax reporting purpose?

A1: Yes. Only FB60, FV60, FB65, FV65, FB70, FV70, FB75 and FV75 will contain these fields.

Q2: How would SAP support the GST for FI, if we were not using the MM and SD module?

A2: FB60, FV60, FB65, FV65, FB70, FV70, FB75 and FV75 will be enabled.

Q3: Do we need to use FI direct tax codes for Tax access sequence (FB60/65/70/75)?

A3: All FI transactions are Tax code based.

Q4: why all new fields (HSN/SAC, GST partner) are not appearing in FB03 and FB01 screen (FI document display level)?

A4: We are supporting only the FB60, FV60, FB65, FV65, FB70, FV70, FB75 and FV75. For GST, no other direct FI transactions are support for GST.

Q5: Auto clearing of input tax credit clearing accounts

A5: SAP – Auto clearing will not happen, the amounts will only be posted to the relevant GL accounts

Q6: Clearing of intermediaries’ accounts – Credit of tax charged on STO

A6: SAP – In case of inter state STO, GST is applicable. This will be uploaded as an invloice into GSTN with the relevant information.

Q7: Auto clearing to clearing accounts IGST, CGST & SGST post payment.

A7: SAP – The relevant amounts will be posted to the GL accounts. Auto clearing is not available

S/4HANA:

Q1: Is CIN part of S/4HANA and do we require CIN for GST implementation in S/4HANA?

A1: CIN is no more an add on. India transactions are part of standards.

Q2: Will TDS available in S/4HANA ?

A2: Yes.

Q3: Will excise part of the S/4HANA for other materials like diesel, petrol?

A3: Yes.

General:

Q1: Do we need to deactivate the excise functionalities once GST is applicable?

A1: We need not deactivate the excise functionalities, as excise will co-exists with GST (For some specific materials).

Q2: When will be the GST Note available for customer?

A2: GST notes will be delivered in phased manner. The first GST note deliverable on 16 December

Q3:  Do we need CIN going forward for GST implementation?

A3: There is no separate activation is required for CIN, as it is no more delivered as an Add-ON. It is a part of standard EhPs.

Q4: Can we re-assign the existing plant to new Business places created for GST?

A4: No. Because of historical data

Master Data:

Q1: Do we need to create a service master and maintain SAC code for material type DIEN?

A1: No need to maintain the service master and material master is sufficient .SAC code will be stored under control code field of “Foreign trade export tab” DIEN material.

Q2: Do we need service master for Sale of service?

A2: Yes

Q3: Does SAP still rely on the current Excise localization table to maintain control code with automatic updates into MARC or will localization table’s disappear and regular material master maintenance process will have to be used for updating fields?

A3: If HSN code and chapter id are same, there is no change in the functionality. If they are different, then the chapter ID maintain in the localization table (J1ID) and HSN will maintained in the control code field.

Q4: What will happen to open sales and purchase order when existing plants are assigned to new business place, which are created for GST?

A4: This will be part of the transition process and has to be taken care by the customer at their end

Q5: Do we have any impact on reporting/ correction processes for transactions originally assigned old business place where plant now has remapped business place?

A5: This will be part of the transition process and has to be taken care by the customer at their end

Q6: Is “Actual place of Supply” duplicates “Business Place”?

A6: No. Business Place is used to capture State level registration. Actual Place of Supply can be different from the recipient location in case of purchases.

Q7: Can we assign multiple business place to same Company Code/Plant?

A7: Assignment of plant to a Business place is N:1. Multiple plants can be assigned to one business place but not vice versa.

Q8: As per our understanding, it is for invoicing document number range. What is the purpose of assigning business place to plant?

A8: Business place represents a unique registration in GST (similar to VAT). GSTIN (registration number) will be captured on business place level. Plants belonging to a certain registrations will have to be assigned accordingly to determine which registration they will belong to and for appropriate tax account determination.

Q9: New field added in Invoice like GST Partner and Actual Place of Supply. Are these countries specific?

A9: These fields will be visible only for the Indian company codes.

Q10: At present, only one field is provided for GST Registration Number(GSTIN). Where to store the Unique Identification Number in Vendors and Customer Records?

A10: Unique Identification Number will be captured in the same field as GST Registration Number

 

Procurement (MM):

Q1: Is it required to maintain service master for procurement of text based services?

A1: No, you can use the FI invoice or External Service Management (provided with GST patch).

Q2: Is there any restrictions on the name of the pricing procedure used in the global landscape?

A2: There will be no restrictions on this.

Q3: Do we need to split the business places at line item in PO?

A3: No split is required in the PO.

Q4: In MIRO – Do we have to split PO and Invoice, if there are multiple plants in one PO that link to different business place?

A4: A separate MIRO has to be created for each Business place.  The Vendor has to send a separate invoice per Business place/GSTIN.

Q5: If Goods Supplier partner is not maintained in the PO header then what will be defaulted in the MIRO under GST Partner field?

A5: The main vendor of the PO will be defaulted under GST Partner field in MIRO

Q6: Why is the actual place of supply field provided in the header of MIRO?

A6: Legally a separate invoice should be create per business place/GSTIN.  As per the place of supply rules, the place of supply can be different from the recipient location specifically in case if services.

Q7: Will GST tax be captured at GRN Level?

A7: No.

Q8: Will all registers like RG1, RG23 will continue in GST regime?

A8: No.

Q9: Will all registers like RG1, RG23 will continue for excise materials?

A9: Yes.

Q10: Is it mandatory to create good supplier partner function or can main vendor be used?

A10: Yes. Main vendor can be used and Goods Supplier is not mandatory.

Stock Transfer (STO):

Q1: Will STO rely on tax code between two different registration numbers?

A1: No. We will fetch the tax code for invoice receipt from STO PO.

Q2: Will STO rely on tax code between the same registration numbers?

A2: No. As per the current Draft Model GST Law, no tax is applicable

Sales Distribution (SD):

Q1: Is Material Tax Classification required for Sales

A1: Yes. It is required and it is to be maintained in material master under the view Sales – Sales Org Data1, Tax data section.

FI:

Q1: Does SAP provide separate fields for storing GST Partner, HSN/SAC code, Place of Supply in FI postings for tax reporting purpose?

A1: Yes. Only FB60, FB65, FB70, FB75 will contain these fields.

Q2: How would SAP support the GST for FI, if we were not using the MM and SD module?

A2: FB60, FB65, FB70, FB75 will be enabled.

S/4HANA:

Q1: Is CIN part of S/4HANA and do we require CIN for GST implementation in S/4HANA?

A1: CIN is no more an add on. India transactions are part of standards.

Q2: Will TDS available in S/4HANA ?

A2: Yes.

Q3: Will excise part of the S/4HANA for other materials like diesel, petrol?

A3: Yes.

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