TAX– GST Configuration

GST stands for Goods and Service Tax , it is a single tax for the
whole system that levied on all services and goods by the state and
central governments. Before GST, the government of India follows
different types of taxes (Excise, VAT, CST, Service tax, etc) and levied
multiple times. After introduce of GST, single tax is applied on all goods
& services and replaced multiple taxes with GST tax.

1. DEFINE CONDITION TYPE – OBQ1

SPRO → SAP Ref IMG → Financial Accounting (New) → Financial Accounting
Global Settings (New) → Tax on Sales/Purchases → Basic Settings → Check
Calculation Procedure → Define Condition Types
Create Condition Type for Input Tax
Position→MWVS→Press F6 and Change condition type to ICGS and description
Input CGST and press Enter→Save.
(Create Input SGST and Input IGST same Method)

Create Condition Type for Output Tax

Position→MWAS→Press F6 and Change condition type to OCGS and description
Output CGST and press Enter→Save.
(Create Output SGST and Output IGST same method)

2. CREATE G/L ACCOUNT – FS00

Accounting → Finance Accounting → General Ledger → Master Records → G/L
Accounts → Individual Processing → FS00 → Centrally

Create G/l Input cgst, Input sgst, Input igst

Click to Create
G/l account : Leger No
Company code: Your Company Code
➢ TYPE/DESCRIPTION
CONTROL IN CHART OF ACCOUNT
Account Group : Asset
 P & L Statement Balance A/C
 Balancesheet A/C
DESCRIPTION
Short Text Cash : Input Cgst
G/L Account Long Text : Input Cgst
➢ CONTROL DATA
Account Currency: Inr
 Balance In Local Currency Only
 : Line Item Display
 Sort Key : 001
➢ CREATE/BANK/INTEREST
Field Status Group : G001
THEN SAVE
(Create Input SGST and Input Igst)

Create Output sgst ,Output cgst, Output igst

G/L Account : ledger no
Company Code : Your Company Code
➢ TYPE/DESCRIPTION
CONTROL IN CHART OF ACCOUNT
Account Group : Liability
 P&L Statement Balance A/C
 Balance sheet Account
DESCRIPTION
Short Text Cash : Output Sgst
G/L Account Long Text : Output Sgst
➢ CONTROL DATA
Account Currency: Inr
 Balance In Local Currency Only
 : Line-Item Display
Sort Key : 001
➢ CREATE/BANK/INTEREST
Field Status Group : G001
THEN SAVE
(Create Output Cgst and Output Igst)
3. ADD TAX CATEGORY TO PURCHASE AND SALES – FS00
Accounting → Finance Accounting → General Ledger → Master Records → G/L
Accounts → Individual Processing → FS00 → Centrally

Select Purchase/Sales A/C →Edit→Control Data→Tax Category: * →Save

4. CREATE /COPY TRANSACTION KEY – OBCN

SPRO →SAP Ref IMG → Financial Accounting → Financial Accounting Global
Settings → Tax on sales/purchases → Basic settings → Check and change settings for
tax processing→ Execute
Create Transaction Key for Input cgst , Input Sgst , Input Igst
Position→VST→Select Raw VST and Press F6→Change Process to (Any Code):
ICG Description: Input CGST→SAVE
(Do the Same to others)
 Create Transaction Key for Output cgst , Output Sgst , Output Igst
Position→MWS→Select Raw MWS Press F6→Change Process to (Any Code): OSG
Description: Output CGST →SAVE
(Do the Same to others)

5. DEFINE TAX ACCOUNT - OB40

SPRO → Financial Accounting Global Settings (New) → Tax on Sales/Purchases →
Posting → Define Tax Accounts → Execute
Look for : ICG→Double Click→Chart of Account→SAVE→Post key Debit:
40;Credit: 50 →SAVE→Account→Input CGST→SAVE
(Then Click to Procedures and Do the same for Others)

6. CREATE TAX CALCULATION PROCEDURE – OBQ3

SPRO → Financial Accounting Global Settings (New)→Tax on Sales/Purchases→
Basic Settings → Check Calculation Procedure → Define Procedures→Execute

New Entries
Procedure: INDGST (Any code)
Description: Tax procedure for India
Select Raw→Control
New entries

Step CType Description Fro To Acct key

10 BASB BASE AMOUNT
20 ICGS Input CGST 10 10 ICG
30 ISGS Input SGST 10 10 ISG
40 IIGS Input IGST 10 10 IIG
50 OCGS Output CGST 10 10 OCG
60 OSGS Output SGST 10 10 OSG
70 OIGS Output IGST 10 10 OIG
Then SAVE
7. ASSIGN COUNTRY CODE TO TAX PROCEDURRE-OBBG
SPRO → Financial Accounting Global Settings (New) → Tax on Sales/Purchases→
Basic Settings → Assign Country to Calculation Procedure→Execute

Position→India→INDGST→Save
8. DEFINE TAX CODE FOR PURCHASE AND SALES - FTXP
SPRO → Financial Accounting Global Settings (New)→Tax on Sales/Purchases→
Calculation → Define Tax Codes for Sales and Purchases → Execute

Country: In
Tax code : V1 ( Any Number)
Enter
Tax Code : Input Gst @ 12%
 Tax type : V
ENTER
Input Sgst: ISG(A/C Key) :6
Input cgst : ICG :6
SAVE
Tax Code : V1
Tax Code : Output Gst @ 18 %
Tax type: A
ENTER
Output Sgst : OSG (A/C Key) :9
Output Cgst: OCG :9
SAVE
9. MAINTAIN TAX CODES FOR EXCISE DUTIES USING
CONDITION TECHNIQUE - SM30

Table/View : J_1ICONDTAX → Maintain

New entries

Company Code Tax Code

Pr01 V1
Pr01 A2
Then SAVE

10. VENDOR INVOICE – FB60

Accounting → Financial Accounting → Accounts Payable → Document entry →
Invoice

Vendor :
Invoice Date :
Posting date :
Company code :
Amount : Enter Copied Amount after tax Processing
Text :
 Calculate Tax
Select Tax Percentage from Below Box

G/L Acct Short Text D/c Amt in Doc.cur Text Bus Area
Enter Purchase Purchase Debit

Press Enter Then Copy processed amount to vendor Amount Box

Then SAVE
Add Text to Tax G/L if Required and SAVE
11.CUSTOMER INVOICE – FB70
Accounting → Financial Accounting → Accounts Receivable → Document entry →
Invoice

Customer :
Invoice Date :
Posting date :
Company code :
Amount : Enter Copied Amount after tax Processing
Text :
 Calculate Tax
Select Tax Percentage from Below Box

G/L Acct Short Text D/c Amt in Doc.cur Text Bus Area
Enter Sale Sales Credit
Press Enter Then Copy processed amount to Customer Amount Box
Then SAVE
Add Text to Tax G/L if Required and SAVE