GST TDS Management in SAP for Invoices
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grc.coo.123GST TDS Management in SAP for Invoices
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grc.coo.123Change Management due to GST – TDS in SAP for Balmer Lawrie during Vendor (Incoming) Invoice
Verification Process routed through Purchase (MM) Module
(Parking through MIR7 / Display & Post the Parked Document through MIR4 / Posting through MIRO)
Step1: Provide below details under “Basic Data” Tab for Transaction of “Invoice”:
Vendor Invoice Date (This Date determines the applicability of GST TDS for relevant Scenarios / Cases).
Vendor Invoice Number.
Step2: Now enter the “Purchase Order Number” under “PO Reference” Tab for which the Goods/Services & Invoice
has been received:
Step3: After that hit ENTER to display the Value for which Invoice has been received or Invoice has to be verified.
Select the Appropriate Line Item:
Step4: Now click on “Calculate Tax”, provide “Amount”, and enter “Business Place & Section” under “Basic Data”
Tab:
Step5: In the next Tab i.e. “Payment”, provide the appropriate “Payment Method”:
Step6: Now click on “Simulate”. System will automatically check the appropriate GST TDS depending on the Vendor
/ Invoicing Party (Supplier Location), Plant (Place of Supply) & Business Place (Recipient):
Step7: All validations has been imposed in this Screen for selecting / deducting the proper GDS TDS in terms of
With-Holding Tax (IG/CG/SG/UG). Kindly follow the instructions displayed as ERROR in lower part of the
Screen & provide the appropriate “W-H Tax Code” under “With-Holding Tax” Tab:
Step8: While displaying the ERROR msg. the Transaction Screen becomes un-editable. To make it editable / enable,
click on any of the Tab or double click on the Screen:
Step9: Once the appropriate “W-H Tax Code” has been selected & User clicks on “Simulate”, System will show the
Accounting Entries including GST TDS deductions depending on the Taxable Supply:
Step10: In case the GST TDS Values computed by System is wrong & it needs manual intervention, then User can
manually provide the “Withholding Tax Base Amount” under the “Withholding Tax” Tab & click on
“Simulate”:
Step11: In case the applicable GST TDS is ZERO, then User can provide “Withholding Tax Base Amount” as ZERO.
Now Save the Document to Park / Post for further Processing.
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Please Remember (GST TDS)
GST TDS is to be deducted @ 2% (1% CGST and 1% SGST/UTGST) on Intra-State Supplies.
GST TDS is to be deducted @ 2% (IGST) on Inter-State Supplies.
GST TDS to be deducted when Total Taxable / Value of Supply under a Contract exceeds Two Lakh Fifty
Thousand Rupees (e.g. Invoice/PO/Agreement).
Value of Supply for the purpose of deduction shall exclude CGST, SGST, IGST, UGST and Cess indicated in the
Invoice.
GST TDS is not-applicable in case Location of Supplier and Place of Supply are same but they are different from
State of Registration of Recipient.
GST TDS will not be applicable for Import Scenarios (using Tax Code Z3 / V0 for Custom / Vendor Payment
respectively).
GST TDS will not be applicable for RCM Scenarios (using Tax Code Z1 / Z4 for Supply from Registered /
Unregistered Suppliers respectively).
GST TDS will not be applicable for Supply from Unregistered Suppliers (using Tax Code V0).
GST TDS is applicable along with the existing TDS Process.
In case Users finds that GST TDS is NOT applicable & still System is restricting to Process / Save the Document
or GST TDS is applicable & System is NOT restricting to Process / Save the Document, then Users should revert
back to respective Core ERP Team / Mr. Vijay Kumar Das (das.vk@balmerlawrie.com).
