GST India

Goods and Service Tax (GST) is a comprehensive tax levy on manufacture, sale and consumption of goods and service at a national level.

GST is a tax on goods and services with value addition at each stage having comprehensive and continuous chain of set-of benefits from the producer’s/ service provider’s point up to the retailer’s level where only the final consumer should bear the tax.”

GST structure will include 3 types of Taxes viz. CGST (Central GST) SGST (State GST) and IGST (Integrated GST) and assumed returns to be filed in a single portal governed by Central Government.

GST is a destination based tax where the benefit will always go to the state where the Goods and Services are finally consumed

Input tax Credits (‘ITC’)

§Input CGST and SGST recoverable against output CGST and SGST respectively

§Cross utilization of CGST and SGST credit not permitted except under IGST

§However, input IGST recoverable against output IGST, CGST and SGST

§Refund of unutilized accumulated ITC allowed to exporters

1) OBQ1 – Create condition types

2) Define Procedure: OBQ3

Copy TAXINN procedure and name it as TAXGST - IN; India taxes GST and inserts the

necessary condition and removes the other: (new implementation only).

Assign the procedure against the Country:

3) Create Account Keys: - OBCN

Copy the account Keys of VS1, VS2 & VS3 and create and name it as GS1, GS2 and GS3 respectively

4) Define TAX Accounts:

Create G/L for each account key as per business requirement

5) Create TAX Code: FTXP

Create Tax code for V input tax and A for output tax per business requirement

Like below

V0 – Input NIL TAX

6) Create Condition record for Tax percentage:

ME11,FV11 and VK11 for purchase, Invoice and Sales purpose

Select the key combination and maintain the condition according to requirement with tax code

7) Maintain Excise Defaults: India Localization

transaction OBBG, change the tax procedure TAXINN for country

IN.