Interview Question and Answer on GST

FAQ on GST (Goods and Services Tax)

General GST (Goods and Services Tax) Question:

Once GST is applicable, is it necessary for us to deactivate the excise functionalities?
There is no need for us to deactivate the excise functionalities since excise and GST will co-exist (for certain specific materials).

When can the customer expect the GST note to be available?
The GST notes shall be delivered to the customers in a number of phases. 16th December is when the first GST note will be available.

Is CIN required in going ahead for implementation of GST?
Separate activation is not required for CIN because it is not delivered as an Add-ON any longer. It is a part of standard EhPs, as of now.

Will it be suitable for us to re-assign the present plant to new business places created for GST?
Due to historical data, that will not be possible.

GST (Goods and Services Tax) Question related FI:

Does SAP offer different fields for storing GST Partner, HSN/SAC code, or Place of Supply in FI postings for the purpose of tax reporting?
Yes. Only FB60, FB65, FB70, FB75 shall be containing these fields.
Read more here Indian Tax Procedure Migration from TAXINJ to TAXINN

How is SAP to support the GST for FI in case the MM and SD module is not being used?
In such cases, FB60, FB65, FB70, FB75 will be put to use.

GST (Goods and Services Tax) Question related Sales Distribution (SD):

Will we need Material Tax Classification for Sales?
Yes. It shall be required and has to be maintained in material master beneath the view Sales - Sales Org Data1, Tax data section.

GST (Goods and Services Tax) Question related S/4HANA:

Is CIN a part of S/4HANA and will we need CIN for the implementation of GST in S/4HANA?
CIN is no longer an add-on. All the India transactions are components of standards.
Is TDS offered in S/4HANA ?
Yes.
Is excise a part of the S/4HANA in case of other materials such as diesel and petrol?
Yes.

GST (Goods and Services Tax) Question related Procurement (MM):

Do we need to maintain service master for the procurement of any text based service?
That shall not be necessary. You can make use of the FI invoice or External Service Management that was provided with the GST patch.

Is there a restriction of any kind on the name of the pricing procedure that is used in the global landscape?
No restrictions have been put here.

Is it necessary to split the business places at line item in PO?
There is no need to do so.

When it comes to MIRO, are we required to split PO and Invoice if there is more than one plant in a single PO that links to a different business place?
Each business place requires the creation of a separate MIRO. The Vendor is required to send a separate invoice for each business place or GSTIN.

If the goods supplier partner is not maintained in the header of the PO, what is to be defaulted in the MIRO under GST Partner field?
Under GST Partner field in MIRO, the main vendor of the PO shall be defaulted.

Why is there a field for the actual place of supply provided in the MIRO header?
Legally, there should be a separate invoice created for each business place/GSTIN. According to rules regarding the place of supply, the place of supply need not be the same as the recipient location specifically when it comes to services.

Will capturing of GST tax take place at the GRN Level?
No.

Shall all of the registers, such as RG1 and RG23 carry on in GST regime?
No.

Shall all of the registers such as RG1 and RG23 continue with regard to excise materials?
Yes.

Is it compulsory to create goods supplier partner function or is it sufficient to use main vendor?
Goods supplier is not mandatory and the use of main vendor is fine.

GST (Goods and Services Tax) Question related Stock Transfer (STO):

Will STO depend on the tax code between two separate registration numbers?
No. The tax code for invoice receipt will be fetched from STO PO.

Will STO depend on the tax code between the same registration numbers?
No. in accordance with the current Draft Model GST Law, there is no tax is applicable here.

GST (Goods and Services Tax) Question related Master Data:

Is it necessary for us to create a service master along with maintaining SAC code for material type DIEN?
There is no need for maintaining the service master and material master is adequate. The storage of SAC code will be under control code field of "foreign trade export tab" DIEN material.
Read more here Difference between TAXINJ and TAXINN in SAP

Will service master be required for sale of service?
Yes

Is SAP still dependant on the present excise localization table for maintaining control code with automatic updates into MARC or will localization tables no longer exist, and regular material master maintenance process shall need to be employed for updating fields?
No change takes place in the functionality if chapter ID and HSN code remain the same. If they are mot the same, then the chapter ID and HSN will be maintain in the localization table (J1ID) and control code field respectively.

What shall be done to open sales and purchase order when the existing plants get allocated to new business place that were created for GST?
This shift will be a part of the transition process. The customers shall have to take care of this at their end.

Will there be an impact on our end with regard to reporting/correction processes for the transactions that were originally assigned to old business place where the plant now has remapped business place?
This shift will be a part of the transition process. The customers shall have to take care of this at their end.

Does the actual place of supply a replication of business place?
It does not. While business place is for capturing registration at the state level, actual place of supply need not be the same as the recipient location when it comes to purchases.

Will it be possible for us to allocate more than one business place to the same company code or plant?
The allocation of a plant to a business place is N:1. More than one plant can be assigned to a single business place but it cannot happen the other way around.

As far as our understanding goes, its purpose is invoicing document number range. What purpose does the assignment of business place to plant serve?

Business place is representative of a unique registration in GST, which is very close to VAT. GSTIN (the registration number) will be captured on the level of business place. The plants that belong to a certain registration shall need to be allocated accordingly for determining which registration they will belong to, as well as for the determination of appropriate tax account.

Some new fields like GST Partner and Actual Place of Supply have been added in the invoice. Are any of these specific to countries?
All of these new fields will be visible only for the Indian company codes.

As of right now, only one field has been provided for GST Registration Number (GSTIN). Where can the Unique Identification Number in Vendors and Customer Records be stored?
The storage of Unique Identification Number shall be in the same field as the GST Registration Number

SAP Solutions for GST

We at SAVIC, SAP partner, are working closely with leading organizations in India for implementation of GST. SAVIC consultants and subject matter experts are advising, implementing and supporting organizations in their GST journey.

SAVIC assists organizations in understanding the impact of GST on enterprise business processes along with changes that need to be incorporated in the SAP landscape.. Our team of expert consultants will implement, train and ensure smooth on boarding to new GST regime. Subsequent to go live, our teams will be available for handholding and supporting as needed.

Businesses need to adopt a proactive approach in understanding the potential impact of GST on their SAP ERP before the GST Bill becomes a law.

Mohammad Shakir is a Vice President and Ujwal Landge Tax Consultant

SAVIC, “The Perfect Partner” you can rely on

So we proudly say that, We SAVIC are not only your Vendors, but SAVIC are Partner for your Success

Procure to Pay (P2P) Cycle- by Amod Bhat SAP Consultant at SAVIC Technologies

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