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SAP GST (Goods and Services Tax) Interview Questions and Answer

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SAP GST (Goods and Services Tax) Interview Questions and Answer
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General GST (Goods and Services Tax) FAQ:

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.

Can implicit code be written for the new fields extension in BAPI for the customers?

Yes customers are required to extend on their own.

Has SAP released a not for the DDIC changes?

Yes, all the changes in DDIC have already been given and the changes of HSN and SAC code in the BSEG/BSET table are listed via note 2415115.

In SAP, is it possible to capture the vendor GST invoice for the ERS program?

The invoice is posted automatically in ERS, therefore it’s impossible to capture the GST invoice number, this is utilized in GST returns.

During MIRO, is there a manual way of deriving tax conditions specifically for any exceptions such as in FI bills, HSN code different, Creditable or in the Non-creditable items.

In SAP the reference conditions will be delivered. The customers are able to create manual conditions and consecutively utilized them at the time of MIRO

Reverse charge configuration for material as well as services

SAP – SAP always delivers the reverse charge conditions. At present, there is some clarification pending from a legal standpoint.

Tax conditions for advance payments

SAP –We are waiting for some legal clarifications which are scheduled for delivery in wave 3.

Need some more clarification for the ISD distribution.

SAP –Some clarifications are pending for the scheduled for delivery in wave 3 from a legal standpoint.

Are the auto posting in vendor accounts grounded on the mismatch which are reported by GSTN –are these envisioned by SAP?

SAP – All of these are a part of the SAP Digital compliance App. The mismatch details will be visible in the App. The changes are not mechanically made in the source system.

Changes in Pricing procedures and maintenance of access sequence.

SAP – The customers will be able to add to the reference conditions and access sequence, and these will be delivered.

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

We are waiting for some more clarity awaited from a legal perspective. These will be a part of the phase 2 deliveries. For more details please refer to the proposed development roadmap.

While raising CNs/DNs are there any impacts?

SAP – With regards to the original invoice number the credit and debit notes should also be uploaded into the GSTN.

Does SAP offer the designs for stock transfers, Invoice, Credit and Debit Note?

SAP – There are a few formats which are still pending and have been scheduled for delivery in Phase 3. For more details please refer to the proposed development roadmap.

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

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

Section 10(1)(a) states that the POS shall be the place where the good terminates its movement for delivery to the recipient. The expression recipient is important in this matter. As per the Act 2(93) a recipient is known to the person who is liable to pay the consideration, when consideration is payable for the supply. – Based on the invoice the consideration is payable. Therefore, the Bill to the party to be considered as the recipient.

Incase 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.

When MIRO is created, in SAP, the invoicing party PI partner function will regulate the tax from region and the plant controls the tax to region. Therefore, the plant region is copied in PoS field as the tax to region. For tax calculation standpoint, the GST partner’s Region will be used. In such cases, the user will be equipped with the provision to alter the GST partner and Place of Supply in MIRO also.

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

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

In sales also on a similar note, the bill to party is considered as GST Partner and hence tax to region i.e. Place of Supply. All of this can however be altered at the 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 modify the GST Partner and Place of Supply.

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

For GST Localization, which all SAP modules are in scope?

The modules supported for GST are

  • MM
  • SD
  • FI
  • SRM
  • CRM
  • Real Estate

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

Are the evaluated receipts settlement (ERS)/ MRRL maintained for GST?

No, all of these functionalities have never been reinforced for India and these will also be applicable for GST too.

Why are only the Enjoy Transactions are protracted for GST?

Enjoy transactions are basically related to those invoices and corresponding credit memo only (i.e. FB60/65 FB70/75) and these will be extended with GST specific fields. Classical transactions like FB01 are not limited for Invoice and therefore will not be extended by these fields.


Comments

  • 10 Jun 2017 10:52 am

    1.       Which invoice to be issued in case of purchase of exempted goods from unregistered dealer?

    2.       In Payment Voucher to be issued by us sign of supplier is a must? How the same is possible?

    3.       In case of purchase from unregistered dealer do we need to issue both Invoice & payment voucher or whichever is earlier?

    4.       Advance payment ---GST ?

    5.       Do we need to pay GST on TCS which we charge on Scrap?

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