GST for Bank Charges.

[priyadarshan_behera]

Hello Expert,

I need to understand how GST(CGST+SGST..) posted against Bank charges ( i.e. on various services rendered by Banks to Corporates), when only the GST ( not the Charges) details are shared by Bank at the end of the month.

Let's say throughout the month Bank provides invoices for various charges (w/o levying GST on lt) & cumulatively at the month end one consolidated GST details are shared.

How to treat this entire process in SAP ??

[Lakshmipathi]

This is more of Business decision rather to look into SAP options. What is your client call on this? Either the bank has to provide the required break-up or your client have to account it into some G/L account.

[priyadarshan_behera]

Hi Lakshmipathi,

Thanks for your inputs.

Actually client want to make the consolidated GST (only) entries in the beginning of the next month to GST GL's, where as the expenses (Service Charges) are getting regularly posted by them in the Bank Charges GL.

For the Exp. part it is perfectly fine. No issue.

The issue is for GST portion. How can we accommodate it in SAP so that the entire GST amount could be considered as 100% ITC & reflect accordingly in F.12 ?