GST process for below points in SAP

[former_member611310]

Dear team,

Could you please provide the solution for the following points in the GST Regine

1.What are the steps to be followed in SAP for the Import return process after GST, which includes the reversal of custom duties and IGST

2. Can we use material type DIEN for procurement of Services in the GST Regine?

3. Intercompany STO ( issue plant for the foreign country and receiving plant as in India) process steps to be followed in GST Regine?

Regards,

Ekambaram

[sanilbhandari]

Hi ekambaram

For point no 3, you can refer the rapid explorer (Best Practice) from SAP for ICo STO within India and between two countries (one of them being India). The link is as below

https://rapid.sap.com/bp/#/browse/scopeitemversions/1P9/S4CLD/2011/IN

This has link to video tutorial as well as Test Script. While this is for S/4HANA Cloud, you can adapt it for OP as well.

For Point no 2, what is the exact issue you have with DIEN Material under GST? Can you be bit more specific on this.

Thanks & regards

Sanil Bhandari

[former_member611310]

Hi Sanil,

Thanks for the clarity on point no.3.

For point no.2, can we use text based service or dien material type for procurement process under GST with goods receipt against cost center or internal order or do we necessarily have to use External Service Management which includes service master and service entry sheet as mandate in GST.

Also, for point no.1 Process steps followed in SAP for Return of Imported materials from India to import vendor in GST.

Regards,

Ekambaram

[sanilbhandari]

Hi ekambaram

For point no 2, you can follow either Service material or text based process. You have to make sure, that SAC code is updated in service master. The below OSS note may be applicable for the same.

https://launchpad.support.sap.com/#/notes/0002469458

For Text based PO, there is no option to enter directly the code. In one of my projects. we have used BTE1120 to populate the same on custom logic. You need to look for suitable option. The entry with service master is a standard process for the same though.

Thanks & regards

Sanil Bhandari

[sanilbhandari]

Hi ekambaram

The returns process is also some what same as a normal returns:

1. ME21N - Create a Returns PO (Activate "Returns" indicator for PO line item)

2. MIGO - Goods Receipt > Purchase Order (Returns PO) (Here system will hit Mvmt type "161" and you can also select Un-restricted/blocked stock from where you want to return the stock)

3. Issue a credit note to the vendor.

Now the question comes on how to handle the customs. From a legal point of view, the returns of import of material is only allowed in certain scenarios in India and you need to take care of the restrictions, before you can pass the entry for reversal of customs duty paid. The documentation that is required for import returns as far as I know is:

Refund Application (Part-A, B & C) in proper proforma with declaration
Duplicate Bill of Entry (Importer’s Original Copy) with copies of invoice and Bills of Lading
Original TR-6 challan for payment of Customs duty.
Calculation / Worksheet
Non availment CENVAT credit from the concerned Central Excise Authorities

This has been specified in Section 27 of Central Customs Act 1962. There is a restriction of 6 months in which refund of customs duty paid can be claimed from the date of actual duty paid in the customs challan.

If the date exceeds 6 months you cannot claim a refund. Also the material should not have any value added on the same (it should be in same shape as at the time of original import). If these conditions are met, you can pass for a credit note for customs duty against the Imports PO.

Hope this clarifies.

Thanks & regards

Sanil Bhandari