Skip to Content
author's profile photo Former Member
Former Member

GST tax calculation determination

Dear Guru's,

I have a scenario wherein I have my Corporate Office in Kolkata (West Bengal), I wish to procure a few materials for my construction work happening in Bangalore (Karnataka).

How would SAP determine the TAX (CGST/SGST/IGST)?

a) I raise a purchase order at Kolkata(West Bengal) and I choose a vendor from Bangalore (Karnataka) to supply the goods to my construction site at Bangalore(Karnataka) but the order booking happens from Kolkata(West Bengal) only. So my Order booking point is from Kolkata(West Bengal) but my vendors region is Karnataka and he is supplying the material within Karnataka. (Here Place of Booking is WestBengal, Place of Supply is Karnataka & Vendors region is Karnataka)

b) I raise a purchase order at Kolkata and I choose a vendor from Kolkata (West Bengal) to supply the goods to my construction site at Bangalore(Karnataka) (Here the palce of booking is WestBengal, Place of delivery is at Karnataka and the Vendor region is WestBengal)

Please help me to understand this scenario,

Regards,

Sagnik.

Add a comment
10|10000 characters needed characters exceeded

Related questions

2 Answers

  • Best Answer
    author's profile photo Former Member
    Former Member
    Posted on Apr 13, 2017 at 04:38 AM

    Hi Sagnik,

    GST determination is based on GST partner region(that is your invoicing party) and the place where the goods is supplied region(Place of supply).
    So if your invoicing party is in KA and goods is received in KA then CGST and SGST will be applicable.
    If your invoicing party is in WB and goods is received in KA then IGST will be applicable.

    Reg,
    Brinda

    Add a comment
    10|10000 characters needed characters exceeded

  • Posted on May 18, 2017 at 11:02 AM

    Dear Sagnik,

    If vendors region is KA and the place of delivery is KA then the condition type for IGST will not be considered in the Purchase Pricing procedure derivation. The reason is the key combination for the access sequence against the condition type "Dest. Ctry/Region/PlntRegion/GST Class./Tax ind./Ctrl code" will look for Region of the Vendor, PlntRegion on the site that received the goods.

    In this case both are KA and hence the CGST and SGST condition types will be taken in PO, as only their maintenance will yield results. The IGST condition maintenance will never have Region of the Vendor, PlntRegion on the site as KA as it is maintained with values that satisfy Interstate GST.

    Regards,

    Govind

    Add a comment
    10|10000 characters needed characters exceeded

Before answering

You should only submit an answer when you are proposing a solution to the poster's problem. If you want the poster to clarify the question or provide more information, please leave a comment instead, requesting additional details. When answering, please include specifics, such as step-by-step instructions, context for the solution, and links to useful resources. Also, please make sure that you answer complies with our Rules of Engagement.
You must be Logged in to submit an answer.

Up to 10 attachments (including images) can be used with a maximum of 1.0 MB each and 10.5 MB total.