GST tax calculation determination

[Former Member]

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.

[brinda_r · Accepted solution]

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

[Former Member · Accepted solution]

Thank you Brinda,

But what if I donot have a plant in KA and I have booked the order from WB and the Vendor supplies the material from KA ?

Regards,

Sagnik.

[Former Member · Accepted solution]

IGST will be applicable.

[govind_ramesh]

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