The default GST relevant tax codes do not apply to your business use case (Alcohol Beverage). But the Default GST tax codes are automatically selected in business transactions, e.g. Customer Invoices.
SAP Business ByDesign
Reproducing the Issue
- Go to the Customer Invoicing work center.
- Create a New Manual Invoice from the Common Tasks.
- Add the required details in the invoice request.
- Go to the Items tab and add a product.
- Go to the Taxes subtab. The Automatic Tax Determination flag is already checked: Based on Bill from & Bill To parties ( if both are in same state then tax code 561 - Domestic Sale Intrastate (CGST & SGST), otherwise tax code 560 - Domestic Sale Interstate (IGST) will be applied. You, however need to use tax code 531-Dom. Sales - Goods (VAT).
In order to assign the correct tax code in Customer invoices the system checks the Bill from and the Bill To parties; Iif both are located in thesame state then CGST & SGST will be applied. Otherwise IGST will be applied.
If the in the Customer Invoice used Material is exisable then follow the below steps:
- Go to the Product Data work center.
- Select the Materials view.
- Select the relevant product and press Edit.
- Press View All and go to the General tab.
In the Material Tariff ID for India field enter the Tariff ID*. *If this field is not visible you can add it via the Personalize functionality.
The Material Tariff ID for India is used for excisable products.
By Default, the Basic Excise Duty (BED) is applied for excisable products for which the Material Tariff ID is maintained in the Product Master data. In this case the Tax Code 538 - Domestic Sale Of Goods (Excise and CST) will be applied.
However, if this tax code is not suitable for your business needs, e.g. if you need to use tax code 531 - Dom. Sales - Goods (VAT) then you can either
- manually change the automatically determined tax code to 531 - Dom. Sales - Goods (VAT) should there be an existing, not completed Sales Order. This tax code would then also be used in the resulting Customer Invoice.
- manually change the automatically determined tax code to 531 - Dom. Sales - Goods (VAT) directly in the manually created Customer Invoice.
GST Tax Codes, Excise Duty, Customer Invoice, Automatic Tax Code determination , KBA , SRD-CC , Cross Components , How To