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JPCG
JPSG
JPIG
JPUG
NOTE: The condition types provided are for reference only. You can copy and change as per your needs.
Now we have to create 4 negative condition types for reverse charge as shown below (with screenshots)
Please execute the t-code OBQ1 or please use IMG path given below:
SPRO -> Financial Accounting (New) -> Financial Accounting Global Settings (New)-> Tax on
Sales/Purchases-> Basic Settings-> Check Calculation Procedure-> Create Condition Types.
JPCR IN: RCM CGST - Reverse Charge Condition type for Central GST
JPSR - IN: RCM SGST - Reverse Charge Condition type for State GST
2 of 17 7/5/17, 9:17 PM
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JPIR IN:RCM IGST - Reverse Charge Condition type for Integrated GST
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JIUR IN: RCM UTGST - Reverse Charge Condition type for Union Territory GST
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Note: The user can use the access sequence JGSI or MWST as per your business requirement.
JPSN
JPCN
JPIN
JPUN
Now we have to create 4 negative condition types for Non-Deductible condition types by referring
deductible RCM condition type. Such as, JPCR user can copy this and create your own condition type.
The table below are the non-deductible reverse charge condition types
Note: These P conditions are just a reference condition types for non-deductible scenario.
Accounting Keys
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Note: These P conditions are just a reference condition types for non-deductible scenario.
Accounting Keys
In order to create accounting keys please execute the t-code OBCN
User must create Accounting key maintenance for other duties in the same way.
Note: Create your own accounting key and assign separate G/L account for non-deductible condition
types.
6 of 17 Now as per as law change for reverse charge in GST India regime, the person who gets the service has 7/5/17, 9:17 PM
Reverse Charge Tax Configuration Mechanism for GST IN | GST (Goods And Service Tax) Tut... https://www.stechies.com/reverse-charge-tax-configuration-gst/
Now as per as law change for reverse charge in GST India regime, the person who gets the service has
to pay full GST tax i.e. 100% to the Government.
It is recommended to directly post the tax amount to the final payable account and do the payment to the
Government according to the pending payables for each period on the payment date.
Also, create a separate G/L account for reverse charge deductible condition types(duties) and
assign the same to accounting key. Below are the screen shots examples:
Now please maintain the defined condition types and account keys in the tax procedure as given below,
1.Deductible scenario:
For example, lets consider the GST taxes rates (CGST, SGST, IGST & UTGST) are maintained as 18%,
Therefore now we need to create condition records for the reverse charge condition types maintaining it
as 100% in order to fulfill the percentage of reverse charge (Applicable for both deductible and non-
deductible scenario).
8 of 17 7/5/17, 9:17 PM
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Now below is reverse charge deductible CGST condition types maintained 100% (As in GST it is
100% reverse charge)
9 of 17 7/5/17, 9:17 PM
Reverse Charge Tax Configuration Mechanism for GST IN | GST (Goods And Service Tax) Tut... https://www.stechies.com/reverse-charge-tax-configuration-gst/
Create a PO with GST duties for intrastate procurement with rate as example CGST & SGST 18%.
10 of 17 7/5/17, 9:17 PM
Reverse Charge Tax Configuration Mechanism for GST IN | GST (Goods And Service Tax) Tut... https://www.stechies.com/reverse-charge-tax-configuration-gst/
In case, of reverse charge without credit scenarios, the whole amount is expensed out. Create a PO with
GST duties for interstate procurement with rate. For example, IGST 18%.
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Comments
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Reverse Charge Tax Configuration Mechanism for GST IN | GST (Goods And Service Tax) Tut... https://www.stechies.com/reverse-charge-tax-configuration-gst/
14 of 17 7/5/17, 9:17 PM
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