Impact of GST on Service processes

A service order is used to execute external service transactions requested by the business partner and internal services transactions for the work center.

GST is applicable for service orders that have the Pricing Method set to Time and Material or Fixed Price. GST is calculated when service order is set to Costed and the invoice is generated. The time of supply of the serviced item is considered based on:

  • The date of issue of invoice or the date of receipt of payment, whichever is earlier, if the invoice is issued within the specified period.
  • The date on which service order is set to Costed or the date of receipt of payment, whichever is earlier, if the invoice is not issued within the specified period.

GST is calculated based on the assessable value specified for contracts, contract quotations, calls, service quotations.

Service Orders-Fixed Order Price

The value of the order is fixed for the service order with the Pricing Method set to Fixed Price, the Invoice is based on the fixed price. If GST functionality is applicable:

  • Taxes are calculated based on the Assessable Value for Service.
  • LN defaults GSTIN (GST India) numbers as the Registration Number Own and Registration Number of Business Partner.
Service Orders-Time and Material

The value of the order is not fixed for the service orders with the Pricing Method field is set to Time and Material The customer is billed based on the usage of the resources such as material labor and other cost. Since cost is associated with these resources, an invoice is generated when the order is set to Costed. The GST related tax data is defined for individual resources. LN defaults GSTIN (GST India) numbers as the Registration Number Own and Registration Number of Business Partner.

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