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3715738 - Legal Change: India Budget 2026 - TCS Rate Revision for Scrap, Minerals, Liquor, and Tendu Leaves: GST - S/4 HANA and SAP ERP

Symptom

The Government of India, in the Budget 2026, has announced revised Tax Collected at Source (TCS) rates for specific goods including Scrap, Minerals, Liquor, and Tendu Leaves.

Effective from April 1, 2026, the following rate changes must be reflected in the system to ensure statutory compliance:

  • Scrap, Minerals, and Liquor: Rate change from 1% to 2%.
  • Tendu Leaves: Rate change from 5% to 2%.

This SAP Note provides the configuration steps for S/4HANA to update the rates to ensure statutory compliance.
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Environment

  • SAP S/4HANA Private Cloud
  • SAP S/4HANA On-Premise
  • SAP ERP

Product

SAP ERP all versions ; SAP S/4HANA Cloud Private Edition all versions ; SAP S/4HANA all versions

Keywords

SAP TCS rate change, SAP India TCS configuration, SAP TCS on scrap minerals liquor, SAP TCS tendu leaves, SAP TCS rate update 2025, SAP JTC2 JTC3 TCS condition types, SAP TCS 1 percent to 2 percent, SAP TCS 5 percent to 2 percent, SAP tax code configuration India, FTXP TCS tax code change, SAP define tax codes sales purchases, SAP TCS condition records, VK12 TCS condition maintenance, SAP SD TCS configuration, SAP TCS pricing conditions, SAP India localization TCS, SAP tax collection at source SAP, SAP compliance TCS India, SAP sales TCS update, SAP FI SD TCS integration
, KBA , FI-LOC-MM-IN , India (aka XX-CSC-IN-MM) , FI-LOC-SD-IN , India (aka XX-CSC-IN-SD) , FI-LOC-LO-IN , India , Problem

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