Creating Tax Groups
Two or more tax rates can be combined together to form a tax group. In India, intra-state transactions involve CGST + SGST. So a tax group is created by default in Zakya. For example, GST12 consists of 6% CGST + 6% SGST. Similarly, custom tax groups can be created based on your requirements.
To create a tax group
- Go to Settings > Taxes and select the Tax Rates tab.
- Click + New Tax Group.
- Enter Tax Group Name.
- Select the appropriate taxes and click Save.
Tax Exemptions
In India, tax exemptions are applicable for different products and for a specific set of customers. For example, fresh milk, vegetables, fruits, eggs, coffee, and spices are exempted from GST. Similarly, NGOs and other charitable trusts are exempted. In Zakya, you can add the reason for tax exemptions for an item or a customer.
To add reason for tax exemption
- Go to Settings > Taxes.
- Click the Tax Exemptions tab.
- Click + New Tax Exemption.
- Enter the Exemption Reason and Description.
- Specify the Type and click Save.
Default Tax Preference
The default tax rates for inter- and intra-state transactions can be specified. The chosen tax rates will be applied to all the items and transactions in Zakya. You can choose to change a tax rate manually if required.
To define default tax rates
- Go to Settings > Taxes.
- Click the Default Tax Preference tab.
- Select Intra State Tax Rate and Inter State Tax Rate from the drop-down list.
- Click Save.
