I have two items, One is taxed at 18% GST, and another item is Nill rated. I have defined their respective rates in the item master and marked the other item as Nill-rated. However, When I try to create an Invoice, It does two things incorrectly.
It assumes the transaction to be “In State GST”, Whereas I have added the address correctly in the Customer section, which indicates It is an Out of State GST scenario. How can I ensure it picks up the correct template based on the address?
It ignores all the settings in the item master and applies 18% GST on both items.
I am attaching images of the required sections.
@Chintan_Shah1 Have you configured tax category ?
Like adding in state as tax category in your in state customer and then map this category in instate tax row at item level.
Thanks @Hardik_Gadesha for quick response
No, I did not. However, I configured it now. With this, I was able to solve issue partially. This What happened
- I defined two tax categories, In State and Out State
- For the customer, I assigned him Out state
- When creating an invoice, I define Tax Category at the Invoice level too
- Now, when I add both items, It pickup up the location correctly and applies IGST however, the rates it is applying are reversed. So, The Nill-rated item is now taxed at 18%, and the 18% item is taxed at 0%. Not sure how that works.
@Chintan_Shah1 have you added proper taxes template at item level ?
Yes, Please have a look at the screenshots
@Chintan_Shah1 No need to set taxes row in nill rated items,
Also you taxes setting seems wrong in 18% too.
Minimum ret is something like if you item net rate is 500 then apply 12% else 5%.
can you please share item tax template SS