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Tax code in item master

I am wondering about what is TAX CODE In item master meant. Is it same as TAX ID or Tax Rule or something else. I am confused.


Product Tax Code is a label that is assigned to a product or product group and indicates the tax obligations and exemptions customers have when they purchase this product. These tax obligations are taken into account when a customer (user) submits an order. Product Tax Codes (PTC) are codes in Seller Central that are mapped to GST rates noitified by the Government.

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