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tabkad12
March 28, 2021
Question

How do i apply GST on products

  • March 28, 2021
  • 1 reply
  • 0 views

When i am creating a product it is asking for entering a Tax rate. Upto here it is fine.

 

But when I check the tax rates I have IGST,CGST or SGST to choose from which is not correct.

 

On any product I should get an option just to apply the tax rate in %, then the IGST,CGST or SGST has to be calculated based on supplier address.

 

Any help with step guidance will be appreciated.

1 reply

MarsStephanieL
MarsStephanieL
March 28, 2021

Hello there, @tabkad12.

 

Allow me to share some details on how QuickBooks handles tax calculations.

 

The three options of Goods and Service Tax (GST) based on the aspect of inter-state and intra-state transactions. It will base on your company address and the customer's address. This is why you're seeing three tax options.

 

The Integrated Goods and Services Tax is collected together and distributed to the Central and State Governments. Central Goods and Service Tax and State Goods and Service Tax are collected directly by the Central and State Governments.

 

To ensure that you're using the correct tax type of the transaction, you can check the setup of your customer's address and your business address and it should be correct. I can show you the steps on how to correct the information:

 

For business address:

  1. Go to the Gear icon and select Account and Settings.
  2. Click the Company tab and navigate to the Address field.
  3. From there, ensure your business address is entered correctly.
  4. Once done, hit Save. 
     

For customer's address:

  1. Locate the Sales menu and choose Customers.
  2. Look for the specific customer and click the customer's name.
  3. Click the Customer details tab and select Edit.
  4. Enter the correct address and click Save. 
     

For your future reference, you may see this article: Setting up QuickBooks for GST. This contains sub-articles about running reports and FAQs about GST.

 

You can always comment below if you have further questions about GST in QuickBooks. I'd be happy to provide another detail and help you to succeed in your transactions. Enjoy the rest of your day!

T
tabkad12Author
March 28, 2021

Hi,

 

Thanks for your response.

 

I am attaching two screenshots in the attached pdf along with this post.

 

New Products-> Inventory -> Options

 

Under the New product option, we need to define a Tax for the new product. When I click on the dropdown option, I get all the tax rates defined. 

 

So for example I am creating a product with GST rate of 18%, I should have a tax rate option of 18% only without mentioning IGST,CGST or SGST. Simple GST rate of 18%. But unfortunately if you look at the second screenshot there are no such option which I can give to the new product as plain 18%.

 

Selection of IGST,CGST or SGST should be at the time of purchase not at the time of defining a new product.

 

Hope I was able to clarify my requirements and where is the confusion.

 

 

 

In quickbooks online

C
CharleneMaeF
March 28, 2021

Thanks for adding a sreenshot, tabkad12.

 

I'd suggest reaching out to our QuickBooks Support Team to further check why you can't select the correct tax rates. They're also equipped with tools to determine the main cause of this.

 

Here's how:

 

  1. Click the Help (?) icon at the top.
  2. On the Assistant tab, click Talk to a human.
  3. Enter your issue or question on the Type something field, then click the send icon.
  4. Choose I still need a human.
  5. Click Get help from a human.
  6. Select the Chat with us option.

 

To learn more about how GST works in QuickBooks Online, please see these article:

 

Additionally, you can run GST reports in QuickBooks. This helps you see the transactions that make up your data.

 

I'm just a comment away if you need further assistance in completing your other tasks. I always got your back.

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