# Linked Tax Types

**YouTube:** [How to Implement GST or Other Taxes Based on Price Slabs in Purchase ?](https://www.youtube.com/watch?v=Eaj3Al1x2Hc\&t=135s)

## How to Implement GST or Other Taxes Based on Price Slabs in Purchase?

In **Logic ERP**, you can automate tax recalculations in **purchase transactions** when linked tax types are defined. This ensures accurate **GST application** based on item values, preventing tax calculation errors.

### **Linking Tax Types Based on Rates**

* Navigate to the Setup and expand Setup Taxes 
* Then click on **Link Tax Types (Rate Basis) - Purchase.**

<figure><img src="/files/nMYaHT0rEZa3BVn31k5w" alt=""><figcaption></figcaption></figure>

* Predefined tax settings apply GST based on item value:
  * **Apparel:**
    * **₹1000 or less** → **5% GST**
    * **Above ₹1000** → **12% GST**
  * **Footwear:**
    * **₹1000 or less** → **12% GST**
    * **Above ₹1000** → **18% GST**

### **Issue Without Auto-Refreshing Taxes**

* Create a **Purchase Entry** without enabling the feature.
* If an **apparel item** is entered at **₹500**, GST of **5%** applies.
* When the price is later **increased to ₹1100**, the tax remains unchanged, leading to errors.

### **Enabling Auto-Refresh for Taxes**

* Navigate to the **Purchase Voucher Configuration.**
* Under **Other Settings 2**, locate the option **"Linked Tax Types".**

<figure><img src="/files/kyWAECCpMnFDjvOurdYh" alt=""><figcaption></figcaption></figure>

* Three options are available:
  1. **Not Applicable** (Default) → Taxes remain unchanged.
  2. **Refresh Row Wise** → Taxes update instantly when the rate changes.
  3. **Refresh Before Save** → Taxes update only upon saving the voucher.

### **How Auto-Refresh Works**

* **Using "Refresh Row Wise"**:
  * If an item is entered at **₹500**, GST of **5%** applies.
  * If the price is updated to **₹1200**, the GST **automatically updates** to **12%**.
* **Using "Refresh Before Save"**:
  * Enter an item with **₹500** (5% GST).
  * Change the rate to **₹1300** and save the voucher.
  * The system updates GST to **12%** after saving.

### **Conclusion**

This feature in **Logic ERP** ensures **automatic GST updates** based on item value, preventing tax miscalculations and ensuring compliance with tax regulations.<br>


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