Linked Tax Types

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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.

• 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".

• 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.