# Default Tax Type

**YouTube:** [How to Set a Default Tax Type or Category in Sale Bill?](https://www.youtube.com/watch?v=IUSAzB0_yiA)

## How to Set a Default Tax Type or Category in Sale Bill?

This tutorial will guide you through the steps to set a **default tax type** in the billing configuration. This feature ensures consistency and saves time by automatically applying a predefined tax rate during billing.

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### **Configure the Default Tax Type**

* Navigate to the **Sales Voucher Configuration**.
* Select the relevant **Billing Series**.
* Click on the **“Other Setting 1”** tab.
* Then click on **“Other Settings”**.
* Locate the option labeled: **“Default Tax Type”**.
* From the dropdown menu, **select the desired tax type** (e.g., 5% GST).

<figure><img src="https://4031188996-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FXMVkjt8zqHBQX1c9QvFS%2Fuploads%2F5PzWYleMc6fG4hCOB1oN%2FConfiguration%20Setup.png?alt=media&#x26;token=556476dd-2d02-4c9d-931a-ad8e6459adda" alt=""><figcaption><p>As mentioned above, follow the given steps and select the appropriate option from the dropdown as per your requirement.</p></figcaption></figure>

* Click **OK** to confirm.
* **Set Bill-Wise Calculation Mode**
  * Navigate to **“Other Setting 2”**.
  * Set the **Calculation Method** to: **“Bill Wise”**.

<figure><img src="https://4031188996-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FXMVkjt8zqHBQX1c9QvFS%2Fuploads%2FwfoNXO0AqrtHuHIC7moh%2FCalculation%20Method.png?alt=media&#x26;token=3810a96c-df1a-4a9c-8c6e-b037b4e5f9e5" alt=""><figcaption><p>As shown in the picture, set the calculation method to <strong>Bill Wise</strong>.</p></figcaption></figure>

* Click **Save** to apply all changes.

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### **Verify During Billing**

* Proceed to create a **Sales Bill**.
* You will observe that the **default tax type (e.g., 5%)** is **automatically applied** to all items.
* This occurs regardless of:
  * The item category (e.g., Apparel)
  * The price threshold (e.g., under or over ₹1000)

<figure><img src="https://4031188996-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FXMVkjt8zqHBQX1c9QvFS%2Fuploads%2FQ5DeqxFzzPakckn1uOi2%2FDefault%20Tax%20in%20Sale%20Bill.png?alt=media&#x26;token=6d322995-881e-4000-a019-e8f490d45ad1" alt=""><figcaption><p>As you can see in the picture, 5% tax has been applied to all items.</p></figcaption></figure>

> *Example: In the Apparel category, items under ₹1000 should be taxed at 5%, and above ₹1000 at 12%. However, with this setting, a flat 5% is applied to all, as per the default configuration.*

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### **Benefits**

* Speeds up billing by removing the need to select tax types manually.
* Ensures consistency across transactions.
* Helps avoid errors in tax classification for frequently used item types.