Implement Scheme(Rs) on basis of Linked Tax Type Rate

YouTube: How to Apply Schemes to Move Items Into lower GST Slab in Sale Bill?

How to Apply Schemes to Move Items Into lower GST Slab in Sale Bill?

In this tutorial, we’ll learn how to configure and use the “Implement Scheme (₹) on Basis of Linked Tax Type Rate” feature in Logic ERP. This feature helps optimize tax savings by applying the scheme amount specifically to higher-MRP items, reducing their taxable value and the applicable GST.

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Access Sale Voucher Configuration

• Open the Sales Voucher Configuration window.

• Select the relevant billing series.

• Under "Other Settings - 1", click on "Other Settings".

• Then navigate to "Defaults - 2".

• Locate the option labeled as:

“Implement Scheme (₹) on Basis of Linked Tax Type Rate”.

• Keep this option disabled initially so we can observe its impact during billing.

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Configure Linked Tax Type Rate Basis

• Navigate to Setup\Setup Taxes and then select "Link Tax Types(Rate Basis) - Sale".

• Select the Tax Type you want to link.

• Choose the Rate Basis on which it should be implemented.

  • For example, select UD Net Amount.

• Click on UD Amount.

• Specify the amount slabs for the UD Net Amount.

• Ensure the “Scheme (₹)” option is ticked.

• Enter the required value and link it to the respective Tax Type.

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Review Scheme Configuration

Scheme Campaign

• Go to Setup → Scheme Campaign.

• Select the relevant campaign.

  • This campaign defines which items or item groups qualify for the scheme.

Scheme Item Group

• Go to Setup → Item Groups.

• Review the Scheme Item Group created.

• Confirm that the appropriate items are allocated to this group.

Scheme Campaign Slab Details

• Open Setup → Scheme Campaign Slab Details.

• Select the relevant Scheme Campaign.

• Verify the configured slab details for the scheme.

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Implement Billing with the Feature Disabled

• Go to the Billing Screen.

• Ensure the Scheme (₹) and Net Rate columns are enabled in Column Attributes.

• Generate a Sales Bill using eligible items.

• Upon saving, the Discount Window will display the applicable scheme.

• Select the scheme and click OK to continue.

Observation:

Since the feature is disabled, the scheme amount is distributed proportionally across all items based on their rate and quantity. The higher-MRP items do not receive a focused benefit, and the tax rate remains unchanged.

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Implement Billing with the Feature Enabled

• Return to Sale Voucher Configuration.

• Enable “Implement Scheme (₹) on Basis of Linked Tax Type Rate”.

• Save the configuration.

• Go back to the Billing Screen.

• Generate a new Sales Bill with items from the eligible scheme group.

• Save the bill and observe the discount window.

Observation:

• The scheme is now applied exclusively to higher-MRP items (e.g., those above ₹2,500 that were previously taxed at 18%).

• After applying the scheme, the effective MRP reduces, and the applicable tax rate is recalculated (e.g., reduced from 18% to 5%).

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Key Benefit

This feature helps:

• Optimize tax savings on high-MRP items.

• Lower overall GST liability by applying the scheme to targeted items instead of distributing it across all products.

• Work seamlessly with other existing scheme campaigns configured in the system.

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Result:

The “Implement Scheme (₹) on Basis of Linked Tax Type Rate” feature ensures that promotional schemes strategically reduce taxable values where it matters most, improving compliance and cost efficiency.