# Create 40% Tax Types
**YouTube:** [How to Create a 40 % GST Tax Slab in Logic ERP?](https://www.youtube.com/watch?v=-zDHdDwqOTE)
## How to Create a 40 % GST Tax Slab in Logic ERP?
In this tutorial, we’ll demonstrate how to **set up GST 40% tax slab accounts and tax types** in Logic ERP.
***
### Create GST Sale Accounts
* Go to the **Setup Menu** → open **Setup New Account**.
* Enter the account name: **GST Sale 40%**.
* Select **Account Type** as *Sale*.
* Define the **Default Tax** as **40%**.
* Set the **GST Type** as *Taxable*.
* Click **Save**.
Next, create the **IGST Sale 40%** account using the same steps.
***
### Create Output Accounts
* Enter account name: **CGST Output 20%**.
* Select **Account Type** → *Current Liabilities*.
* Mark it as a **Sales Tax Account**.
* Choose **GST Type** as *CGST*.
* Define **Default Tax** as **20%**.
* Click **Save**.
#### Repeat the same steps to create:
* **SGST Output 20%**
* **IGST Output 40%**
***
### Create GST Purchase Accounts
* Enter account name: **GST Purchase 40%**.
* Select **Account Type** → *Purchase*.
* Define **Default Tax** as **40%**.
* Click **Save**.
Next, create **IGST Purchase 40%** in the same way.
***
### Create Input Accounts
* Enter account name: **CGST Input 20%**.
* Select **Account Type** → *Current Liabilities*.
* Mark it as a **Sales Tax Account**.
* Choose **GST Type** as *CGST*.
* Define **Default Tax** as **20%**.
* Save the account.
#### Repeat the same steps to create:
* **SGST Input 20%**
* **IGST Input 40%**
***
### Define Tax Types for Sales
* Navigate to Setup\Setup Taxes and then select **"Setup Tax Types (Sale)"**
* Enter **Tax Description**: *GST Sale 40%*.
* Link it with the **GST Sale 40% Account**.
* Select **Sales Tax Account** → *SGST Output 20%*.
* Define **Tax 1** = 20% and **Tax 3** = 20%.
* In the **Tax 1 Account** column, select **CGST Output 20%**.
* Enable **Use for GST** and set **GST Type** as *CGST/SGST*.
#### Inclusive Tax Type Setup:
* **Tax 1** = 20%
* **Tax 2** = 40%
* **Tax 3** = 20%
***
### Define IGST Sales Tax Types
* Enter **Tax Description**: *IGST Sale 40%*.
* Link the **Sales Account** → *IGST Sale 40%*.
* Select **Sales Tax Account** → *IGST Output 40%*.
* Define **Tax 3** = 40%.
* Enable **Use for GST** and set **GST Type** as *IGST*.
#### For Inclusive IGST Tax Type:
* **Tax 2** = 40%
* **Tax 3** = 40%
***
### Define Tax Types for Purchases
* Navigate to Setup\Setup Taxes and then select **"Setup Tax Types (Sale)"**
* Follow the same steps as sales tax types.
* Instead of output accounts, link all **Input Accounts**.
* Save the changes.
GST 40% tax slab setup is now complete for both **Sales** and **Purchases** in Logic ERP.
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