This module allows the setting for taxes.Here all the tax classes are setup which need to be included in the Products section while adding and editing them. If these tax classes are not included in the Products section and are only created here,then the taxes won’t be charged for that product.
Admin can access this section by going into Admin Panel > Settings > Taxes.
This section contains following fields:
- GST: A switch box is given for enabling and disabling the GST. If the GST is enabled a text field will appear to enter the GSTIN. Only if this switch is enabled,will the GST be charged for the Indian clients. If this is disabled then no GST will be charged even if the tax classes are present.
However,if this is diabled and another tax class is created which is applicable for all the countries and states ,then that tax will be charged even for Indian clients.
- GSTIN: This text field appears when the GST is enabled. Here, the GST no. is to be entered which will be visible on all the invoices generated
- Prices Entered with Tax: This switch determines whether the taxes will be inclusive or exclusive of the taxes. If inclusive is selected then the prices that are shown on the cart will be inclusive of taxes and they won’t change on the checkout page ie the taxes won’t be applied exclusively on the checkout page.
However, if the prices entered are exclusive of taxes,then then the prices on the cart page will be the regular price of the product but on the checkout , the final price that is shown will include the respective tax that is applicable upon a particular product on the basis of the country and state. If no tax is applies for that particular country ,the regular prices will be shown.
- Rounding Tax At subtotal: This determines weather the final price that is shown on the checkout page will be rounded of price or the exact price along with decimal values. If the rounding is enabled,then the rounded off price will be shown, else the price along with their decimal values is shown.
Click on Save to retain the Tax Options details
Create Tax Classes
This section is used to define the tax classes for different countries and states. On the right-top of the page a create button appears which shows a modal popup for defining the tax classes. Here if the **Tax Type** option is selected as ‘Others’ that means entries have to be made for the country apart from India. All the fields for selecting countries and states and entering taxes will automatically appear and the details can be filled and saved.
However, if any other ‘Tax Type’ is selected other that ‘Others’ the dropdown for countries is disabled and India is selected by default. All the other option for entering the States and taxes vanishes automatically. This is because if the tax type selected is for Indian countries then the GST is calculated from other table saved in the database.
Once the tax class is created and saved it will appear in a datatable present at the bottom of the page with all the details enetered. Now the tax calculation that happens has multiple scenarios:
If the status is enabled
1. If the GST is enabled and the country selected is India, you need to create all the 3 GST Tax classes namely CGST+SGST(for Intra States), IGST(for the Inter States) , CGST+UTGST(for Union Territories). If all these tax classes are not created then Tax class for that particular particaular state won’t be charged. For example, let’s suppose our Origin State is Karnataka and the user state is Maharashtra. So now if we have created a tax class named Intra State GST which will be applicable only in Karnataka then no tax will be charged for the user from Maharashtra.
2. If the GST is disabled, then no matter if all the tax classes for India are added, no taxes will be charged. But, if some tax class is created which is applicable for All Countries And State then that tax will be charged for Indian Clients .
3. If the client is from a country other than India, and if the tax rate is entered for any country and any state then the taxes will be applicable for all the countries and states.
4. If the client is from country other than India,and if the tax rate is entered for a particular country,then the taxes will be charged for all the states of that country.
5. However, if a particular state of a country is selected then tax rate will be charged only for that state of that country
6. If user is from other country and GST is not enabled, that won’t affect the calculation of tax rates for that country.
If the status is disabled
1. If the status is disabled in any scenario for any tax class then no taxes will be charged for that particular country or state. So if we want to stop charging taxes for any country , we can disable the taxes and no taxes would be charged.
Edit Tax Classes
Here we can edit the tax class details which we have created earlier. Same scenarios mentioned above will be applicable after editing the tax classes too.
P.S. Remember to include the taxes which you want to be applicable in the Products Sections also for establishing a relationship between tax classes and that particular product. If not added, the tax calculation won’t happen.