Same Item but different tax while Purchase & Sales

I have a scenario that, I will Purchase an Item with Tax 5% and sale that item in 12%. How should i manage this?


First create “Sales Taxes and Charges Template” and “Purchase Taxes and Charges Template”

Add the Tax slabs as per your requirement and use the above templates while sale and purchase respectively.

I am facing this same issue due to Indian Govt rule of charging multiple rate based on the selling value of item.

In my case when Bedsheets are sold at rate less than Rs.1000 we have to charge 5% GST and if sold above Rs.1000 then 12% GST. (Also this same issue is there in footwear category too, i.e less than Rs.1000 at 5% and more than 1000 at 12%).

The issue arises when my purchase rate is less than Rs.1000 (so i would have paid 5% GST in my purchase) but sale rate is more Rs.1000 (in which case 12% GST would be applicable)

Request the experts to kindly help with a solution since our implementation is stuck due to this.

Thanks for the reply…
And sorry to mention that i am using “Item Tax”. In that case how it will apply???


Go to the item in which you want to sale and purchase with different tax rate
In that item, go to the “Item Tax” in that item tax table, add your sale 12% tax and purchase 5% tax.

Afterwards go into that particaular tax slab head, make its value as “0” (zero) and save the account head (This can be done in COA)

So while selecting the item for sale, automatically the 12% will be available into your “Tax Breakup” table. Save the form your amount will be refelected into Grand Total and the you can submit .

Same process you can apply in purchase flow.

Define two tax. Input GST and Output GST. They both can be different. So for an item A you can have SGST Input and CGST Input as 2.5% and SGST Output and CGST Output as 6%. In the Purchase documents, use input taxes and in sales documents use output taxes.
Hope this helps.