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GST Not Getting Calculated for Slab Rates in Stock Items

GST gets calculated at the applicable slab rate defined in the stock item. If the slab rates cannot be applied for a particular price, the value entered as Rate (Incl. of Tax) appears as the Rate in the invoice. You need to manually enter the Rate per unit and tax values.

Let us consider the example of apparel costing Rs. 1,100 inclusive of tax, with the slab rates mentioned below:

Create slab rate for stock item

1. Press Alt+G (Go To) > Create/Alter > Stock Item.
2. Under GST Rate & Related Details, select Specify Slab-Based Rates and update the details 
3. Press Ctrl+A to save.

For more details, refer to the following scenarios in slab rates:

• Slab rate based on MRP
• Slab rate based on Item rate
• Slab rate based on price range – same item of different price per unit
• Tax rate calculation for change in slab rate
• Slab rate with apportioned additional ledger value/calculation based on including expenses
• Slab rate without apportioned additional ledger value/exclude apportion value

Record sales invoice

1. Press Alt+G (Go To) > Create Voucher > press F8 (Sales).
2. Press F12 (Configure) and enable the option Provide Rate Inclusive of Tax for Stock Item.
3. Select the stock item and enter the Rate (Incl. of Tax).
   When slab rate cannot be applied on the Rate (Incl. of Tax), the same amount appears as Rate, and the tax will be calculated accordingly.
   

Let us consider tax calculation for Rs. 1,100, at 5% and 18%. You can see that higher or lower slabs cannot be applied.

• Tax calculation at 5% = 1,100*(5/105) = 52.38
  The stock item rate without tax is 1,100 – 52.38 = 1,047.62. This amount is higher than 1,000, hence does not fall in the 0-1000 slab rate.
• Tax calculation at 18% = 1,100*(18/118) = 167.79
  The stock item rate without tax is 1,100 – 167.79 = 932.21. This amount is lower than 1,000, hence does not fall in the Greater than 1000 slab rate.

In such cases, you can manually enter the required rate and record the transaction.

For more details, refer to Sales of Stock Items with Slab Rates.