Tax Groups
Tax Groups are the logic layer between your tax components and the people you trade with. Where Taxes define rates and accounts, Tax Groups decide which of those rates actually apply to a given customer or supplier when a transaction is raised.
Where to find it
Go to Taxes Module > Tax Groups.
Tax Groups Inquiry List
| Column | Description |
|---|---|
| Description | The group's display name, such as "GST 18%" or "Inter-state IGST". |
| Tax Type | The statutory category the group falls under. |
| Taxes Included in Group | The individual components bundled in — CGST and SGST, for instance. |
| Shipping Tax | Which tax in the group applies to shipping and freight charges. |
Adding or Updating a Tax Group
| Field | Description |
|---|---|
| Description | A clear name, so whoever raises a sales order or purchase invoice picks the right one. |
| Tax Group Type | GST, IGST and so on — this is what makes the regional logic behave correctly. |
| Tax Selection Checklist | Every individual tax in the system is listed. Tick the ones this group includes. |
| Shipping Tax | The component applied to freight, where that differs from the goods. |
How Tax Groups Work in Transactions
- A tax group is assigned to a customer or supplier on their record.
- When a transaction is raised, the system reads that group.
- It applies the components in the group, filtered by the line item's item tax type.
- Each component posts to its own GL account, keeping the ledger balanced.
Groups attach to people, item tax types attach to things. Both have to agree before a tax is charged, which is why an exempt product stays exempt even for a fully taxable customer.
Management Tools
| Tool | What it does |
|---|---|
| Add New | Creates a group. |
| Edit | Changes the name, type or which components are included. |
| Delete | Blocked while customers, suppliers or transactions still use the group. |
| Show Inactive | Reveals retired groups. |
Important Note
Every customer and supplier needs a tax group. One left unset means transactions for that account calculate no tax at all — and the shortfall usually surfaces at the tax return rather than at the invoice.
Related pages
- Taxes — the components being bundled
- Item Tax Types — the item side
- Customers · Suppliers — where a group is assigned