GST Tax rate calculation is inaccurate

  • Resolved pooja2608

    (@pooja2608)


    5 years, 5 months ago

    Hi,

    I have 2 tax slabs – 5% (For prices below Rs.1000) and 12% (For prices above Rs.1000). I am using different tax classes for both tax slabs. All the tax rates are correct. But still, the tax calculation is wrong.

    1. For a product priced Rs.699 – The CGST and SGST should be Rs.17.47 each. But woocommerce is calculating it as Rs.16.64 each. Same with a product priced at Rs.1199. It should be Rs.71.94 but it’s calculating as Rs.28.55.

    2. Now, when a buyer buys both of the products together, then Total GST = GST on first product + GST on second product and so on.
    If a customer has 2 products in a cart (Rs.699 and Rs.1199), the tax should be Rs.89.41 (CGST and SGST each) but again the calculation is wrong. It’s calculating it as Rs.45.19 (CGST and SGST each).

    I have entered the prices inclusive of tax. Also, please look at the screenshots of wordpress settings – General Tax settings, Tax settings for 5%, Tax settings for 12%

    The page I need help with: [log in to see the link]

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  • Tax is always calculated as a percentage of the money that the seller gets, its not a percentage of the money that the buyer pays.

    So if tax = 5%, and the buyer pays Rs.699 inclusive of tax, then
    seller gets Rs.699 / 1.05 = RS.665.71
    government gets Rs.665.71 x 5% = Rs33.29

    Thread Starter pooja2608

    (@pooja2608)

    @lorro Ohh got the calculation now. Thanks a lot!!

Viewing 2 replies - 1 through 2 (of 2 total)
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