GST(Tax) not calculated correctly

Hi @manoranjan11

For better assistance, can you provide screenshots showing the tax setting on your end? For screenshots, I recommend https://snipboard.io/ for easily sharing screenshots – please follow the instructions on the page, then paste the URL(s) in your reply.

Looking forward to hearing from you!

Hey,

this is the ss – https://snipboard.io/LfK7qJ.jpg

Hi @manoranjan11

Thanks for sharing your tax setting. I can see that you are using the “Yes, I will enter prices inclusive of tax” setting. Can you please share the screenshot of your Standard Tax setting as well?

Looking forward to hearing from you!

this is the settings https://snipboard.io/qsLkDi.jpg
the gst % is 5 which is split equally between all SGST, CGST and IGST.

Hello manoranjan11,

Thank you for your reply.

I went to your site and added this product to the cart and proceeded to the Checkout page.

The taxes include ?286 CGST and ?286 SGST.

Let’s do some calculations:
Price excluding tax = 12000 – (286+286) = 12000 ?572 = 11428.
CGST?Percentage = (286/11428) x 100 = 2.50
SGST?Percentage = (286/11428) x 100 = 2.50
So, the CGST is 2.5%, and the SGST is 2.5%.
The total GST is 5%.

Could you please show me where you saw 4.7% GST?
Screenshots will be helpful for better understanding.

Looking forward to your response. ??

actually its not like that – if the product is Rs 12,000 then the 5% tax should be 600(300 SGST and 300 CGST). but here its 286 +286 = 572 which is around 4.77% of 12000.

please help me in this

we manually don’t add the tax in products. whatever price you see is inclusive of GST and we do not split it. we just want to show the customer the split so they know we compliance with GST.

Hi @manoranjan11

I understand that you’re entering your product prices inclusive of tax and you expect WooCommerce to calculate and display the tax amount at checkout.

However, the tax calculation seems a bit off, and I can see how that can be confusing. When you set your prices inclusive of tax, WooCommerce subtracts the tax from the total price based on the tax rate you’ve set.

In your case, if you have a product priced at Rs 12,000 and you’ve set the tax rate at 5%, WooCommerce will calculate the tax as follows:

• Total Price = Rs 12,000
• Tax Rate = 5%
• Tax Amount = Total Price – (Total Price / (1 + Tax Rate))
• Tax Amount = Rs 12,000 – (Rs 12,000 / 1.05)
• Tax Amount = Rs 571.43 (approx)

This is why you’re seeing a tax amount of Rs 572, which is approximately 4.77% of Rs 12,000.

If you want the tax amount to be exactly Rs 600 for a Rs 12,000 product, you would need to adjust your product prices or tax rate accordingly.

Moe info on how Tax works in WooCommerce can be found here: https://github.com/woocommerce/woocommerce/wiki/How-Taxes-Work-in-WooCommerce

I hope this clears up the confusion. If you have any further questions, feel free to ask.

i understand this, but this not how we calculate tax here.
i can neither update the pricing not the tax as we have to comply with 5%

please help me in figuring this out because the site is already live and the current invoice generated is showing the 4.77 tax which is misleading to the customers.

please help

Hello manoranjan11,

Thank you for your reply.

Actually its not like that – if the product is Rs 12,000 then the 5% tax should be 600(300 SGST and 300 CGST). but here its 286 +286 = 572 which is around 4.77% of 12000.

Please note that you are entering the price including the tax.
This means 12000 is the price that already includes the 5% GST tax.

If you are caculating 5% of 12000 to calculate the GST tax that would be incorrect calculation and you will charging more tax than required.

To clarify this confusion, please tell me what is the actual price of this product without tax?
Looking forward to your response. ??

Best regards.

its not like that actually, we do not have separate pricing excluding GST. whatever price is there, it is including everything. we do not keep a excluding GST pricing as such.

Also i was checking few videos for the same on YouTube and they are setting up exactly the same way but their calculation is coming exact % that they put and they are also calculating the way i did so i don’t understand why on my end its not coming up properly.

Looking forward to assisting me this

Hey, @manoranjan11!

Do you mind sharing the video you saw so we can take a look and assist you further?

Looking forward to your reply.

Have a wonderful day!

https://www.youtube.com/watch?v=M3UboncaWxE

these 2 any there are few more but thee pattern for all of them are same

please have a look and let me know

Hello manoranjan11,

Thank you for your reply.

I watched the video you shared.
In the video, the product prices are added exclusive of tax.
If you want to follow this method you need to update the Tax settings.

If you check this part of the video, the product cost without tax is 40 x 10 = 400.
Then there is 6% of SGST for Bihar.
6% of 400 is 24.
At the end, the total cost is 400 + 24 = 224.

If we apply the same method to your site, first you need to update the tax settings to “No, I will enter prices exclusive of tax”. Then you need to determine the price of the products without any taxes and enter those prices into the Product settings.

After this, the taxes you set up will be applied correctly on the checkout page.
Please let me know if you still have any questions.

Best regards.

yes, this is just 1 video without inclusive of gst in price.

but if i’m adding without gst also then also its calculating 600Rs as tax for a 12000Rs product which is 5% but why is it that when i enter it with GST its calculating 4.7% is my main concern.

i want to sticky to the current setting but the % needs to 5. please help me how that can be done cuz there something that is messing something not sure.

please help

Hello manoranjan11,

Thank you for your reply.

I understand your concern and realize how important it is to calculate correct tax values.

Let’s approach this problem again with a fresh mind.
Could you confirm whether you are adding prices including the tax or excluding tax?

Then you need to calculate how much tax in Rs you are paying for the 12000Rs product.
Could you calculate this manually just for my understanding?

These two answers will help understand what path you want to follow for tax settings.
I will be happy to guide you further once I have these answers.

Looking forward to your response. ??

Best regards.