Zoho Books lets you create and apply taxes to your transactions and stay tax compliant. In India, it is mandatory for businesses with a turnover of more than 20 lakhs per annum to be registered for GST. This section helps you configure your tax settings and keep track of all the taxes to be paid and received in your business. 

Note: This document is applicable only for the Indian Edition of Zoho Books.

GST Settings

If your business has been registered for GST, you can configure your taxes in Zoho Books. These taxes will be included while you create a transaction, generate tax reports and so on. You might have been prompted to enter your tax details when you first set up the organization. If you had skipped it, or if you would like to edit your settings, here’s how you can do it:

Insight: The Goods and Services Tax Identification Number (GSTIN), is a unique 15 digit identification number issued by the tax department upon successful registration of GST.

Insight: Business owners whose aggregate turnover is less than Rs. 1.5 crore (less than 75 Lakhs for North-Eastern states) can register under the composition scheme. They cannot claim Input Tax Credits of supply GST exempted goods.

GST Settings

Insight: While creating items, enable the It is a digital service option to classify it as a digital service. You can create a new tax rate for it and the transactions will reflect in the Overseas Digital Tax Summary report.
  If a sales transaction contains a digital service along with goods, it will be treated as a service associated with the goods. In this case, only IGST 0 can be applied as the tax rate.

GST Settings

This will update your tax settings that will reflect in your transactions, reports and returns. If would like to file your GST from Zoho Books, you will have to enable online filing. 

Manage Additional GSTINs

If your business is eligible for multiple GSTINs, you can associate an additional GSTIN with a customer/vendor’s new address and track the taxes in your transactions accordingly. To associate GSTIN:

Add Additional Address Manage Tax Informations from Tax informations Add new tax information Save and select new tax

Each time you choose an address while creating a transaction, the corresponding GSTIN will be used.

Corresponding GSTIN displayed in transactions

Insight: The Tax Information (GSTIN and Place of Supply) associated with the address while creating the contact will be considered as the primary tax information.

Online Filing Settings

Zoho Books lets you to connect your organization with the GSTN to file your returns directly or push your data to the portal and file your returns. For this, you will have to enable online filing in Zoho Books. Here’s how:

Online Filing Settings

Default Tax Preference

Based on the goods and services you deal with, you will be able to select the default tax rate that’s applicable for your business. You will be able to manually update the tax rate for each item in its creation page or this tax rate will be applicable. To set this:

Default Tax Preference

Tax Rates

In this section, you can create the tax rates that are applicable for your business based on the goods and services your business deals with. 

Create Tax Rates

If you have registered for GST, default tax rates will be created for you already. If you would like to create a new tax rate:

New Tax Rate

You can create a tax rate for digital services by marking the checkbox near This tax will be applicable only on digital services for overseas customers in the pop-up. You will have to enter the required tax rates and select the country to which you’re trading.

New Tax Rate

Create Tax Groups

You can group more than two taxes together and apply it on your transactions. Let’s say you have to charge your customers a newly introduced cess rate, you can then create a tax group with your regular tax rate and the cess to apply them on your invoices. 

The same is the case of your regular GST tax rates, the rate 18% is tax group of 9% CGST and 9% SGST which is available by default for you. 

To create a new tax group:

New Tax Group

Edit/Delete Tax Rates

To edit or delete a tax rate:

Warning: Editing the tax rates will update them in active recurring profiles you had created as well. 

Edit/Delete Tax Groups

Tax Exemptions

Some goods and services under the GST regime are exempted from tax. Businesses will also not be able to claim ITC on their sales. Here’s a  list of all the items that are exempt from tax. You can create tax exemptions in Zoho Books and apply them to items while creating invoices. Here’s how:

Tax Exemptions

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