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Taxes

Zoho Checkout lets you create and apply taxes to your payment pages 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.

GST Settings

If your business has been registered for GST, you can configure taxes in your Zoho Checkout organization. These taxes will be included when you create payment pages. Here’s how :

  • Go to Settings and select Taxes.
  • Under GST settings check the Is your business registered for GST? option.
  • Enter the 15 digit GST Identification Number (GSTIN).
  • Click Save.

You will have enabled GST in Zoho Checkout.

Default Tax Preferences

Based on the good/service you’re offering, you can configure your default tax preferences. This can be defined for both interstate and intrastate transactions. Here’s how:

  • Go to Settings and select Taxes.
  • Navigate to Default Tax Preferences.
  • Select the default Intra State Tax Rate and Inter State Tax Rate applicable to your business.
  • Click Save.

By default, these tax rates will be applied to all the payment pages you create.

For items requiring different tax treatments, you can configure different tax rates during payment page creation or you can edit an existing page.    

Tax Rates

The tax rates will be pre-populated based on the different GST tax slabs prescribed by the Government. In case you have to create any new tax or tax group, you can do so.

Create Tax Rates

To create a new tax rate:

  • Go to Settings and select Taxes.
  • Navigate to the Tax Rates tab.
  • Click +New Tax.
  • Enter the Tax Name, Rate(%) and Tax Type.
  • Click Save.

A new tax rate will be created.  

Create Tax Groups

You can group two or more taxes together and apply them to your transactions. For example, if you need to charge your customers a newly introduced cess in addition to your regular tax rate, you can create a tax group that combines both and apply it to your invoices. Similarly, the standard GST rate of 18% is available by default as a tax group, which combines 9% CGST and 9% SGST.

To create a tax group:

  • Go to Settings and select Taxes.
  • Navigate to the Tax Rates tab.
  • Click +New Tax Group.
  • Enter the Tax Group Name and select the Associated Taxes
  • Click Save.

A new tax group will be created.

Edit Tax Rate/Tax Group

Zoho Checkout allows users to edit tax rates and groups. Here’s how:

Warning:

  • Editing an existing tax rate will mark the current version as inactive and apply the new rate to all selected transactions.
  • The updated tax details will reflect in all transactions where the tax has been applied across all Zoho Finance apps.
  • Remember that it might take some time for the tax details to be updated in the existing transactions.
  • Go to Settings and select Taxes.
  • Navigate to the Tax Rates tab.
  • Hover over a tax rate or tax group and click the Edit icon.
  • Make the necessary changes review and check the Terms and Conditions.
  • Click Save.

A tax rate/tax group will be updated.

Delete Tax Rate/Tax Group

Warning:

  • A tax rate or group associated with existing transactions cannot be deleted.
  • A tax rate or group set as the default preference cannot be deleted. You must first assign a different default rate or remove before deleting.
  • Go to Settings and select Taxes.
  • Navigate to the Tax Rates tab.
  • Hover over a tax rate or tax group and click the Bin icon.

The tax rate/group will be deleted.

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 Checkout and apply them to your payment pages. Here’s how:

  • Go to Settings and select Taxes.
  • Navigate to the Tax Exemptions section and click + New Exemption.
  • Enter the Reason and Description.
  • Click Save .

You will have added a tax exemption.

Configuring GST for Items in your Payment Pages

You can configure GST for goods and services while creating or editing a payment page. Here’s how:

  • Go to Payment Pages.

  • Create a new payment page or click Edit next to an existing one.

  • Enter the HSN/SAC code under Product Details.

  • Navigate to Tax Information under Configure Page.

  • Choose your Tax Preferences from the dropdown.

  • Taxable: Select this to apply taxes and configure specific product tax details.

  • Non-Taxable: Select this for tax-exempt items and choose a valid Exemption Reason.

  • Out of Scope: Select this option for transactions that fall outside the scope of tax regulations and are not subject to tax.

  • Non-GST Supply: Choose this option for supplies that are not covered under GST, as per applicable tax rules.

  • Click the Edit icon near Intra State Tax Rate or Inter State Tax Rate and select the rates from the dropdown.

Insight: If you’ve set a default tax preference, these fields will be prefilled automatically.

  • Click Save & Publish.

Now, the tax rates chosen will be applied to the payment page you’ve created.

Note: These tax rates apply only to this specific payment page. All other pages will continue to use your default tax preferences unless you manually update them.

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