Due to the new announcement regarding amendment of GST tax rate to 0%, business owners are required to change their product's tax code to SR-0 with 0%. Total value of supplying these products will be recorded under column 5(a) in GST-03 form. As for input tax, TX will be changed to TX-0.
We had provided a simple method to update all your products in just one click. Simply go to "GST > GST Settings" and click on Update Product Tax Code. This will change all your SR/ZRL/ZRE/DS product to SR-0 and all TX/ZP/IM/BL product/expenses categories to TX-0. This will also set your default supply/purchase tax code to SR-0 and TX-0.
If you prefer to choose which product to change its tax code, you may follow the below method:
1. Go to "Product/Services > Find the product you wish to change tax code > Edit", change the Output tax code to SR-0. Now when issue invoice, the product will become SR-0 and 0% rate. Similarly, you can change the Input tax code to TX-0.
If you prefer to keep the product tax code first, but still want to be able to issue a Tax Invoice with SR-0 tax code, you may do the following:
1. Go to "My Biztory > Sales", enable Able to set item GST. Now when creating Sales Invoice, you may untick the 6% checkbox and the item will become 0% rated with tax code SR-0. (p.s. You can also do the same for Purchase, however Expense does not support this feature at the moment)
For Expenses category, you may also create the same category again with another tax code. Then you can choose between tax code TX or tax code TX-0. (p.s be sure to assign them to the same Associated Account for proper bookkeeping)