Skip to main content
Avalara Help Center

Create custom tax rules for India and connect them to tax codes

This article applies to:AvaTax

If you want to use AvaTax to calculate tax on transactions made in India, you need to use tax codes and tax rules set up specifically for India.

Before you begin

Decide if you want to use existing tax codes or if you want to create custom codes. Then, decide which rates to use for what you sell.

Download the tax rule template based on the type of tax codes you're using:

Steps

  1. In AvaTax, select Settings.
  2. Next to Custom Rules, select Manage.
  3. If you decide to use custom tax codes, create them for India. (If you're using existing tax codes, continue to the next step.)
    1. On the Custom Tax Codes tab, select Add a Custom Tax Code.
    2. Select Other for the Type.
    3. Enter a tax code and description from the table below.
      Tax code Description
      GST-00 Zero-rated GST
      GST-05 Overall GST rate of 5%
      GST-12 GST overall rate of 12%
      GST-18 Overall GST rate of 18%
      GST-28 Overall GST rate of 28%
      GST-28+CESS-12 Overall GST rate of 28% plus added CESS of 12%
      GST-nil Not subject to GST or nil rated
    4. Select Save Custom Tax Code.
    5. Repeat until you have custom tax codes for each line in the table above.
    6. In your business application, assign what you sell in India to the custom codes you just created.
  4. Make changes to the prefilled template to create your tax rules.
    1. Open the template for the type of tax codes you're using and make adjustments as needed. If you're using your existing tax codes, make changes to the yellow cells and add or delete rows as needed.
    2. Save the template file with your adjustments
  5. Go back to the Custom Rules page in AvaTax and select the Tax Rules tab.
  6. Select Import Tax Rules.
  7. Upload the tax rule import template for India.

Your transactions in India are calculated based on the tax rules you created. 

  • Was this article helpful?