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Set up AvaTax to calculate India GST

This article applies to:AvaTax

If you want to use AvaTax to calculate tax on transactions made in India, you need to map your items to tariff codes.

AvaTax did not previously offer built-in support for India GST calculation, and it could be calculated only by using custom tax rules.

  • Calculation of India GST is now fully supported.
  • Custom tax rules for India are not supported when using this feature, which means that you don't need to delete or expire your existing custom tax rules. However, the tax rules do not apply to India GST calculation.

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This feature is not compatible with all business applications. Contact your account manager for more information about supported business applications.

If your business application isn't compatible with this feature, refer to this guide instead.

Steps

  1. In AvaTax, go to Settings > Where You Collect Tax.
    1. Select the VAT/GST tab.
    2. Select Add a Country Where You Collect VAT/GST.
    3. Select India from the list of countries.
    4. Select Add Selected Countries.
  2. Optional: If you collect local taxes in any of the Indian states or union territories, select Add Regional Collection Authorities in India to select them.
    1. Select the Indian states or union territories where you collect local taxes.

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      Note

      If you don't select a state from this menu, the state is not listed as a taxing jurisdiction for transactions in that state.

    2. Select Add Selected Regions to save your changes.
  3. Select Settings > What You Sell.
  4. Select Add an Item.
  5. Enter an item code and description.
    The item code must match the name of the product, service, or charge as it is recorded in your business application.
  6. Select the Avalara tax code that best fits your item.  
    A list of codes displays when you start typing.
    The Avalara tax code is used to calculate tax in all countries except India.
  7. Select Add or Update Tariff Codes to add a tariff code.
    • Select India from the Country list.
    • Enter the Harmonized Tariff code or Services Accounting Code that best fits your item.
      • The Harmonized Tariff code or Services Accounting Code is used to calculate India GST.
      • A list of the available HS Codes and Service Codes is available here
      • For more information, refer to the Government of India Central Board of Indirect Taxes and Customs guide.
    • Select Save to save the tariff code.
  8. Select Save.

Your transactions in India are calculated based on the tariff code assigned to each item. 

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