Tax is Not applied when Price is inclusive Tax based on Seller Location

  • Resolved rakshitsukanta

    (@rakshitsukanta)


    4 years, 4 months ago

    Hello Guys,
    I am struggling to find out a solution regarding Tax setup in WooCommece. I shall describe the scenario and will provide associated screenshots (all inside Link page) if needed. Please help me.

    P.S.- I am using WCFM – Multivendor with WooCommerce and WCFM relies completely on WooCommerce Tax setting. So, I think, it is the right place to ask about my problems.

    I am from India and GST is the Tax system here. I am well aware of the Rules regarding GST with E-Commerce operators or to be simple for Multi-Vendor Physical Products Marketplace.

    GST Rules for Marketplace:
    1. GST is not applied based on Shop/Marketplace Address
    2. GST is calculated based on Buyer’s Billing Address from Seller’s Address ( in case of Marketplace )
    3. If Seller and Buyer both are from Same State, divide Total GST in CGST and SGST as 50-50 (e.g. 12%GST is divided as 6% as CGST and 6% as SGST)
    4. If Seller and Buyer are from Different state the GST will be total as IGST (e.g. 12% GST will be 12% IGST)
    5. There are other Rules like TCS and TDS but these are not associated with my current situation.

    Our Requirements:
    1. We need to collect GST from Buyers and deposit all to Govt. GST portal as per Sellers GSTIN (GST Number) with breakdown like CGST, SGST and IGST stated above.
    2. Product Price needs to be shown as “inclusive GST” at Shop, Cart and Checkout. (We will divide GST, if any at Invoice level. Not in Order Details.)
    3. To simplify the scenario, currently we are allowing Free Shipping (to exclude Shipping Tax calculations. I know Shipping is always calculated Excluding Taxes in WooCommerce by default.)

    What we have achieved:
    1. We have created different Tax (GST) rates as “Additional Tax Classes”.
    See Linked Screenshot:
    2. Allowed Seller to use the appropriate “Tax Class”.See Screenshot:
    3. Screenshot of Tax Options:

    Result:
    If I browse the Shop or try to purchase a product from anywhere except the Seller’s State, everything is working fine as expected.
    See screenshots:

    Problem:
    However when any Buyer from Seller’s State want to purchase the same product; no Tax is being applied.
    See Screenshots:

    I have checked with both “Price entered with Tax” options (Yes/No) and have tried “Prices including tax – Experimental Behavior” as
    https://github.com/woocommerce/woocommerce/wiki/How-Taxes-Work-in-WooCommerce

    But no luck! ??

    I guess I am not able to understand the “Tax Rate Priority”, properly so, this error is happening. Can anyone here can help me?

    • This topic was modified 4 years, 4 months ago by rakshitsukanta. Reason: Too many external links of screenhot. All screenshots are in main link

    The page I need help with: [log in to see the link]

Viewing 1 replies (of 1 total)
  • Thread Starter rakshitsukanta

    (@rakshitsukanta)

    Ok problem is solved using custom Country State codes.

    /**
 * Add or modify States
add_filter( 'woocommerce_states', 'custom_woocommerce_states' );

function custom_woocommerce_states( $states ) {

  $states['IN'] = array(
    'BH' => 'Bihar', 
    'ME' => 'Meghalaya',
    'MI' => 'Mizoram',
    'UT' => 'Uttarakhand'
  );

  return $states;
}
*/
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