Sale and purchase types (GST treatment)
Types tell each transaction how to treat tax — local CGST/SGST, interstate IGST, or exempt — so operators never decide tax by hand.
A type is a named tax treatment you pick on a transaction: for example *GST – Local*, *GST – Interstate*, or *Exempt*. Together with your organisation's state and the party's state, the type decides whether an invoice splits tax into CGST + SGST (same state) or charges IGST (different state) — or charges nothing at all.
Managing types
- 1
Open Masters → Sale/Purchase Types
Review the standard types created for you. Most businesses need no more than these.
- 2
Add a type only for a genuinely different treatment
A new type makes sense for cases like exempt supplies or special schemes — not for every customer.
- 3
Use it on the form
Pick the type on each sale or purchase. The tax columns on every line follow automatically.
Types and imported data
When importing transactions from a spreadsheet, a mapped Transaction Type / Sale Type / Purchase Type column applies the same logic: a matching type name is used as-is, and plain keywords like “IGST” or “Local” steer the tax split. See Importing your data.
Wrong split on an invoice?
Check three things in order: your organisation's state on the profile page, the party's state on their account, and the type chosen on the transaction. One of those three is almost always the culprit.
Was this page helpful?