Tax Groups combine multiple tax rates that apply together on a single transaction line.
On this page
A Tax Group is a named bundle — for example GST 18% or a VAT rate — that groups related Taxes together. The group itself only has a Name and Description; the link is made on each individual tax, which references its Tax Group. For example, CGST 9% and SGST 9% can both point to the same GST 18% group so they are shown and summed together in reports.
On a bill line, the system uses the item's Tax Class and the supply type (Intra State, Inter State, Export, Import) to resolve the applicable individual taxes directly — a tax class maps to taxes, not to a tax group. Each tax calculates per its Rate and Applicable To and posts to its own tax ledger. The tax group only comes into play as a grouping/label for those taxes in reporting.
Connected reports: Tax Report, Bill Wise Tax Wise Purchase, GSTR1, GSTR2, Tax Report Detailed.
What is a tax group?
A named label (e.g. GST 18%) that bundles related taxes together for reporting. Individual taxes reference the group.
How do taxes join a group?
On the Tax master, set the Tax Group field. The tax group screen itself only holds a name and description.
Does a tax class pick a tax group?
No. A tax class maps directly to individual taxes. The group is only used to display and total those taxes together.
What if the group total looks wrong on a bill?
Verify each tax's Rate and Applicable To in Taxes.