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GST & VAT tax rules

The right GST or VAT on every line.

Mark each product taxable, exempt, zero-rated or out of scope, let tax rules pick the rate from where the sale goes and who the customer is, and switch tax off for a whole document when a sale carries none. Compound taxes split cleanly on the invoice and in the books.

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  • Taxable, exempt, zero-rated or out of scope, per product
  • Rules that pick the rate by place and party
  • A no-tax rule for a whole document
  • Compound taxes shown part by part

What is GST & VAT tax rules in Flowyana?

Flowyana tax rules are the part of the accounting software that decides how much GST or VAT goes on each line of a quotation, order, invoice or purchase bill. Each product is marked taxable, exempt, zero or nil rated, or out of scope. Rules pick the rate by where the sale goes and who the customer is, and you can switch tax off for one line or a whole document. It is built for businesses in India, the UAE, Saudi Arabia and other countries with GST or VAT.

Real invoices are mixed. A shop sells taxable goods next to zero-rated staples, a trader ships to another region or abroad, and some bills carry no tax at all. Typing a rate on every line invites mistakes, and each mistake reaches your tax return. Flowyana puts the decision in settings: the product says what it is, the rule says what applies, and the invoice follows.

Control stays with the right people. Turning tax off on a single line needs its own permission, custom lines can only use rates you have configured, and a document that needs no tax at all takes the No tax rule in one pick.

Tax is posted to your books as the document is. Compound taxes are shown part by part on the invoice and posted to a separate account for each part, and the Tax Returns report works from the same posted documents. Flowyana does not file returns with a tax authority or connect to government e-invoicing portals.

What it does

GST & VAT tax rules, in practice.

Tax treatment per product

Set each product as taxable, exempt, zero or nil rated, or out of scope. A product that is not taxable carries no tax, whatever rule applies.

Tax rules by place and party

A rule says which rate to use for sales or purchases depending on where the supply goes (same region, another region, same country, another country) and the party’s tax status, with a priority order.

A no-tax rule for a document

Pick the “No tax” rule on a quotation, order, invoice, purchase order or purchase bill and every line on it carries no tax.

Line tax switch with permission

On a catalogue line, a tax switch turns tax on or off for that line. Only people with the change-tax permission for that document can use it.

Rates chosen, not typed

A custom line takes one of your configured tax rates from a list, so nobody types a percentage by hand.

Compound tax in one pick

Choose one compound rate, such as a GST made of two parts, and the invoice shows each part with its own amount.

Posted part by part

Each part of a compound tax goes to its own tax account in the books.

Place of supply prompts

When the branch and the customer sit in different regions, the form says so and offers the matching rate in one click.

Prices with or without tax

Choose whether your prices already include tax; totals are worked out either way.

Rates for your country

Tax rates are loaded for your country and can be changed or added to by the workspace owner.

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How it works

GST & VAT tax rules, step by step.

  1. 1

    Set up your tax rates

    Check the rates loaded for your country, and add any of your own, including compound rates made of several parts.

  2. 2

    Mark each product

    On the product, choose taxable, exempt, zero or nil rated, or out of scope, and the tax rate it carries.

  3. 3

    Add tax rules if you need them

    Create rules that map one rate to another by place of supply and party status, and give them a priority. Leave them out if one rate fits every sale.

  4. 4

    Raise the document

    The form shows which rule applied and where the supply goes. Pick another rule, including No tax, for the whole document if needed.

  5. 5

    Adjust a line if you must

    Switch tax off on a catalogue line, or pick a configured rate on a custom line. Both are limited to permitted users.

In depth

A closer look.

Taxable, exempt, zero-rated and out of scope

These four are not the same thing, and tax returns treat them differently. Flowyana keeps the distinction on the product so reports can too. A product marked exempt, zero or nil rated, or out of scope carries no tax under any rule, so a rule meant for taxable goods cannot add tax to it by accident.

  • Taxable, exempt, zero or nil rated, out of scope
  • Set once on the product
  • Non-taxable products carry no tax under any rule
  • Labels follow your country’s tax name, GST or VAT

Tax rules that pick the rate for you

A tax rule maps one rate to another depending on the situation. For example, a sale to a customer in the same state uses the local rates, while a sale to another state uses the inter-state rate. Rules can also depend on goods or services and on the party’s tax status, such as registered, unregistered, consumer or government. The lowest priority number wins. When no rule applies, each line keeps the tax chosen on it.

  • Same region, another region, same country or another country
  • Registered, unregistered, consumer, government and other party statuses
  • Goods and services mapped separately
  • Priority order, with rules switched off when not needed

No tax on a document, or on a single line

A No tax rule is available in every workspace. It is applied only when you pick it by hand on a document, never automatically, and it can be fixed on a customer or supplier who is always untaxed. For one line, a tax switch on catalogue lines turns tax off or back on. Because that changes the amount a customer pays, it needs the change-tax permission for that document type.

  • The No tax rule on quotations, orders, invoices and purchase documents
  • Never picked automatically
  • Line tax switch gated by a permission
  • Custom lines pick a configured rate, not a typed percentage

Compound tax, shown and posted part by part

Some countries charge a tax made of several parts, such as a central and a state share. In Flowyana you pick one compound rate on the line, and the amounts are split to the cent. The invoice shows a breakdown by part and rate, and the books post each part to its own tax account.

  • One compound rate per line, not several taxes
  • Breakdown by part and rate on the invoice
  • Each part posted to its own tax account
  • Place of supply prompt when regions differ

Who it’s for

Businesses that run on GST & VAT tax rules.

Grocery and general retail

Zero-rated or exempt staples sold beside taxable goods, each product carrying its own treatment.

Traders and distributors in India

Local and inter-state sales getting the right split of GST through a tax rule, with a prompt when the customer’s state differs.

Exporters and free-zone suppliers in the Gulf

Sales to other countries or special zones mapped to a zero rate through a rule, and VAT 201 or VAT return boxes fed from posted documents.

Service companies

Taxable consulting next to out-of-scope reimbursements, with the No tax rule for a client who is not taxable.

Wholesalers with mixed customers

Registered, unregistered and government customers getting different treatment by rule, with no tax typed by hand.

Questions

Asked about gst & vat tax rules.

How do I set up GST or VAT in Flowyana?

Rates are loaded for your country. You mark each product as taxable, exempt, zero or nil rated, or out of scope, choose its rate, and add tax rules only if the rate depends on where the sale goes or who the customer is.

What is the difference between exempt, zero-rated and out of scope?

Exempt supplies are outside the tax, zero-rated supplies are taxed at 0%, and out-of-scope items are not covered by the tax at all. Returns report them differently, so Flowyana keeps the choice on the product. Check with your tax adviser which applies to your goods.

Can I issue an invoice with no tax?

Yes. Pick the No tax rule on the document and every line carries no tax. The rule is never applied automatically.

Can I turn tax off on just one line?

Yes, on a catalogue line, with the tax switch. Only users with the change-tax permission for that document type can use it.

Can staff type any tax percentage they want?

No. A custom line picks from the tax rates you have configured. A catalogue line takes its rate from the product.

Does Flowyana support compound taxes like CGST and SGST?

Yes. Pick one compound rate and the invoice shows each part with its own amount, and the books post each part to its own account.

Does it choose the right tax for sales to another state or country?

Yes, through tax rules by place of supply and party status. Where the branch and customer are in different regions, the form warns you and offers the matching rate in one click.

Is there GST software for small businesses in India?

Yes. Flowyana handles GST rates, compound GST and place of supply on invoices and purchases. It is not limited to India, so the same setup covers VAT in the UAE and Saudi Arabia.

Does Flowyana file my VAT or GST return or send e-invoices to the tax authority?

No. It prepares return boxes from your posted documents in the Tax Returns report, but it does not file with a tax authority or connect to government e-invoicing portals.

Can prices include tax?

Yes. You can set that your prices already include tax, and totals work the tax out of the price.

Who can change tax rules?

Tax settings, rates and rules can be changed by the workspace owner. Switching tax off on a line needs the separate change-tax permission.

One platform

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Accounting shares its records with every other module you switch on — no connectors, no re-typing.

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