This error generally appears in the following situations :
Scenario 1
Incorrect VAT/Tax Class is specified in the Excel or the CSV/Settings file (for Sales/Purchase template).
Ex:
VAT/Tax Class (Incorrect) : Output CST @ 2%
VAT/Tax Class (Correct) : Inter-State Sales
Solution
Step 1 - Find out the correct VAT/Tax Class name in Tally using the option Gateway of Tally >> Display >> Statutory Info.
Step 2 - Specify the correct VAT/Tax Class in the Excel or the CSV/Settings file (for Sales/Purchase template)
Scenario 2
The VAT/Tax Class does not exist in Tally (as you may be using an older version of Tally).
Solution
Step 1 - Upgrade to the latest version of udi-Magic which provides a new option named Disable TaxClassifications in Settings.
Step 2 - Check/enable this option and then retry importing the data.
Remarks:
VAT/Tax Classifications are pre-defined in Tally and cannot be created/altered manually by the user. You must enable the VAT feature using Gateway of Tally >> F11 >> Statutory & Taxation.