Query
I am getting message "Tax rate/tax type not specified" in the GSTR reports. How to resolve it ?


Preface

The aforesaid message may appear in :
GSTR-1 (Sales / Outward Supply) and/or;

GSTR-2 (Purchase / Inward Supply) and/or;

GSTR-3 (Returns Summary).


Let's take an example to understand the situation(s) in which this problem occurs

Example 1 : Sales with StockItems


Sales Voucher data in Tally (extract)

Party
 StockItem
 Sales Ledger
 Remarks
Name
 State-Name
 Item-Name
 Is GST Applicable Taxability Tax-rate
 Ledger Name
 Is GST
Applicable
 Nature of transaction Tax-rate
Party A

 Gujarat
(i.e. Local Sales)
 ITEM A
 Applicable Unknown
Sales @ 18%
 Applicable
 Not Applicable
Here, the tax-rates are NOT defined at Stockitem level and Ledger level both.


Report : GSTR1

Message : Tax rate/tax type not specified


Solution
- In the above case, the Tax rate is neither defined at the StockItem level nor at the Sales Ledger level

- To resolve the issue, we shall define the Tax rate at the StockItem level
- Use the option "Gateway of Tally >> Inventory Info >> StockItems >> Alter"
- Next, select the ledger "Item A" and set the following options :

  1. Is GST Applicable : Yes
  2. Set GST details : Yes 
    - HSN/SAC : <<Depends upon your item>>
    - Taxability : Taxable
    - Integrated Tax : 18
    - Next, press Ctrl+A (to accept and close the window)
  3. Type of Supply : Goods (or Services)
  4. Press Ctrl+A to accept and save the StockItem.

IMPORTANT

a. If you are using Accounting-with-Inventory (i.e. Stockitems in Sales/Purchase entries), then it is advised that you specify the HSN code and Tax-rates at the StockItem level only (and not the Sales ledger-level).

b. Specifying the GST Tax rates at one place (i.e. Stockitem level) simplifies the whole process.


PS:

The aforesaid message / problem may occur in "Sales with StockItems" or "Purchase with StockItems". The steps to resolve are the same for both Sales and Purchase entries.