Create and Manage Taxes for Zomato

This guide outlines how to set up and manage taxes for your Zomato orders using our platform, ensuring compliance and accurate billing.

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Setting Up Taxes

Follow these steps to configure your tax rates:

Access the Catalog:

• From your dashboard, go to the Catalog option.

Navigate to Taxes:

• Select Taxes from the Catalog menu.

Add Tax Rate:

• Click on Add Tax Rate.

• Enter the required information for your tax.

• GST Division: For GST rates like 5%, 9%, 12%, or 18%, the platform will automatically divide the rate equally into SGST and CGST (e.g., 5% GST will become 2.5% SGST and 2.5% CGST).

Select Applicable Modes:

• Choose the modes that will apply the tax to your item prices or charges.

Save Details:

• Fill in all necessary details and click Save.

Create CGST:

• After completing the SGST setup, repeat the same procedure to create the corresponding CGST.

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Associating Items and Location Groups with Taxes

By default, all items and location groups are automatically associated with the taxes you create. If you need to limit taxes to specific items or locations, follow these steps:

Create Unique Item and Location Groups:

For Item Groups:

• Go to the All Apps section.

• Select Groups.

• Click on Add Item Group, fill in the details, and click Create.

• Navigate to your items and update them to associate with this newly created item group.

For Location Groups:

• Select the Location Group option on the left-hand side.

• Set up a new location group, fill out the details, and associate the relevant locations by clicking Update.

Update Tax Association:

• Once your unique item and location groups are set up, go back to the Taxes option and refresh the page.

• After the page reloads, select the specific tax rate.

• Navigate to the Items and Location tab within that tax rate's settings.

• Remove any previous default location and item group associations.

• Click on Add New.

• Associate the specific item group with the relevant location group, and then click Add to link them to this tax.

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Additional Notes on Tax Liability and Packaged Goods

Understanding tax liability is crucial for accurate billing:

• Tax Rates Above 5%: For any tax rate above 5%, it is considered the Merchant's liability.

• If the tax rate on an item is above 5%, the item must be accompanied by a “packaged goods” tag.

• 5% Tax - Aggregator's Liability (Default): A 5% tax on an item will by default be the aggregator's (Zomato's) liability.

• 5% Tax - Merchant's Liability (with Tag): To make a 5% tax on an item the Merchant’s liability, the item must also be accompanied by a “packaged goods” tag.

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Adding "Packaged Goods" Tag

To mark an item as a "packaged good":

Navigate to Items:

• In the Catalog section, go to Items.

Add Tag:

• Select the specific item.

• Click on Show More to reveal additional options.

• Proceed to add the “packaged goods” tag to the item.

Associate with Groups:

• Associate this item with the appropriate item group you created (if not already done).

• Repeat the steps in the "Associating Items and Location Groups with Taxes" section to link this item (via its item group) to the correct tax rate.